Buyer Consortium Updates Shareholders of Hollysys Automation Technologies With Additional Information Relating to Consent Solicitation

The buyer consortium (the “Consortium”) consisting of Mr. Shao Baiqing, Ace Lead Profits Limited, and CPE Funds Management Limited today issued a letter to shareholders of Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) (the “Company” or “Hollysys”) with additional information regarding the Consortium’s proposed acquisition of the Company and the consent solicitation. The Consortium strongly believes that the proposed acquisition is the best and only option to shareholders to achieve immediate liquidity on their investment, at a highly attractive premium and with far greater certainty. The Consortium reminds shareholders of the Company as of June 24, 2021 to sign, date and return the WHITE consent card as soon as possible before July 22, 2021.

The full text of the Consortium’s letter is as follows:

Dear Fellow Shareholders,

We, the buyer consortium (the “Consortium” or “we”) consisting of Mr. Shao Baiqing (“Mr. Shao”), Ace Lead Profits Limited (“Ace Lead”), and CPE Funds Management Limited (“CPE”) would like to remind you to please submit your consent to our resolutions concerning the proposed acquisition (the “Proposed Acquisition”) of all outstanding ordinary shares of the Company not already owned by the Consortium at a price of $17.10 per share in cash, by following the instructions on the WHITE consent card.

If you hold shares through a bank or broker (i.e., in “street-name” or as a “beneficial owner”) and have not yet received the Consortium’s consent materials by mail or email, please contact your bank or broker as soon as possible and request instructions regarding the WHITE consent card. If you are a record holder (i.e., you hold shares in your own name on the register of members of the Company), please promptly contact Innisfree M&A Incorporated (“Innisfree”), the firm assisting the Consortium with the consent solicitation, at the telephone number or email address below to request a copy of the WHITE consent card.

Additionally, in case it is helpful, we would like to share with all shareholders the information we have provided in response to certain limited inquiries we have received:

Q.		Will the results of the consent solicitation commit shareholders to the Proposed Acquisition?
		No. We would like to reiterate that the consent is non-binding as to the Proposed Transaction generally and the $17.10 per share offer price specifically. As noted in our June 29, 2021 press release (italic and bold font added for emphasis purposes): “This solicitation, if successful, will facilitate the Consortium’s efforts to proceed with the Proposed Acquisition despite the inaction of the board of directors of the Company (the “Board”). If shareholders holding more than 50% of the outstanding shares of the Company deliver their consents to the resolutions as provided in the consent card, such resolutions will become effective pursuant to the Company’s articles of association and the BVI Business Companies Act 2004. The intention of these resolutions is, among others, to limit the Board’s power to invoke and exercise rights pursuant to the Company’s existing “poison pill” in respect of the Proposed Acquisition. These approved resolutions, even after becoming effective, do not constitute an approval and authorization of the Proposed Acquisition by shareholders. Shareholders of the Company will be entitled to consider and vote upon the Proposed Acquisition at a special shareholder meeting to be called by the Board following the execution of a definitive merger agreement between the Consortium and the Company in respect of the Proposed Acquisition.”Shareholders may find the full text of our June 29, 2021 press release, as well as other information about our consent solicitation and the Proposed Acquisition, on the dedicated website at Hollysyspublicsolicitation.net.