Heng Tai Consumables : FURTHER EXTENSION OF TIME FOR UTILISATION OF THE UNUSED PROCEEDS FROM THE RIGHTS ISSUE

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HENG TAI CONSUMABLES GROUP LIMITED

亨泰消費品集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 00197)

FURTHER EXTENSION OF TIME FOR UTILISATION OF

THE UNUSED PROCEEDS FROM THE RIGHTS ISSUE

Reference is made to the Prospectus and the announcements dated 13 February 2018, 9 March 2018, 8 March 2019 and 31 December 2019 (the "Proceeds Announcements") in relation to the use of proceeds of the Rights Issue. Unless otherwise specified, capitalized terms used herein shall have the same meanings as those defined in the Proceeds Announcements.

As summarised and explained in the Proceeds Announcements, the net proceeds of about HK$207.3 million from the Rights Issue have been earmarked for the Brokerage Business for compliance with its financial resources and for future expansion purpose such as the further development of its margin clients business by 10 March 2018, which was subsequently extended to 10 March 2020. HK$20 million has already been used as intended and has been injected into the Brokerage Business. Currently, the Unused Proceeds comprise about HK$187.3 million of the remaining proceeds from the Rights Issue.

In view of the novel coronavirus (COVID-19) epidemic which has been spreading globally causing widespread market and community disruptions and may also contribute to the volatilities in the global and Hong Kong financial markets in the meantime, the Company considers it should continue taking its prudent approach so that the Company would not unnecessarily risk incurring loss that may be caused by expanding on the margin clients business in this uncertain and volatile securities market.

Therefore, the Company has decided to further extend the original intended use of the Unused Proceeds for another twelve months to 10 March 2021.

By order of the Board

Heng Tai Consumables Group Limited

Lam Kwok Hing

Chairman

Hong Kong, 10 March 2020

As at the date of this announcement, the Board comprises four executive directors, namely Mr. Lam Kwok Hing (Chairman), Ms. Lee Choi Lin, Joecy, Ms. Gao Qin Jian and Mr. Chan Cheuk Yu, Stephen; and three independent non-executive directors, namely Ms. Mak Yun Chu, Mr. Poon Yiu Cheung, Newman and Mr. Hung Hing Man.