Hong Kong Exchanges and Clearing : INSIDE INFORMATION BUSINESS UPDATE AND PROFIT WARNING

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

SOLIS HOLDINGS LIMITED

守 益 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2227)

INSIDE INFORMATION

BUSINESS UPDATE AND

PROFIT WARNING

This announcement is made by Solis Holdings Limited (the ''Company'', together with its subsidiaries, the ''Group'') pursuant to Rule 13.09(2) 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 Laws of Hong Kong).

Business Update

The board (the ''Board'') of directors (the ''Directors'') of the Company is pleased to announce that the Group has recently been awarded a new project for a total contract sum of approximately S$6.8 million. The awarded project has commenced in July 2019 and is expected to be completed within 24 months from date of commencement.

The Group is still active in submitting tenders despite the construction market sentiment in Singapore being subdued since the start of 2018. As at the date of this announcement, there are ongoing tenders in aggregate amounting to approximately S$710.1 million which the Group is negotiating and closely monitoring. Further announcement(s) will be made by the Company on a voluntary basis to keep the shareholders of the Company informed if any of the submitted tenders materialise.

Profit Warning

The Board of Directors of the Company wishes to inform the potential investors and shareholders of the Company (the ''Shareholders'') that, based on the preliminary review on the unaudited consolidated management accounts of the Group and information currently available to the Board, the

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Group is expected to record a net loss after tax of not more than S$1.0 million for the six months ended 30 June 2019 (the ''Interim Period'') as compared to a net profit after tax of S$1.2 million for the six months ended 30 June 2018.

Such decrease were mainly due to lull in securing new tenders since the start of 2018 due to keen market competition; and increase in subcontracting costs for an approximate amount of S$1.1 million for the Interim Period as compared to the six months ended 30 June 2018.

The above information is only a preliminary assessment based on the unaudited consolidated management accounts of the Group for the Interim Period currently available to the Company, which may be subject to further adjustment after further review by the Board, review by the Company's audit committee and the Company's auditors. Details of the financial information of the Group will be disclosed in the interim results announcement of the Group for the Interim Period, which is expected to be published on or about 23 August 2019.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

Solis Holdings Limited

Tay Yong Hua

Executive Chairman and Executive Director

Hong Kong, 15 August 2019

As at the date of this announcement, the executive Directors are Mr. Tay Yong Hua, Mr. Tay Yong Meng and Mr. Kenneth Teo Swee Cheng (Kenneth Zhang Ruiqing); the independent non-executive Directors are Ms. Theng Siew Lian Lisa, Mr. Tan Sin Huat Dennis and Mr. Cheung Garnok.

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