Vicon : SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO THE ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2020

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VICON HOLDINGS LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3878)

SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO

THE ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2020

Reference is made to the annual results announcement of Vicon Holdings Limited (the "Company", together with its subsidiaries, the "Group") for the year ended 31 March 2020 (the "2020 Results Announcement") published by the Company on 26 June 2020. Unless otherwise defined, terms used herein shall bear the same meanings as those defined in the 2020 Results Announcement.

Based on the prospectus of the Company dated 12 December 2017, the net proceeds from the share offer ("Share Offer") of the Group at the time of its listing on 22 December 2017 was approximately HK$82.7 million. The board of directors (the "Directors") of the Company would like to provide additional information on the timing of any unutilised portion of net proceeds generated from the listing in the 2020 Results Announcement as follows:

2020 RESULTS ANNOUNCEMENT - USE OF NET PROCEEDS FROM LISTING

The table below sets out the proposed application of the net proceeds from the Listing Date to 31 March 2020:

	Net Proceeds		Actual
	from Share		usage up to	Unutilised
	Offer		31 March 2020	amount
	HK$'million		HK$'million	HK$'million
Take out of surety bond	34.0	34.0	-
Purchase of machinery	17.4	17.4	-
Repayment of bank loan	14.0	14.0	-
Strengthen of design team (Note 1)	8.5	1.8	6.7
Purchase of software (Note 2)	0.5	0.1	0.4
General working capital	8.3	8.3	-
Total	82.7	75.6	7.1

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Note 1:

As at 31 March 2020, the Group has hired an assistant quantity surveyor to strengthen our in-house design team. The Group was in the process of identifying further suitable candidates for our in-house design team as the Group was in search for candidates with the necessary qualifications and experience to cope with the development of the Group.

Note 2:

As at 31 March 2020, the Group purchased several licenses for engineering software programs and the Group expects to purchase additional licenses upon the recruitment of new members of our in-house design team.

As at 31 March 2020, the actual use of net proceeds was less than estimated but had been applied in the same manner as specified in the section headed "Reasons for the listing, future plans and proposed use of net proceeds from the share offer" of the prospectus of the Company dated 12 December 2017 (the "Prospectus"). The net proceeds of approximately HK$7.1 million had not yet been utilised as at 31 March 2020 as planned, but is expected to be utilised by 31 March 2021. The Group will continue to apply the net proceeds from the listing in accordance with the allocation set out in the Prospectus.

The Group held the unutilised net proceeds mainly in short-term deposits with licensed banks in Hong Kong.

The expected timeline for utilising the remaining unutilised net proceeds is based on the best estimations of the future market conditions made by the Group. It is subject to change based on the current and future development of the market conditions.

The above supplemental information provided in this announcement does not affect other information contained in the 2020 Results Announcement and save as disclosed above, all other information in the 2020 Results Announcement remain unchanged.

By Order of the Board

VICON HOLDINGS LIMITED

CHOW Kwok Chun

Chairman

Hong Kong, 24 July 2020

As at the date of this announcement, the executive Directors are Mr . CHOW Kwok Chun, Mr. TSANG Hing Kuen, Mr. LEUNG Kim Lim and Mr. LIU Jin Fai and the independent non-executive Directors are Mr. IP Ka Ki, Professor KUANG Jun Shang and Mr. TSE Ka Ching Justin.

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