China Netcom Technology : VOLUNTARY ANNOUNCEMENT LETTER OF INTENT FOR STRATEGIC COOPERATION AGREEMENT WITH CAISSA TRAVEL AND AIRPORTS CORPORATION OF VIETNAM

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VOLUNTARY ANNOUNCEMENT

LETTER OF INTENT FOR STRATEGIC COOPERATION AGREEMENT WITH CAISSA TRAVEL AND AIRPORTS CORPORATION OF VIETNAM

The Board is pleased to announce that on 3 January 2017 (while the original signed copy was received by the Company on 9 January 2017), Max Choice (a wholly-owned subsidiary of the Company) entered into the Letter of Intent with Caissa Travel and Airports Corporation of Vietnam (each of them an Independent Third Party) regarding the

business development in relation to Phu Quoc (富國島).

This announcement is made by the Company on a voluntary basis.

The Board is pleased to announce that on 3 January 2017 (while the original signed copy was received by the Company on 9 January 2017), Max Choice (a wholly-owned subsidiary of the Company) entered into the Letter of Intent with Caissa Travel and Airports Corporation of Vietnam (each of them an Independent Third Party) regarding the business

development in relation to Phu Quoc (富國島). The principal terms of the Letter of Intent

are set out below:

Parties: (i) Caissa Travel (an Independent Third Party);

1. Airports Corporation of Vietnam (an Independent Third Party); and

2. Max Choice (a wholly-owned subsidiary of the Company).

Cooperation: Under the Cooperation:

1. Caissa Travel shall:

2. Make use of its advantage in the combination of aviation and travel, join hands with the airlines to prepare to increase the flights from Beijing, Shanghai, Changchun, Chengdu, Hangzhou and Guangzhou to Phu Quoc operated by Caissa Travel and in addition plan to launch the direct flight routes from Nanjing, Chongqing, Shenyang, Xian, Wuhan and Shenzhen to Phu Quoc with an aim to send an accumulative total of at least 100,000 tourists to Phu Quoc;

3. Plan to carry out the operation of full-year chartered rooms of high standard five-star hotels in Phu Quoc;

4. Assist Airports Corporation of Vietnam and Phu Quoc Government in publicising and promoting the travel products of Phu Quoc in the PRC market; and

5. Be responsible for the research and development of multiple types of travel products such as popular, selected, luxurious, private groups and other products in accordance with ''the Belt and Road Initiative'' of the PRC.

6. Airports Corporation of Vietnam shall:

7. Liaise with local officials for authorising Caissa Travel and Max Choice to use the names and logos of various areas of Phu Quoc as well as the pictures and characters of Phu Quoc for travel promotions;

8. Support Caissa Travel and Max Choice from the aspects of information, revenue and others concerning infrastructure and investment in scenic spots;

9. Provide Caissa Travel, Max Choice and their cooperative partners with the latest travel consultation of Phu Quoc region and design consultation of relevant products of ''the Belt and Road Initiative''; and provide in-depth experience or exclusive tourism resources for Caissa Travel to combine the products;

10. Provide the support and fully cooperate in advertising of Caissa Travel in Chinese market in the promotion period from 2017 to 2019; and

11. Be responsible for the reception of media staff and for project leaders to visit Phu Quoc region for investigation and survey on a regular basis.

12. Max Choice shall:

13. Assist Caissa Travel for the development and promotion of chartered flights, tourism and related travel products from the PRC to Phu Quoc and responsible to co-ordinate the necessary resources in Phu Quoc;

14. Work together with Caissa Travel to look for investment opportunities in Phu Quoc; and

15. Assist Airports Corporation of Vietnam and Phu Quoc Government in publicising and promoting the travel products of Phu Quoc in the PRC market.

Miscellaneous: The Letter of Intent shall not be taken as basis for any legal

responsibility of the parties. For specific cooperation projects, a formal cooperation agreement shall be signed by relevant parties in accordance with the needs of cooperation and the formal cooperation agreement shall prevail when there is inconsistency between the Letter of Intent and the formal cooperation agreement.

BACKGROUND OF PHU QUOC, CAISSA TRAVEL AND AIRPORTS CORPORATION OF VIETNAM

Phu Quoc (富國島) is a famous special economic tourism zone of Vietnam and is also the only destination in Vietnam where a visa exemption is available for all tourists. Phu Quoc is now constructing a five-star integrated resort hotel with a casino licence approved by the relevant government departments of Vietnam and is expected to be completed in 2017.

Caissa Travel is a leading luxury integrated outbound tour operator with presence across the industry chain in China and is a member of HNA Group (海航集團) which was ranked

among Global Top 500 Enterprises in 2015 and valued over RMB600 billion, and has 12 listed companies. Caissa Travel is in the course of development of Phu Quoc related touring package. As at the date of this announcement, to the best of the Directors' knowledge, information and belief and having made all reasonable enquiries, Caissa Travel is an Independent Third Party.

Airports Corporation of Vietnam is a Vietnamese Ho Chi Minh City-based state-owned company which manages the 22 existing airports in Vietnam. As at the date of this announcement, to the best of the Directors' knowledge, information and belief and having made all reasonable enquiries, Airports Corporation of Vietnam is an Independent Third Party.

REASONS FOR AND BENEFITS OF THE COOPERATION

The Group's principal activities are provision of lottery system management service and operation of lottery sales halls in the PRC.

The Directors are of the view that the Cooperation, if materialises, can enable the Group to be benefited from diversifying the Group's existing business which is expected to increase the Shareholders' value. The Directors consider the terms of the Letter of Intent are fair and reasonable and the Cooperation is in the interest of the Company and Shareholders as a whole.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following words and expressions shall have the following meanings:

''Airports Corporation of Vietnam''

Airports Corporation of Vietnam, an Independent Third Party and a party to the Letter of Intent

''Board'' the board of Directors

''Caissa Travel'' Caissa Tongsheng Travel Service (Group) Co., Ltd., a

wholly-owned subsidiary of HNA-Caissa Travel Group Co., Ltd. and a member of HNA Group, which is an Independent Third Party and a party to the Letter of Intent

''Company'' China Netcom Technology Holdings Limited, a company incorporated in the Cayman Islands with limited liability and the issued shares of which are listed on GEM

''Cooperation'' the cooperation among, Caissa Travel, Airports Corporation

of Vietnam and Max Choice as contemplated under the Letter of Intent

''Director(s)'' the director(s) of the Company

''GEM'' the Growth Enterprise Market of the Stock Exchange ''GEM Listing Rules'' the Rules Governing the Listing of Securities on GEM ''Group'' the Company and its subsidiaries

''Independent Third Party(ies)''

third party(ies) independent of and not connected with the Company and its connected persons (as defined under the GEM Listing Rules)