Sino Harbour : SUPPLEMENTAL INFORMAT…

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SINO HARBOUR HOLDINGS GROUP LIMITED 漢港控股集團有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 1663)

SUPPLEMENTAL INFORMATION IN RELATION TO ANNUAL

REPORT FOR THE YEAR ENDED 31 MARCH 2017

The board of directors of Sino Harbour Holdings Group Limited (the "Company" and the "Board", respectively) refers the annual report of the Company for the year ended 31 March 2017 published on 27 June 2017 and the announcement of the Company dated 27 November 2015 in respect of the Subscription of equity interest in the Target Company (the "Announcement"). Unless otherwise stated, the terms used in this announcement should have the respective meanings defined in the Announcement.

The Company provides the following information about the Exiting Arrangement between JX Asia City and Smartway.

The audited net loss of the Target Company for the year ended 31 December 2016 (the "Year 2016") was approximately RMB2.7 million (approximately HK$3.3 million). Although the audited net profit of the Target Company for the Year 2016 was less than RMB7.0 million (approximately HK$8.5 million) and the profit guarantee for the Year 2016 was not met, the Company could still choose to execute the Exiting Arrangement if the aggregate audited net profit of the Target Company for the years ending 31 December 2016, 2017 and 2018 is less than RMB27.0 million (approximately HK$32.8 million) (the "Total Profit Guarantee"). The Company will enforce the obligations of Smartway if the Total Profit Guarantee is not met.

As at the date of this announcement, the aggregate investment in the Target Company amounted to RMB11.3 million (equivalent to approximately US$1,768,313 or HK$13.7 million).

As the audited financial statements of the Target Company for the year ended 31

December 2017 have not yet been finalized, the Board will update on this as and when the information is available.

The Board is of the view that the entering into of the Subscription Agreement has been valuable for the Company and its subsidiaries (the "Group") to enter into the pharmaceutical industry. It has provided industrial insight in the pharmaceutical industry and hence facilitated the Group's establishment of Zhejiang IPS Pharmaceutical Technology Co. Ltd (浙江美測醫藥科技有限公司) and investment in

Jiangxi Longyu Medicine Co., Ltd. (江西龍宇醫藥股份有限公司). The Exiting Arrangement would help to safeguard the Group's investment.

The Board considers that the entering into of the Subscription Agreement is in the best interests of the Group and its shareholders as a whole.

By order of the Board

Sino Harbour Holdings Group Limited

SHI Feng

Deputy Chairman and Executive Director

Hong Kong, 18 January 2018

As at the date of this announcement, the Board comprises seven directors of the Company (the "Directors"), including three executive Directors, namely Mr. SHI Feng (Deputy Chairman and Chief Executive Officer), Mr. WONG Lui and Ms. GAO Lan; one non-executive Director, namely Ms. CHAN Heung Ling (Chairlady); and three independent non-executive Directors, namely Mr. XIE Gang, Mr. LEE Man To and Ms.

ZHANG Juan.