Capxon International Electronic : Inside Information - FURTHER APPEAL AGAINST COURT DECISION

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CAPXON INTERNATIONAL ELECTRONIC COMPANY LIMITED

凱普松國際電子有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 469)

INSIDE INFORMATION

FURTHER APPEAL AGAINST COURT DECISION

This announcement is made by Capxon International Electronic Company Limited ("Company") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap 571 of the Laws of Hong Kong).

Reference is made to the Company's announcement dated 5 February 2016 ("Announcement") and the sub-paragraph headed "Management Discussion and Analysis - Material Proceedings" in the interim report of the Company for the six months ended 30 June 2016 ("2016 Interim Report"). Capitalised terms used herein shall have the same meanings as those defined in the Announcement, unless otherwise specified.

BACKGROUND

As disclosed in the Announcement and the 2016 Interim Report, Capxon Taiwan filed a petition to the Tokyo District Court in October 2014 for the annulment of the Arbitral Award. On 22 January 2016, the Tokyo District Court issued its decision in relation to the Arbitral Award, whereby it dismissed the petition of Capxon Taiwan and upheld the decision of the Arbitration Association in Japan regarding the Arbitral Award. In February 2016, Capxon Taiwan lodged an appeal to the Tokyo High Court for the annulment of the Arbitral Award.

UPDATE ON APPEAL AGAINST COURT DECISION

On 16 February 2017, the Tokyo High Court issued its decision ("Court Decision"), whereby it dismissed the appeal of Capxon Taiwan and upheld the decision of the Arbitration Association in Japan regarding the Arbitral Award.

The board of directors of the Company ("Board") considered the Court Decision and has decided to lodge a further appeal against the Court Decision for the annulment of the Arbitral Award. Should there be any further material developments regarding the Arbitral Award, the Company will issue further announcement(s) in accordance with the Listing Rules and applicable laws as and when appropriate.

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

By order of the Board

Lin Chin Tsun

Chairman

Hong Kong, 22 February 2017

As at the date of this announcement, the Board is composed of four executive directors, namely Mr. Lin Chin Tsun (Chairman and President), Ms. Chou Chiu Yueh (Vice President), Mr. Lin Yuan Yu (Chief Executive Officer) and Ms. Lin I Chu, one non-executive director, namely Ms. Liu Fang Chun and three independent non-executive directors, namely Mr. Lai Chung Ching, Mr. Lu Hong Te and Mr. Tung Chin Chuan.