Kidztech : ESTIMATE FOR ANNUAL RESULTS OF 2020

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Kidztech Holdings Limited փɻ༺છٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 6918)

ESTIMATE FOR ANNUAL RESULTS OF 2020

This announcement is made by Kidztech Holdings Limited (the "Company", together with its subsidiaries collectively referred to as the "Group") pursuant to Rule 13.09(2)(a) 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 in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board ("Board") of directors (the "Directors") of the Company hereby informs the shareholders (the "Shareholders") and potential investors of the Company that, based on the preliminary assessment made by the Board on the Group's unaudited consolidated management accounts and the information currently available to the Board, the Group expects to record (i) a revenue of approximately RMB295.9 million for the year ended 31 December 2020 (the "FY2020") when compared with the revenue of RMB325.8 million recorded for the year ended 31

December 2019 ("FY2019"), representing a decrease of approximately 9.2%; and (ii) a net profit of approximately RMB24.1 million for FY2020 when compared with a net profit of RMB35.4 million recorded for FY2019, representing a decrease of approximately 31.9%. If the one-time listing expenses are excluded, a net profit of approximately RMB36.6 million is expected to be recorded for FY2020 when compared with a net profit of RMB51.8 million recorded for FY2019, representing a decrease of approximately 29.3%.

The Board believes that the above performance changes are mainly attributable to the impact caused by the outbreak of the Coronavirus disease epidemic ("COVID-19"), resulting in the adjustment in revenue classification by the Company. The Company took the initiative to reduce its sales to markets in Europe and the United States of America which are places more seriously affected by COVID-19, resulting in a decrease in the amount and proportion of revenue attributable to direct sales of such overseas customers.

The information contained in this announcement (i) is based on data and information which are still being audited by the auditor of the Company; and (ii) has not been reviewed by the audit committee of the Company, and therefore may be subject to change. The information may also be subject to adjustments following further review and finalisation of the consolidated financial statements of the Group for FY2020 by the Board. Accordingly, the final consolidated financial statements of the Group for FY2020 and related information may be different from that contained in this announcement. Shareholders and potential investors are advised to refer to the details of the Group's financial performance for FY2020 to be disclosed in the annual results announcement which is expected to be published by the Company by end of March 2021 in compliance with the Listing Rues.

Shareholders and potential investors should exercise caution when dealing in the securities of the Company.

By order of the Board

Kidztech Holdings Limited

Yu Huang Chairman

Shantou, 15 March 2021

As at the date of this announcement, the Board comprises Mr. Yu Huang, Mr. Pui Lik Leung Kenny and Mr. Ni Yanlong as executive Directors, Ms. Zheng Jingyun as non-executive Director, and Mr. He Weidong, Ms. Liu Man and Ms. Zhao Weiwei as independent non-executive Directors.