Willas Array Electronics : Positive Profit Alert

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WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED

威雅利電子(集團)有限公司

(Incorporated in Bermuda with limited liability)

(Hong Kong stock code: 854)

(Singapore stock code: BDR)

POSITIVE PROFIT ALERT

This announcement is made by Willas-Array Electronics (Holdings) Limited (the "Company" and, together with its subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "HK Listing Rules") and the Inside Information Provisions (as defined in the HK Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as well as in accordance with Rule 703 of the Listing Manual of Singapore Exchange Securities Trading Limited.

The board of directors of the Company (the "Board") is pleased to inform the shareholders and potential investors of the Company that, based on the Board's preliminary assessment of the unaudited consolidated management accounts of the Group for the financial year ended March 31, 2021 ("FY2021") (the "Unaudited Management Accounts"), it is expected that the Group is likely to record a consolidated net profit of between HK$88.0 million and HK$96.0 million for FY2021 as compared to a consolidated net loss of approximately HK$72.6 million for the financial year ended March 31, 2020 ("FY2020").

The expected turnaround in consolidated results from a net loss for FY2020 to a net profit for FY2021 is mainly attributable to the following factors:

1. an increase in gross profit margin in FY2021 which was mainly attributable to a significant decrease in clearance of buffer stocks as compared to FY2020;
2. a reversal of stock provision of approximately HK$32.9 million made in FY2021, as compared to a stock provision of approximately HK$14.2 million for slow-moving inventories made in FY2020;

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1. receipt of non-recurring subsidies under the Employment Support Scheme under the Anti-epidemic Fund launched by the Hong Kong Special Administrative Region Government and the reduction and exemption of corporate social insurance premiums granted by the Chinese government as part of their COVID-19 relief measures in FY2021; and
2. an exchange gain of approximately HK$15.7 million mainly arising from the appreciation of the Renminbi in FY2021, as compared to an exchange loss of approximately HK$14.5 million mainly arising from the depreciation of the Renminbi in FY2020.

The Company is in the process of preparing and finalising the Group's results for FY2021. The information contained in this announcement is solely based on the information currently available to the Board and the Board's preliminary assessment of the Unaudited Management Accounts, which has neither been reviewed or finalised by the audit committee of the Company, nor reviewed or audited by the external auditors of the Company. Details of the audited full year financial results of the Group for FY2021 (the "Annual Results") is expected to be published in end-May 2021. Shareholders are advised to read the Company's announcement of the Annual Results in detail once it is available.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company and, in case of doubt, to seek independent advice from professional or financial advisers.

By Order of the Board

Willas-Array Electronics (Holdings) Limited

Leung Chun Wah

Chairman and Non-executive Director

Hong Kong/Singapore, April 16, 2021

As at the date of this announcement, the Board comprises one Non -executive Director, Leung Chun Wah (Chairman); three Executive Directors, namely Hon Kar Chun (Managing Director), Leung Hon Shing and Leung Chi Hang Daniel; and three Independent Non-executive Directors, namely Wong Kwan Seng, Robert, Iu Po Chan, Eugene and Lim Lee Meng.

In the case of inconsistency, the English text of this announcement shall prevail over the Chinese text.

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