(30 June, 2020, Hong Kong) TIME Interconnect Technology Limited (the "Company", Stock Code: 1729, with its subsidiaries collectively referred to as the "Group") is pleased to announce that all the conditions precedent as set out in the S&P Agreement have been satisfied and Completion took place on 30 June 2020 (the "Completion Date"). Upon Completion and on the Completion Date, Linkz Cables Limited (華迅電纜有限公司) (the "Target Company", together with its subsidiaries, the "Target Group") became a wholly-owned subsidiary of the Company and the Proposed Continuing Connected Transactions became effective.

 

Linkz Cables Limited is a long-established networking cables manufacturer with its manufacturing facilities located in the PRC. The Target Group has over 26 years of business operation and currently owns three sizable industrial complexes situated in Shanghai and Kunshan City, Jiangsu Province, PRC. It is certified as the first market share ranking of the PRC networking cables market by the China Electronic Components Association. It has technical know-how in the next-generation networking cables, such as Cat 8 cables, PoE, hybrid cables and compatibility with the HDBaseT standard. The Target Group has distinct customer base as compared with the Group and its major customers are reputable multinational corporations that have presence in the PRC. With the successful acquisition, the Group's revenue base will be significantly enlarged and its risk of customer concentration will be mitigated by merging with the diverse customer base of the Target Group. Moreover, the Company believes that the acquisition can better position the Group and the Target Group to capture the evolving opportunities brought by the rapid development of 5G technology, and strategically improves the Group's defence position amid the global economic uncertainties. The expanded business scale after the completion of the acquisition provides the Group a broader and more diversified revenue stream and enhances its profit source.