MOBI Development : VOLUNTARY ANNOUNCEMENT - BUSINESS UPDATE IN RELATION TO RECENT OUTBREAK OF NOVEL CORONAVIRUS

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MOBI Development Co., Ltd.

摩 比 發 展 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 947)

VOLUNTARY ANNOUNCEMENT

BUSINESS UPDATE IN RELATION TO

RECENT OUTBREAK OF NOVEL CORONAVIRUS

This announcement is made by the board of directors (the "Board") of MOBI Development Co., Ltd. (the "Company", together with its subsidiaries, the "Group") on a voluntary basis. This announcement is to inform the shareholders of the Company and potential investors of the latest business development of the Group.

Since the outbreak of the novel coronavirus (the "Coronavirus"), a number of provinces and municipalities in the Peoples' Republic of China (the "PRC") have taken emergency public health measures and various actions to prevent the spread of the Coronavirus, including imposing restriction on the resumption date of production after the Chinese New Year Holidays. The Board has been monitoring the development of the epidemic closely and making responses cautiously. The executive directors and senior management of the Group established the MOBI Group's epidemic prevention and emergency management command team (the "emergency team") on 26 January 2020 to monitor and respond to the development of the epidemic closely. Significant events will be reported promptly to the emergency team for unified decision-making. The emergency team will also coordinate the implementation of the relevant measures by the Group's management team and all departments.

Currently, the production facilities of the Group have been gradually resuming normal operations. Despite (i) the suspension or limited service of transportation facilities in certain areas; or (ii) the implementation of the 14-day mandatory quarantine measures, the Group has been striving to ensure that the supply of raw materials from its suppliers and the logistics of the related supply chains will not be adversely affected, so that the production schedule and delivery of products to the customers as initially planned will be maintained. Under these circumstances, the Group has been working closely with its suppliers to accelerate the delivery of raw materials and maintaining close communications with its customers to meet the planned delivery schedule. Furthermore, the Group has worked in accordance with relevant requirements by the PRC government and taken comprehensive and stringent prevention and control measures to fight the Coronavirus, and has achieved preliminary results in implementing these measures. While the Group has gradually resumed production, the Group will continue to follow these prevention and control measures strictly to ensure that its employees can work in a safe and healthy environment.

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The Board will continue to assess the impact of the epidemic on the Group's operations and financial performance and monitor the Group's exposure to the risks and uncertainties in connection with the Coronavirus closely. The Group will also implement appropriate business strategies to mitigate the potential adverse impact on the Group's business operations arising from the outbreak of the Coronavirus. To enhance communications between the Company and the stakeholders, and in particular, timely communications with the investors, the Company will make further announcements on the latest development in the Group's operations in due course. Meanwhile, the Group will continue to strengthen its cost control and take appropriate measures in a timely manner. Supported by the Group's solid foundation and strong net cash position, the Board is also confident that the Group can overcome the existing difficulties.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in shares of the Company.

By Order of the Board

MOBI Development Co., Ltd.

HU Xiang

Chairman

Hong Kong, 21 February 2020

As at the date of this announcement, the executive directors of the Company are Mr. HU Xiang and Mr. LIAO Dong; the non-executive director is Mr. QU Deqian; and the independent non-executive directors are Mr. LI Tianshu, Mr. ZHANG Han and Ms. GE Xiaojing.

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