Sheen Tai : Announcements and Notices - Profit Warning

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Sheen Tai Holdings Group Company Limited

順泰控股集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 01335)

PROFIT WARNING

This announcement is made by Sheen Tai Holdings Group Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the

"Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that the Group is expected to record a loss attributable to owners of the Company for the six months ended 30 June 2019 (the "Reporting Period") as compared with a profit recorded for the corresponding period in 2018.

The Board considers that the aforesaid turnaround from profit to loss position was primarily attributable to:

1. decrease in revenue arising from the sales of sub-processing cigarette film segment of the Group during the Reporting Period; and
2. increase in the Group's distribution costs during the Reporting Period by approximately HK$1.7 million.

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The information contained in this announcement is only based on the preliminary assessment by the Board on the unaudited consolidated management accounts of the Group for the six months ended 30 June 2019 and is not based on any figure or information which has been audited or reviewed by the Company's auditors and the audit committee of the Company and is subject to possible adjustments upon further review. The Company is in the process of finalising the interim consolidated results of the Group for the six months ended 30 June 2019. Further information and other details of the Group's financial performance for the six months ended 30 June 2019 will be announced in the forthcoming interim results announcement in August 2019.

Shareholders and potential investors should exercise caution when dealing in the shares

of the Company.

By order of the Board

Sheen Tai Holdings Group Company Limited

Guo Yumin

Chairman

Hong Kong, 12 August 2019

As at the date of this announcement, the executive Directors are Mr. Guo Yumin, Ms. Xia Yu and Mr. Zeng Xiangyang and the independent non-executive Directors are Ms. Fan Qing, Mr. Lo Wa Kei, Roy and Mr. Fong Wo, Felix.

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