The board of directors of Prosperous Printing Company Limited announced that, due to challenging business environment and as a measure to optimize cost structure, the Company's production site in Shenzhen (the "Shenzhen Factory") has discontinued production with effect from the date of this announcement until further notice, which would significantly reduce the Company's fixed overhead costs in order to improve its cashflow. The Company has arranged for Hong Kong Factory and/or external sub-contractors to process orders which are being handled by the Shenzhen Factory. The Company intends to dispose of machinery to settle outstanding payment such as Shenzhen Factory staff's salary, social security fund and housing provident fund.

The operation of Company's production site in Hong Kong ("Hong Kong Factory") remains normal. The Hong Kong Factory will continue production.