EVA Precision Industrial : GENERAL DISCLOSURE UNDER RULE 13.18 OF THE LISTING RULES

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

EVA Precision Industrial Holdings Limited

(Incorporated with limited liability in the Cayman Islands)

(Stock Code: 838)

GENERAL DISCLOSURE UNDER RULE 13.18 OF THE LISTING RULES

On 28 February 2020, EVA Limited (the "Borrower"), a wholly-owned subsidiary of the Company, confirmed its acceptance of the MUFG Facility Letter which contained specific performance obligations on the Controlling Shareholders.

This announcement is made by EVA Precision Industrial Holdings Limited (the "Company", together with its subsidiaries, the "Group") in compliance with the disclosure requirements under Rule 13.18 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

BANKING FACILITIES PROVIDED BY MUFG

On 28 February 2020, the Borrower, a wholly-owned subsidiary of the Company, confirmed its acceptance of the facility letter dated 17 February 2020 issued by MUFG Bank, Ltd. ("MUFG") ("MUFG Facility Letter"). Pursuant to the MUFG Facility Letter, MUFG agrees to make available to the Borrower a new 4-year term loan facility of up to HK$200,000,000 for financing the corporate funding and capital expenditure requirements of the Group. Together with an existing instalment loan with outstanding balance of HK$70,313,000 as at 31 January 2020 and final repayment date in March 2022, the total instalment loan facilities granted by MUFG amounted to HK$270,313,000 ("MUFG Instalment Loan Facilities").

Under the MUFG Facility Letter, Mr. Zhang Hwo Jie, Mr. Zhang Jian Hua and Mr. Zhang Yaohua (together the "Controlling Shareholders") shall (i) collectively hold not less than 35% of the entire issued share capital of the Company; and (ii) shall collectively remain as the single largest shareholder of the Company.

- 1 -

Any breach of the aforesaid specific performance obligations will constitute an event of default under the MUFG Facility Letter whereupon MUFG may declare that the MUFG Instalment Loan Facilities and all accrued interest thereon and any other sum payable under the MUFG Instalment Loan Facilities or the MUFG Facility Letter be immediately due and payable and the MUFG Instalment Loan Facilities shall terminate.

As at the date of this announcement, Mr. Zhang Hwo Jie and Mr. Zhang Yaohua own 52.93% and 47.07% respectively of the issued share capital of Prosper Empire Limited, which in turn owns approximately 39.13% of the issued share capital of the Company. In addition, the Controlling Shareholders also personally hold, in aggregate, approximately 2.02% of the issued share capital of the Company.

In accordance with the Listing Rules, similar disclosure will also be included in the subsequent interim and annual reports of the Company for so long as the aforesaid specific performance obligations continue to exist.

By order of the Board

EVA Precision Industrial Holdings Limited

Zhang Hwo Jie

Chairman

Hong Kong, 28 February 2020

As at the date of this announcement, the board of directors of the Company comprises three executive directors, being Mr. Zhang Hwo Jie (Chairman), Mr. Zhang Jian Hua (Vice Chairman), Mr. Zhang Yaohua (Chief Executive Officer), and three independent non-executive directors, being Mr. Choy Tak Ho, Mr. Leung Tai Chiu and Mr. Lam Hiu Lo.

- 2 -