Wed Feb 20

Leyou Technologies Enters into Shares Purchase Agreement with Meitu, Inc.

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HONG KONG, Feb 20, 2019 - (ACN Newswire) - Leyou Technologies Holdings Limited ("Leyou Technologies", and its subsidiaries collectively "the Group"; stock code: 1089) has announced today, that the Group has entered into a Shares Purchase Agreement (the "SP Agreement") with Meitu, Inc. ("Meitu"; stock code: 1357). Leyou Technologies and Meitu will become strategic investors of each other's group.

Pursuant to the SP Agreement, Leyou Technologies will sell 31% of the issued share capital of Dreamscape Horizon Limited ("Dreamscape Horizon"), a wholly-owned subsidiary of the Group, to Metitu at a consideration of HK$2,686,577,470. The consideration shall be satisfied by the allotment and issuance of 991,357,000 consideration shares by Meitu to the Group, at the issue price of HK$2.71 per consideration share, representing approximately 19.08% of the issued share capital of Meitu on a fully diluted basis. The issue price represents (i) a discount of approximately 12.3% to the closing price of HK$3.09 per share of Meitu on the date of the SP Agreement; (ii) a discount of approximately 13.4% to the average closing price of HK$3.13 per share of Meitu in the five consecutive trading days of the shares of Meitu immediately preceding the date of the SP Agreement; and (iii) a premium of approximately 95.0% over the net asset value of approximately HK$1.39 per share of Meitu, based on the unaudited net asset value of Meitu as at 30 June 2018 of RMB5,037,020,000 and 4,204,433,944 shares of Meitu in issue as at 18 February 2019.

Meitu will be entitled to appoint one director to the board of any member of Dreamscape Horizon. For the twelve months ended 31 December 2019, if the consolidated net profits of Digital Extremes (a subsidiary of Dreamscape Horizon) and its subsidiaries (before taking into account any employee bonus other than payment under the existing bonus scheme of Digital Extremes), exceed US$40 million, each member of Dreamscape Horizon shall declare and pay a dividend equivalent to all. For any financial year subsequent to the twelve months ended 31 December 2019, each member of Dreamscape Horizon shall declare and pay a dividend of no less than 50% of its annual net profit for such year to its respective shareholders.

Warframe, a shooter game developed and published by Digital Extremes was one of the 100 top-selling games of 2018 on Steam, the world's largest digital marketplace for PC games. The SP Agreement represents a solid step of Meitu entering the gaming market. The Group will develop various large-scale online games and casual games for Meitu, taking reference to the age, gender and world view of Meitu's large pool of loyal users.

As the shares of Meitu are listed on the Main Board of the Stock Exchange, Leyou Technologies will be able to realize the investment in the consideration shares in the open market after the lock-up period, enhancing the liquidity and financial flexibility of the Group.

The SP Agreement is subject to the fulfilment of certain conditions, and the allotment and issue of the consideration shares are subject to the passing of the resolutions by the shareholders of Meitu at an extraordinary general meeting of the shareholders of Meitu.

About Leyou Technologies Holdings LimitedLeyou Technologies Holdings Limited (1089.HK) is principally engaged in the development and publishing of online multiplayer PC and console video games. It is a global market leader in the niche market of free-to-play online multiplayer games. Leyou Technologies owns multiple world renowned top AAA game development studios and branch organizations across the globe, including Digital Extremes and Splash Damage, and publishes several of the most successful free-to-play online multiplayer games worldwide. Five years since the flagship product "Warframe" has got online, it constantly maintains a top 5 ranking in all genres in terms of number of players and playtime on Steam, and has a positive review score of approximately 91% from players. In addition to the continual premium updates and improvements to its live games, Leyou Technologies also keeps on investing in the development of new products, such as "Civilization Online", "Transformers Online" which is jointly developed by Leyou Technologies and Certain Affinity after Leyou Technologies becoming its shareholder, and a free online game developed with the license granted by "The Lord of the Rings".

For more information, please visit: http://leyoutech.com.hk/^[1]

About Meitu, Inc.Meitu, Inc. (1357.HK) is a leading image processing and social media platform powered by artificial intelligence. The mission of Meitu is to inspire people to express their beauty. Through products like the Meitu BeautyCam photo app, the Meipai short-form video app, e-commerce platform Meitu Beauty and Meitu smartphones, Meitu has shaped the way beauty is expressed and shared around the world.

For more information, please visit: https://corp.meitu.com/^[2]

Media enquiries:Anli Financial Communications Limited Phoebe Li 852-3956 1640 [email protected]Joanne Ho 852-3956 1641 [email protected]^[3]^[4]

Topic: Press release summarySectors: Daily Finance, Enterprise IT, Daily News ^[5]^[6]^[7] http://www.acnnewswire.com From the Asia Corporate News Network

References

^{^} http://leyoutech.com.hk/ (leyoutech.com.hk)
^{^} https://corp.meitu.com/ (corp.meitu.com)
^{^} [email protected] (www.acnnewswire.com)
^{^} [email protected] (www.acnnewswire.com)
^{^} Daily Finance (www.acnnewswire.com)
^{^} Enterprise IT (www.acnnewswire.com)
^{^} Daily News (www.acnnewswire.com)

Authors: ACN Newswire

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