China Strategic : SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO POSITIVE PROFIT ALERT

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SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO

POSITIVE PROFIT ALERT

This announcement is made by China Strategic Holdings Limited (the "Company", and together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the Company's announcement dated 22 July 2020 (the "First Announcement") in relation to the positive profit alert for the Group's interim results for the six months ended 30 June 2020. The Board of Directors (the "Board") of the Company wishes to provide further information in relation to the First Announcement. Based on a review of the unaudited management accounts of the Group, the Company expects to record a profit for the six months ended 30 June 2020 of not less than HK$40 million as compared with the loss of approximately HK$139.5 million recorded for the six months ended 30 June 2019. The estimated profit for the six months ended 30 June 2020 may be adjusted subject to the amount of expected credit loss to be provided for the Group's loan and interest receivables which is in the course of being finalised.

The Company is in the process of finalising the interim results of the Group for the six months ended 30 June 2020. The information contained in this announcement is only based on an assessment by the Board according to the unaudited management accounts of the Group for the six months ended 30 June 2020 which have not been confirmed or reviewed by the Company's auditor.

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Further details of the Group's financial results and performance will be disclosed in the interim results announcement of the Company for the six months ended 30 June 2020 which is expected to be announced before the end of August 2020.

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

By Order of the Board

China Strategic Holdings Limited

Dr. Or Ching Fai

Chairman

Hong Kong, 28 July 2020

At the date of this announcement, the Board comprises one Non-executive Director, namely Dr. Or Ching Fai (Chairman); three Executive Directors, namely Mr. Sue Ka Lok (Chief Executive Officer), Ms. Lee Chun Yeung, Catherine and Mr. Chow Kam Wah; and three Independent Non-executive Directors, namely Ms. Ma Yin Fan, Mr. Chow Yu Chun, Alexander and Mr. Leung Hoi Ying.

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