Sandmartin International : PROFIT ALERT

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: 482)

PROFIT ALERT

This announcement is made by Sandmartin International Holdings Limited (the "Company" and together with its subsidiaries, collectively the "Group") pursuant to Rule 13.09(2)(a) 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).

The board (the "Board") of directors of the Company wishes to inform the shareholders of the Company and potential investors that after preliminary review by the Company's management of the unaudited consolidated management accounts of the Group, the Group is expected to record a reduction of not less than 90% in its consolidated net loss for the year ended 31 December 2020 when comparing with the corresponding period in 2019.

The expected consolidated net loss for the year ended 31 December 2020 is primarily attributable to the postponement of delivery of the Group's products to its customers due to the outbreak of novel coronavirus pandemic and the lockdown of certain cities in the North America and South Asia. The substantial decrease in expected consolidated net loss for the year ended 31 December 2020 is mainly attributable to the absence of the provision on expected credit loss on loan receivables due from former subsidiaries of the Company amounting to approximately HK$429 million when comparing with the corresponding period in 2019.

The Company is still in the process of finalizing the Group's annual results for the year ended 31

December 2020. The information contained in this announcement is only based on the preliminary assessment by the Board on the unaudited consolidated management accounts of the Group, which have not been audited by the auditors of the Company, nor reviewed by the audit committee of the Company. The audited consolidated annual results of the Group for the year ended 31 December 2020 may be subject to further adjustment(s) and may be different from the information contained in this announcement. The annual results for the year ended 31 December 2020 of the Group is expected to be published before the end of March 2021.

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

By order of the Board

Sandmartin International Holdings Limited

Lau Yau Cheung

Chairman

Hong Kong, 8 March 2021

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

Executive Directors

Mr. Hung Tsung Chin and Mr. Chen Wei Chun

Non-Executive Director

Mr. Kuo Jen Hao

Independent Non-Executive Directors

Mr. Lau Yau Cheung (Chairman), Mr. Li Chak Hung and Mr. Wu Chia Ming

* For identification purpose only