Xinchen China Power : Announcements and Notices - Profit Warning

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XINCHEN CHINA POWER HOLDINGS LIMITED

新 晨 中 國 動 力 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1148)

PROFIT WARNING

This announcement is made by the Company pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions under Part XIVA of the SFO.

The Board wishes to inform the Shareholders and potential investors that based on the preliminary review by the Group's management of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2019, the Company expects the unaudited profit attributable to its equity shareholders for such period will record a decrease of approximately 45% as compared to that for the six months ended 30 June 2018.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

This announcement is made by Xinchen China Power Holdings Limited (the "Company", 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 "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 "SFO").

The board (the "Board") of directors of the Company (the "Directors") wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that based on the preliminary review by the Group's management of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2019, the Company expects the unaudited profit attributable to its equity shareholders for such period will record a decrease of approximately 45% as compared to that for the six months ended 30 June 2018. The decrease is mainly attributable to (i) a decrease in sales of engines as the vehicle demand in China remains sluggish, in particular, in the lower-end consumers market; and (ii) a decrease in receipt of government grants.

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The Company is still in the process of finalizing the interim results of the Group for the six months ended 30 June 2019. The information contained in this announcement is only based on the preliminary assessment by the Group's management of the unaudited consolidated management accounts of the Group and information currently available, and is not based on any figures or information that have been audited or reviewed by the Company's auditors. The Company expects the unaudited interim results of the Group for the six months ended 30 June 2019 will be published in August 2019.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By the order of the Board

Xinchen China Power Holdings Limited

Wu Xiao An

(also known as Ng Siu On) Chairman

Hong Kong, 31 July 2019

As at the date of this announcement, the Board comprises two executive Directors, Mr. Wu Xiao An (also known as Mr. Ng Siu On) (Chairman) and Mr. Wang Yunxian (Chief Executive Officer); two non-executive Directors, Mr. Liu Tongfu and Mr. Yang Ming; and four independent non-executive Directors, Mr. Chi Guohua, Mr. Wang Jun, Mr. Huang Haibo and Mr. Wang Songlin.

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