TC Orient Lighting : SUPPLEMENTAL ANNOUNCEMENT RELATING TO THE USE OF PROCEEDS OF THE 2017 RIGHTS ISSUE

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TC ORIENT LIGHTING HOLDINGS LIMITED

達 進 東 方 照 明 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

website: www.tatchun.com

(Stock Code: 515)

SUPPLEMENTAL ANNOUNCEMENT

RELATING TO

THE USE OF PROCEEDS OF THE 2017 RIGHTS ISSUE

This announcement is made by TC Orient Lighting Holdings Limited (the "Company", which together with its subsidiaries is collectively referred to as the "Group") to provide supplemental information in relation to the use of proceeds of the one-for-one rights issue which was announced on 22 September 2017 and completed on 21 December 2017 (the "2017 Rights Issue").

The intended utilization of the net proceeds from the 2017 Rights Issue was disclosed on page 28 of the Company's circular dated 31 October 2017 and page 28 of the Company's prospectus dated 28 November 2017 in relation to the 2017 Rights Issue. Although the net proceeds were cited as a range due to outstanding options and the transaction costs which have yet to be ascertained at that stage, it was the intention throughout the transaction period that the first HK$96.3 million out of the proceeds from the 2017 Rights Issue should be utilized for the partial repayment of the Group's other payables (principally higher-costshort-term loans) and the remaining proceeds be utilized for partial settlement of the account payable to suppliers which are immediately due or overdue.

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As disclosed on page 18 of the Company's annual report for the year ended 31 December 2017, the net proceeds from the 2017 Rights Issue was determined to be HK$130.8 million, of which HK$110 million was actually utilized for repayment of loan and interest payables, HK$7.4 million for settlement of payables to suppliers and HK$13.4 million remained unutilized as of 31 December 2017. As disclosed on page 18 of the Company' interim results announcement dated 28 August 2018 and page 28 of the Company's interim report for the six months ended 30 June 2018 ("1H2018"), all the previously unutilized proceeds of the 2017 Rights Issue in the amount of HK$13.4 million were fully utilized during 1H2018 also for settlement of payables to suppliers. Therefore, in summary, proceeds utilization for loan repayment was changed from HK$96.3 million to HK$110 million, and proceeds utilization for bills payable repayment was changed from HK$34.5 million to HK$20.8 million.

By way of supplemental information, the board (the "Board") of directors (the "Directors") of the Company wishes to announce that the aforementioned slight change in the use of proceeds of the 2017 Rights Issue was principally due to the Group's ongoing negotiations with lenders and suppliers to extend the repayment dates or the credit periods, resulting in slight changes in the actual repayment schedules of the loan payable to lenders and the bills payable to suppliers as compared to the budget planning projected at the time of the launch and execution of the 2017 Rights Issue. The Board considers that the actual use of proceeds, whether for repayment of loans or suppliers' bills payable, are both for the ultimate purpose of meeting the Group's debts and liabilities when they fall due. Accordingly, the Board is of the view that the slight change in the use of proceeds is not only appropriate and necessary in the circumstances but also in the interest of the Company and its shareholders as a whole.

By order of the Board

TC Orient Lighting Holdings Limited

Zeng Yongguang

Executive Director

Hong Kong, 11 October 2019

As at the date hereof, the Board comprises Mr. Zeng Yongguang, Mr. Xu Ming, Mr. Guo Jun Hao and Mr. Mai Huazhi as executive Directors; and Mr. Li Hongxiang, Mr. Wong Kwok On, Mr. Bonathan Wai Ka Cheung and Dr. Loke Yu (alias Loke Hoi Lam) as independent non- executive Directors.

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