Lianhua Supermarket : ANNOUNCEMENT POSITIVE PROFIT ALERT

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(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 00980)

ANNOUNCEMENT

POSITIVE PROFIT ALERT

This announcement is made by the Company pursuant to Rule 13.09(2) of the Listing Rules and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

The Board would like to inform the Shareholders and potential investors that the Group's net profit attributable to the shareholders of the Company for the six months ended 30 June 2020 is expected to increase by approximately 30% to 50% as compared to the six months ended 30 June 2019.

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

This announcement is made by Lianhua Supermarket Holdings Co., Ltd. (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 (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

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The board of directors of the Company (the "Board") would like to inform the shareholders of the Company (the "Shareholders") and potential investors that the Group's net profit attributable to the shareholders of the Company for the six months ended 30 June 2020 is expected to increase by approximately 30% to 50% as compared to the six months ended 30 June 2019, mainly due to the increased consumers' demands for livelihood products brought by the outbreak of COVID-19.

This positive profit alert announcement is prepared only based on the information currently available to the Group and a preliminary assessment on the management accounts of the Group by the management of the Company, which has not been audited or reviewed by the Company's auditors. Shareholders and potential investors are advised to read carefully the interim results announcement of the Company in relation to the Group's results for the six months ended 30 June 2020, which is expected to be published in August 2020. There may be differences between such information and the estimated financial information set out above.

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

By order of the Board

Lianhua Supermarket Holdings Co., Ltd.

Ye Yong-ming

Chairman of the Board

Shanghai, the People's Republic of China, 27 July 2020

As at the date of this announcement, the directors of the Company are:

Executive Director:	Xu Tao;
Non-executive Directors:	Ye Yong-ming, Xu Zi-ying, Xu Hong,
	Zhang Shen-yu, Dong Xiao-chun and
	Wong Tak Hung;
Independent non-executive Directors:	Xia Da-wei, Lee Kwok Ming, Don,
	Chen Wei and Zhao Xin-sheng.

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