The board of directors of Vestate Group Holdings Limited to inform the shareholders of the Company and potential investors that based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 September 2017, the Group is expected to record an increase in loss for the six months ended 30 September 2017 as compared to the loss recorded for the corresponding period last year (the "Profit Warning"). The Board believes that such increase in loss is mainly attributable to overall decline in sales in Hong Kong and the People's Republic of China resulting from the restructuring in store network and reduction in the number of stores. The Company is still in the process of finalising the interim results of the Group for the six months ended 30 September 2017. The information contained in this announcement is only based on the preliminary assessment by the Board with reference to the management accounts and raw financial information of the Group, which have not been reviewed by the Company's auditors. Details of the Group's performance for the six months ended 30 September 2017 will be finalised and disclosed in its interim results announcement to be published by the end of November 2017.