AVIC International HK : 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.

(Incorporated in Bermuda with limited liability)

(Stock Code: 232)

PROFIT WARNING

This announcement made by AVIC International Holding (HK) 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 board (the "Board") of directors of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that based on the information currently available to the Company and the preliminary review of the unaudited consolidated management accounts of the Group, the Company is expected to record a loss before tax of not less than HK$800 million (2019: loss before tax of approximately HK$84 million) for the year ended 31 December 2020 which was mainly because the performance of the general aviation aircraft piston engine business became worse as a result of the coronavirus disease 2019 pandemic and the deteriorated economic environment and significant impairment of goodwill and other intangible assets was recorded.

The Company is still in the course of preparing and finalising the consolidated results of the Group for the year ended 31 December 2020. The information contained in this announcement is based on the information currently available to the Company and the preliminary assessment of the management accounts of the Group for the year ended 31 December 2020, which has not been audited nor reviewed by the Company's auditors or the audit committee of the Company and may subject to adjustments. The overall results of the Group for the year ended 31 December 2020 will only be ascertained when all the relevant results and accounting treatments are finalised.

The Shareholders and potential investors are advised to read carefully the results announcement of the Company for the year ended 31 December 2020, which is expected to be published on 31 March 2021.

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

By order of the Board of

AVIC International Holding (HK) Limited

Lai Weixuan

Chairman

Hong Kong, 25 March 2021

As at the date of this announcement, the Board comprises Mr. Lai Weixuan, Mr. Huang Yongfeng, Mr. Zhang Zhibiao, Mr. Yu Xiaodong and Mr. Zhao Yang as executive Directors; Mr. Chow Wai Kam as non-executive Director; Mr. Chu Yu Lin, David, Mr. Li Ka Fai, David and Mr. Zhang Ping as independent non-executive Directors.