【Press Release】 12 November 2015
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(Stock Code : 0395)

Smartac Group joins hands with Tencent's Weixin to build "Smart Railway"
Starting a new chapter of "Railway + Internet"

Hong Kong, 12 November 2015 - Smartac Group China Holdings Limited ("Smartac Group" or the "Company", together with its subsidiaries, the "Group", Stock Code: 0395) entered into a cooperation agreement with Tencent's Weixin (微信), incorporating the strong railway traffic and the massive Weixin users. Smartac Group is the largest official Wi-Fi network operator of railway stations in China, with operations in more than 400 railway stations in 11 provinces serving over a billion of passenger flow every year. Tencent's Weixin, the largest mobile instant messaging app in Asia, recorded 600 millions of monthly active users as at 30 June 2015. According to available statistics, 300 million visitors use Weixin in the railway system. The cooperation between Smartac Group and Weixin is undoubtedly the strongest combination of traffic and data, which implies enormous value.

Smart technology is the foundation of building "Smart Railway". Being a Wi-fi network operator and O2O mobile internet application service provider specialising in travel, retail and consumer industries, Smartac Group has been providing location-based services via Weixin in cities, commercial districts, department stores, railway stations and tourists attractions with strong capability in O2O smart solutions, big data and cloud computing. Up to now, there are a number of successful cases, such as operation and maintenance of CTM (Companhia de Telecomunicações de Macau), big data management and operation for international brands e.g. Jaguar Land Rover China, and O2O solutions for international supermarket groups and retail brands.

Convenience, safety and comfort are of great priority for railway travel. With the strong smart technology foundation, China railway, Tencent's Weixin and Smartac Group are going to work together to ensure a convenient, safe and comfortable railway system. Smart services: allowing users to connect Wi-Fi via Weixin; building an integrated portal with "Official Account" (公众号) in Weixin for the railway system to provide integrated passenger service and information such as train information, schedules, delivery service, ticketing and entertainment, with high convenience and efficiency. Smart businesses: adopting Weixin's payment feature, "Weixin wallet" and "Shake" function, to monetise O2O businesses in railway stations (retail, catering, leisure etc.); building a database and information sharing system for railway passengers with Weixin's user network, to enhance visitors' consumption experience.

We will further accelerate the cooperation among China's railway, Tencent's Weixin and Smartac Group, heralding a new chapter of 'Railway + Internet'. This cooperation is just the beginning and both parties highly regard its development. Smartac Group's location-based operation has a close tie to Weixin. We believe that there are more cooperation and potentials in the future.

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About Smartac Group China Holdings Limited
The Company was listed on the main board of The Stock Exchange of Hong Kong Limited in 2002, and has completed an acquisition of the mobile Internet and wireless technology business on 26 November 2013. Currently, the Company is principally engaged in (i) providing O2O solutions by combining wireless technology and social network platforms; and (ii) software development. Currently, the Group is principally engaged in the operation of big data for location-based retailing to assist traditional industries in transitioning to a brand new mobile internet era.

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