Heng Tai Consumables : SUPPLEMENTAL PROFIT WARNING ANNOUNCEMENT

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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)

SUPPLEMENTAL PROFIT WARNING ANNOUNCEMENT

Reference is made to the profit warning announcement of the Company dated 4 September 2020 (the "Announcement"). Unless the context otherwise requires, capitalized words used in this announcement has the same meanings as set out in the Announcement.

As disclosed in the Announcement, the Board informed the Shareholders and potential investors that, based on information then available, the unaudited 2019/20 Annual Results are expected to record a decrease in revenue of about 35% and an increase in loss from operations as compared to the previous corresponding financial period.

As set out in the Announcement, further and as a result of the poor performing industry as a whole and taking into account that there is currently no concrete evidence that the coronavirus pandemic and the effects it has caused to the global community as a whole will be resolved in the short to medium term, the Board therefore concludes that a significant impairment will have to be made to the assets and receivables of our Group's two business segments mostly affected by the pandemic, namely our FMCG and agri-products segments. As the Board was still finalizing the 2019/20 Annual Results during that time and given the uncertain market conditions, the Board was unable to determine with reasonable confidence the impairment loss that would have to be made, although the Board was aware that the final amount to be made would be significant given the adverse impact that have already been made on the global and local market and are continuing.

As at the date of this announcement, the Board has assessed the impairment loss to be made would be approximately HK$210 million, and the result of which will impact materially to our financial position, and together with all other factors, will likely cause an increase in loss from operations of approximately 10% as compared to the previous corresponding financial period. However, these figures are still subject to assessment and final determination and may not accurately reflect the final audited figures to be set out in the 2019/20 Annual Results.

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As the Company is still in the process of finalizing the 2019/20 Annual Results, this supplemental profit warning announcement is only based on preliminary assessment by the Board in accordance with the information currently available and the latest consolidated management accounts of the Group, which are subject to finalization and are not based on any figures or information reviewed or audited by the Company's auditors. Shareholders and potential investors should read the 2019/20 Annual Results announcement carefully, which is expected to be published before end of September 2020.

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

On behalf of the Board

Heng Tai Consumables Group Limited

Lam Kwok Hing

Chairman

Hong Kong, 10 September 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.

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