Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

SOLOMON SYSTECH (INTERNATIONAL) LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2878)

SUPPLEMENTAL ANNOUNCEMENT

IN RELATION TO

THE ANNUAL REPORT OF THE COMPANY

FOR THE YEAR ENDED 31 DECEMBER 2019

Reference is made to the annual report of Solomon Systech (International) Limited (the "Company") for the year ended 31 December 2019 published on 15 April 2020 (the "Annual Report"). Unless otherwise defined, capitalised terms used herein shall have the same meanings as those used in the Annual Report.

Related parties and connected transactions

In addition to the information disclosed in the section headed "Related parties and connected transactions" of the Annual Report, the board of directors of the Company (the "Board") wishes to provide the following information:

1. The transaction date and total consideration for the financial year ended 31 December 2019 in respect of each of the three continuing connected transactions disclosed in page 62 of the Annual Report are as follows:

Actual

Date of the

transaction

relevant

Annual caps

amount for

continuing

for the year

the year

connected

ended

ended

transaction

31 December

31 December

Nature of Transactions

agreement

Term

2019

2019

US$'000

US$'000

Sales of products by the

20 November

1 January 2018

15,000

-

Group to Panda-LCD

2017

to 31 December

2020

Sales of products by the

20 November

1 January 2018

10,000

-

Group to Panda-FPD

2017

to 31 December

2020

CEACI purchase IC and

17 July 2018

1 January 2018

24,000

14,568

driver products from

to 31 December

the Group

2020

1

  1. The Board would like to clarify that there was an inadvertent typographical error on in the third paragraph of page 63 of the 2019 Annual Reports and that the reference to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") was intended to refer to "Rule 14A.56" of the Listing Rules instead of "Rule 14A.38" of the Listing Rules.
  2. During the year ended 31 December 2019, the Group had entered into certain related party transactions as set out in note 34(b) of the notes to the consolidated financial statements contained in the Annual Report, and such related party transactions constitute connected transactions that were exempt from reporting, announcement and shareholders' approval requirements under Chapter 14A of the Listing Rules.

Share Option Scheme

Further, in addition to the information disclosed in the section headed "Share Option Scheme" of the Annual Report, the Board would like to provide the following information:

  1. Particulars of the outstanding options of the Company at the beginning and at the end of the financial year ended 31 December 2019 as required under Rule 17.07(1) of the Listing Rules are set out in the Appendix to this announcement.
  2. Details including the vesting period and closing price of the shares of the Company immediately before the date on which the options were granted during the year ended 31 December 2019 as required under Rule 17.07(2) of the Listing Rules are set out below:
    1. On 9 May 2019, the Company granted a total of 2,000,000 share options to a Director of the Company under the 2013 Share Option Scheme. The vesting period of the option granted is from 9 May 2019 to 14 December 2019 for which the grantee has to continue to be the acting Chief Executive Officer from the date of grant until 14 December 2019, being the proposed end date of the acting period. The options entitle the grantee to subscribe for a total of 2,000,000 shares of the Company at an exercise price of HK$0.248 per share. The closing price of the shares of the Company immediately before the date on which the options were granted was HK$0.244.
    2. On 30 December 2019, the Company granted a total of 2,400,000 share options to certain Independent Non-executive Directors of the Company ("INEDs") and 100,000 share options to an employee under the 2013 Share Option Scheme. The vesting period of the options granted to INEDs is from 30 December 2019 to 20 May 2020 (2020 annual general meeting date) for which the grantees have to continue to be a member of the Board from the date of grant until 30 June 2020 or the 2020 annual general meeting date, whichever is earlier. The vesting periods of the options granted to the employee is 50% from 30 December 2019 to 29 December 2020 and 50% from 30 December 2020 to 29 December 2021. The options entitle the grantees to subscribe for a total of 2,500,000 shares of the Company at an exercise price of HK$0.159 per share. The closing price of the shares of the Company immediately before the date on which the options were granted was HK$0.159.
  4. In respect of the disclosure requirement pursuant to note 3 of Rule 17.08 of the Listing Rules on treatment of forfeiture prior to the expiry date of options granted, the Board would like to clarify that in accordance with the accounting policies of the Company as stated in the Annual Report, for awards that do not ultimately vest, no expense is recognized.

2

The above additional information does not affect any other information contained in the Annual Report, and save as disclosed in this announcement, all other information in the Annual Report remains unchanged.

By Order of the Board

SOLOMON SYSTECH (INTERNATIONAL) LIMITED

Wang Wah Chi, Raymond

Chief Executive Officer

Hong Kong, 30 July 2020

As at the date of this announcement, the Board comprises: (a) Executive Directors - Mr. Wang Wah Chi, Raymond (Chief Executive Officer) and Mr. Lo Wai Ming; (b) Non-executive Directors - Mr. Ma Yuchuan (Chairman), Dr. Li Jun and Mr. Yu Jian; and (c) Independent Non-executive Directors - Mr. Leung Heung Ying, Mr. Sheu Wei Fu and Mr. Yiu Tin Chong, Joseph.

3

Appendix

Number of share options (in thousand units)

Lapsed/

Exercise

Granted

Exercised

Forfeited

Held on 31

price per

1 January

during

during

during

December

Grant date

share

2019

the year

the year

the year

2019

Vesting period

Exercise period

(HK$)

30 March 2015

0.309

100

-

-

(100)

-

30 March 2015 to

3 April 2017 to

31 March 2017

29 March 2019

2 October 2015

0.315

200

-

-

(200)

-

2 October 2015 to

2 October 2017 to

29 September 2017

30 September 2019

11 January 2016

0.369

1,000

-

-

-

1,000

11 January 2016 to

2 April 2018 to

31 March 2018

31 March 2020

0.369

1,000

-

-

-

1,000

11 January 2016 to

2 January 2019 to

31 December 2018

31 December 2020

0.369

2,500

-

-

(2,500)

-

11 January 2016 to

1 April 2019 to

31 March 2019

31 March 2021

0.369

2,500

-

-

(2,500)

-

11 January 2016 to

2 January 2020 to

31 December 2019

31 December 2021

30 September 2016

0.305

2,400

-

-

(2,400)

- 30 September 2016 to

3 October 2017 to

7 June 2017

30 September 2019

0.305

1,260

-

-

-

1,260

30 September 2016 to

2 April 2018 to

30 March 2018

31 March 2020

0.305

3,000

-

-

(3,000)

- 30 September 2016 to

1 April 2019 to

29 March 2019

31 March 2021

0.305

3,000

-

-

-

3,000

30 September 2016 to

1 April 2019 to

29 March 2019

31 March 2021

9 October 2017

0.370

2,400

-

-

-

2,400

9 October 2017 to

2 October 2018 to

6 June 2018

30 September 2020

9 October 2018

0.254

2,400

-

-

-

2,400

9 October 2018 to

2 October 2019 to

5 June 2019

30 September 2021

9 May 2019

0.248

-

2,000

-

-

2,000

9 May 2019 to

2 January 2020 to

14 December 2019

31 December 2021

30 December 2019

0.159

-

2,400

-

-

2,400

30 December 2019 to

2 October 2020 to

30 June 2020 or the

30 September 2022

2020 annual general

meeting date,

whichever is earlier.

0.159

-

50

-

-

50

30 December 2019 to

2 January 2021 to

29 December 2020

31 December 2022

0.159

-

50

-

-

50

30 December 2019 to

2 January 2022 to

29 December 2021

31 December 2023

Total

21,760

4,500

-

(10,700)

15,560

4

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Solomon Systech (International) Ltd. published this content on 30 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2020 09:00:05 UTC