Circle International Holdings Limited (NSX:CCH) Business Update

Sydney, April 7, 2022 AEST (ABN Newswire) - Circle International Holdings Limited (NSX:CCH) ('Circle International' or the 'Company') is pleased to update shareholders on its recent exciting developments.

Samsung & Repair Control Centers

One Mobile Care Sdn Bhd's (OMC) record for repair, warranty, aftersales service, and parts replacement has led to successfully being engaged by electronic giant Samsung's smartphone division.

OMC has commenced ensuring that Samsung has a fast qualified local high-quality repairer for Samsung's customers who own its products, including the household name Galaxy line. One Mobile's depth of experience, training experience and market penetration is planned to be integral to support Samsung's own implementation of their own branded centralised repair centers (CRC). Circle International is pleased that One Mobile Care Sdn Bhd (OMC) is Samsung's first Malaysian based CRC partner.

RealMe

OMC also finalised an agreement with emerging Chinese powerhouse RealMe Mobile Telecommunications (Shenzhen) Co., Ltd to become its Malaysian official authorised service center partner.

Twenty (20) RealMe brand service centers are being planned in Malaysia in FY 2022, at an estimated AUD 2M. OMC aside from being a service center partner in its existing stores, is appointed in an advisory capacity to support RealMe to achieve their Malaysian expansion of service and sale goals.

Circle International Holdings Group CEO, Agnes Lim said: "This is a positive technical support move with Samsung's strategy to introduce UB Screen Repair instead of OCTA Module replacement which will support their brand leadership across a range of premier smartphone and tablet products to reduce the warranty cost of replacement.

"We are incredibly proud to be the first CRC Center for Samsung in Malaysia. It speaks to our operational capability to deliver superb quality service across our 10-year record of supporting Samsung to now act as a service center provider for Samsung smartphones with their trusted customers. That achievement of a not entirely different to our enormously satisfaction in our commercial partnership with global brand RealMe. That further underlines OMC's service center capabilities, market penetration and brand recognition. In my view these deals will drive revenue, enhance, and promote our brand, increase local employment, and reduce each giant's carbon footprint through the lifecycle of the devices.

"Each partner has engaged our expertise to assist their commercial goals in Malaysia, and we believe that doing so will benefit our customers, consumers generally, across the multiple price points and feature differentiations that both companies adopt to make them the market leaders they are in this technology."

Neo Connect Apps update

MPS Telecommunication Sdn Bhd (MPS) moved from beta to live production and sale. Its NEO Connect Apps are expected to increase revenue in the e-commerce market segment that accounted for circa 45% of its in FY 2020 and 2021.

NEO Connect empowers end consumers by providing access to a comprehensive e-commerce platform Store System. This delivers a suite of products and services to the fingertips of customers and sellers, by providing a home shopping experience through the augmented reality "Widget Store" based on a rapidly emerging technology to enrich the real world with digital convenience and capability.

Sale of Pre-Restructure Subsidiaries Completion

Circle International is pleased that the business restructure approved by shareholders has legally concluded with the nominal sale and removal of former subsidiaries on 31 December 2021. This retrospectively recognised completion date for the sale on 31 December 2021, aligns the 'new Circle International' with its annual reporting year. This supports a clean division of reporting for integration in accounting and audit purposes and will provide shareholders with a clear window to appreciate the impact of the new businesses on their share value. The subsidiaries were sold at a nominal $1AUD per entity, and included their book debts, the deteriorated loss producing assets, and accrued carried forward losses. Accordingly, the following entities are no longer subsidiaries as of 1 January 2022.

a. Circle Corporation International Limited

b. Circle Corp Media-Tech Sdn Bhd

c. Inno Mind Works Sdn Bhd