TEM : PROFIT WARNING

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

TEM

TEM Holdings Limited 創 新 電 子 控 股 有 限 公 司*

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 8346)

PROFIT WARNING

This announcement is made by TEM Holdings Limited (the ''Company'' and together with its subsidiaries, the ''Group'') pursuant to Rule 17.10 of the Rules Governing the Listing of Securities on the Growth Enterprise Market (the ''GEM'') of The Stock Exchange of Hong Kong Limited (the ''GEM Listing Rules'') and the Inside Information Provisions (as defined under the GEM Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

The board (the ''Board'') of the directors (the ''Directors'') of the Company would like to inform the shareholders of the Company (the ''Shareholders'') and potential investors that, based on the preliminary review by the Board of the unaudited consolidated management accounts of the Group for the six months ended 31 December 2017 (the ''Period''), the Group is expected to record a loss for the Period as compared to a profit of approximately HK$1.3 million for the same period of 2016. The Board considers that the loss was primarily attributable to:

• - the drop in gross profit which was caused by shortage of supply and tight delivery of raw material from a major supplier which led to an increase in the cost of direct materials and may last until the end of March 2018. We have taken remedial actions, such as finding alternative suppliers, to mitigate the above factor; and

• - the depreciation of US dollars against Malaysian Ringgit which led to exchange losses as compared to an exchange gain for the same period of 2016.

As at the date of this announcement, the Company is still in the course of finalising its unaudited consolidated results of the Group for the Period. The information contained in this announcement is only based on a preliminary assessment by the Board with reference to the information currently available to the Company. Such information has neither been confirmed nor audited by the auditors of the Company and may be subject to change. Shareholders and potential investors of the Company shall refer to the unaudited consolidated results of the Group for the Period to be published in due course.

*

For identification purpose only

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

By order of the Board TEM Holdings Limited

Lau Man Tak Chairman and Executive Director

Hong Kong, 17 January 2018

As at the date of this announcement, the executive Directors are Mr. Lau Man Tak, Mr. Vincent Ho Pang Cheng, Mr. Kan Wai Kee and Ms. Koay Lee Chern; and the independent non-executive Directors are Mr. Lum Chor Wah Richard, Mr. Ma Yiu Ho Peter and Mr. Lee Hon Man Eric.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the ''Latest Company Announcements'' page of the GEM websitehttp://www.hkgem.comfor at least 7 days from the date of its publication and on the website of the Company athttp://ir.tem-group.com.