Leyou Technologies : ANNOUNCEMENT 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 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.

LEYOU TECHNOLOGIES HOLDINGS LIMITED

樂遊科技控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1089)

ANNOUNCEMENT PURSUANT TO RULE 3.7

OF THE TAKEOVERS CODE

This announcement is made by Leyou Technologies Holdings Limited (the "Company") pursuant to Rule 3.7 of the Hong Kong Code on Takeovers and Mergers (the "Takeovers Code").

Reference is made to the announcements of the Company dated 20 September 2019, 16 October 2019, 13 November 2019, 22 November 2019, 29 November 2019, 9 December 2019, 20 December 2019, 3 January 2020, 13 January 2020, 22 January 2020, 30 January 2020, 17 February 2020, 10 March 2020, 12 March 2020, 9 April 2020, 4 May 2020, 19 May 2020, 17 June 2020, 9 July 2020, 10 July 2020, 14 July 2020, 15 July 2020, 16 July 2020, 17 July 2020, 20 July 2020, 21 July 2020, 22 July 2020, 28 July 2020, 31 July 2020, 4 August 2020, 5 August 2020 and 6 August 2020 (the "Announcements") in relation to, among others, the Possible Offer and the Possible Privatization. Unless otherwise defined, capitalised terms used herein shall have the same meanings as those defined in the Announcements.

PROGRESS OF THE POSSIBLE TAKE PRIVATE TRANSACTION

The Board wishes to update the Shareholders and potential investors of the Company that, as at the date of this announcement, (i) the Potential Acquiror has commenced conducting due diligence review on the Group through its professional advisers; and (ii) the relevant parties are in the course of negotiating the details and terms of the possible take private of the Company and withdrawal of listing (the "Possible Take Private Transaction"). Save as mentioned above, no further progress has been made in relation to the Possible Take Private Transaction and no definitive Possible Take Private Transaction proposal has been furnished to the Company as at the date of this announcement.

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As at the date of this announcement, negotiations are still in progress and there is no certainty (a) as to the terms of the Possible Take Private Transaction and (b) that the Possible Take Private Transaction will proceed or that it will result in a binding agreement. There is no assurance that any negotiations mentioned in this announcement will either materialize or eventually be consummated and the negotiations may or may not lead to a possible acquisition and take private of the Company.

MONTHLY UPDATE

In compliance with Rule 3.7 of the Takeovers Code, monthly announcement(s) setting out the progress of the Possible Offer and/or the Possible Take Private Transaction will be made by the Company until an announcement is made of a firm intention to make an offer under Rule 3.5 of the Takeovers Code or of a decision not to proceed with an offer. Further announcement(s) will be made by the Company as and when appropriate or required in accordance with the Listing Rules and/or the Takeovers Code (as the case may be).

Shareholders and potential investors of the Company should be aware that the Possible Offer and/or the Possible Take Private Transaction may or may not proceed. Shareholders and/or potential investors of the Company are advised to exercise caution in dealing in the securities of the Company.

By order of the board of

Leyou Technologies Holdings Limited

Xu Yiran

Chairman and Chief Executive Officer

Hong Kong, 7 August 2020

As at the date of this announcement, the Directors are Mr. Xu Yiran (Chairman and Chief Executive Officer), Mr. Li Yang (Deputy Chairman), Dr. Alan Chen (Chief Operating Officer), Mr. Gu Zhenghao, and Mr. Cao Bo as executive Directors, Mr. Eric Todd as non-executive Director, and Mr. Hu Chung Ming, Mr. Chan Chi Yuen and Mr. Kwan Ngai Kit as independent non-executive Directors.

The Directors jointly and severally accept full responsibility for the accuracy of information contained in this announcement and confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in the announcement misleading.

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