Joint announcement inside information monthly progress update pursuant to rule 3.7 of the takeovers code

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this joint 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 joint announcement.

The information set out below in this joint announcement is provided for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for shares in Fullshare

Holdings Limited or China High Speed Transmission Equipment Group Co., Ltd.

Fullshare Holdings Limited

ᔮସછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 658)

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 00607)

JOINT ANNOUNCEMENT

INSIDE INFORMATION

MONTHLY PROGRESS UPDATE PURSUANT TO RULE 3.7 OF

THE TAKEOVERS CODE

This joint announcement is made pursuant to Rule 3.7 of The Hong Kong Code on Takeovers and Mergers (the "Takeovers Code") and the Inside Information Provisions under Part XIVA of the SFO by the respective board of directors of Fullshare Holdings Limited ("Fullshare") and China High Speed Transmission Equipment Group Co., Ltd. ("CHS", together with its subsidiaries, the "CHS Group").

References are made to the joint announcements issued by Fullshare and CHS dated (i) 18 January 2018 and 14 February 2018 in relation to, among other things, the Proposed Offer and the Possible Disposal; (ii) 15 March 2018 in relation to, among other things, the possible change of transaction structure from a possible conditional voluntary partial cash offer for the issued shares of CHS to the Possible Transaction and the Possible Mandatory Offer; (iii) 25 April 2018 in relation to, among other things, the Earnest Money Agreement and the Supplemental MOU; (iv) 30 June 2018 in relation to the Framework Agreement, the Possible Sale and Purchase, the Possible CHS Disposal and the publication of the Preliminary Restructuring Report by the Potential Offeror; and (v) 16 April 2018, 25 May 2018, 25 June 2018 and 2 August 2018 in relation to the monthly update of the Possible Transaction and the Possible Mandatory Offer (collectively, the "Joint Announcements"). Capitalised terms used herein shall have the same meanings as those defined in the Joint Announcements unless specified otherwise.

* For identification purpose only 1

Fullshare and CHS wish to update their respective shareholders and potential investors that as at the date of this joint announcement, as informed by the Potential Offeror and Five Seasons, (i) the discussions between Five Seasons and the Potential Offeror are still on-going; and (ii) save for the MOU, the Supplemental MOU, the Earnest Money Agreement and the Framework Agreement (each contains certain legally binding provisions as disclosed in the Joint Announcements), no commitment or any formal or legally binding agreement has been reached or entered into in respect of the material terms and conditions of the Possible Sale and Purchase as at the date of this joint announcement.

POSSIBLE CHS DISPOSAL

As disclosed in the joint announcement made by Fullshare and CHS dated 30 June 2018, pursuant to the Framework Agreement, Fullshare and Five Seasons have agreed to procure CHS to undertake the Possible CHS Disposal and completion of the Possible CHS Disposal is one of the conditions to the completion of the Possible Sale and Purchase.

Fullshare and CHS would like to update their respective shareholders and potential investors that, save for the First CHS Disposals as disclosed in the joint announcement made by Fullshare and CHS dated 2 August 2018, CHS has not yet entered into any definitive and legally binding agreements in respect of the Possible CHS Disposal as at the date of this joint announcement. Further announcement(s) setting out the progress of the Possible CHS Disposal will be made by Fullshare and CHS as and when appropriate or required in accordance with the Listing Rules and the Takeovers Code (as the case may be) and Fullshare and CHS will also make an update announcement on a monthly basis as well as when any definitive agreement for the Possible CHS Disposal is entered into.

PRELIMINARY RESTRUCTURING REPORT

As informed by the Potential Offeror, as at the date of this joint announcement, the Potential Offeror and its professional advisers are still in the course of preparing the reply to the enquiry letter dated 9 July 2018 from the Shenzhen Stock Exchange relating to the Preliminary Restructuring Report of the Potential Offeror (Enquiry Letter [2018] No. 14)* (ᗫ׵࿁อΈ෥ϓٰ΅Ϟࠢʮ̡ٙࠠଡ଼ਪ༔Ռ'€ʕʃؐࠠ ଡ଼ਪ༔Ռ€ʔცБ݁஢̙ [2018]ୋ14໮).

POSSIBLE MANDATORY OFFER

Subject to the entering into of the formal sale and purchase agreement, if the Possible Sale and Purchase materialises and is completed, it will result in a change in control of CHS and the Possible Mandatory

Offer to be made under Rule 26.1 of the Takeovers Code.

MONTHLY ANNOUNCEMENTS

Further announcement(s) setting out the progress of the Possible Sale and Purchase and the Possible Mandatory Offer will be made by Fullshare and CHS as and when appropriate or required in accordance with the Listing Rules and the Takeovers Code (as the case may be) and in any event on a monthly basis until announcement of firm intention to make the offers under Rule 3.5 of the Takeovers Code or of a decision not to proceed with the offers is made.

CAUTION

There is no assurance that the Possible Sale and Purchase will materialise. If the completion of the Possible Sale and Purchase takes place, the Potential Offeror will make a Possible Mandatory Offer pursuant to Rule 26.1 of Takeovers Code for the securities (as defined in Note 4 to Rule 22 of the Takeovers Code) of CHS. Even if a formal sale and purchase agreement is entered into among Fullshare, Five Seasons and the Potential Offeror, but if the conditions set out therein cannot be satisfied, the formal sale and purchase agreement may or may not be consummated. As at the date of this joint announcement, there is no assurance that there will be a general offer under Rule 26.1 of Takeovers Code for the securities (as defined in Note 4 to Rule 22 of the Takeovers Code) of CHS.

Shareholders and potential investors of Fullshare and CHS should exercise caution when dealing in the securities of Fullshare or of CHS, and if they are in any doubt about their position, they should consult their professional adviser(s).

As at the date of this joint announcement, the executive directors of Fullshare are Mr. Ji Changqun, Mr. Wang Bo and Ms. Du Wei; and the independent non-executive directors of Fullshare are Mr. Lau Chi Keung, Mr. Chow Siu Lui and Mr. Tsang Sai Chung.

As at the date of this joint announcement, the executive directors of CHS are Mr. Chen Yongdao, Mr. Wang Zhengbing, Mr. Zhou Zhijin, Mr. Hu Jichun and Ms. Zheng Qing; the non-executive directors of CHS are Mr. Hu Yueming and Mr. Yuen Chi Ping; and the independent non-executive directors of CHS are Dr. Chan Yau Ching, Bob, Ms. Jiang Jianhua, Mr. Jiang Xihe and Mr. Nathan Yu Li.

The directors of Fullshare jointly and severally accept full responsibility for accuracy of the information contained in this joint announcement (other than information relating to CHS) and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this joint announcement (other than those expressed by CHS) have been arrived at after due and careful consideration and there are no other facts not contained in this joint announcement, the omission of which would make any statement in this joint announcement misleading.

The directors of CHS jointly and severally accept full responsibility for accuracy of the information contained in this joint announcement (other than information relating to Fullshare) and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this joint announcement (other than those expressed by Fullshare) have been arrived at after due and careful consideration and there are no other facts not contained in this joint announcement, the omission of which would make any statement in this joint announcement misleading.

* For identification purposes only