Fraser : ANNOUNCEMENT OF FIRST QUARTERLY RESULTS FOR THE THREE MONTHS ENDED 31 JULY 2017

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 however arising from or in reliance upon the whole or any part of the contents of this announcement.

FRASER HOLDINGS LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8366)

ANNOUNCEMENT OF FIRST QUARTERLY RESULTS FOR THE THREE MONTHS ENDED 31 JULY 2017

CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.

Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

This announcement, for which the directors (the "Director(s)") of Fraser Holdings Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

FINANCIAL HIGHLIGHTS

• Revenue amounted to approximately HK$20.1 million for the three months ended 31 July 2017 (the "Reporting Period") (2016: approximately HK$30.5 million), representing a decrease of approximately 34.1% as compared with the corresponding period of last year.

• Loss attributable to the owners of the Company for the three months ended 31 July 2017 amounted to approximately HK$0.7 million (2016: Profit amounted to approximately HK$1.9 million).

• Basic loss per share amounted to approximately HK$0.515 cents for the three months ended 31 July 2017 (2016: Basic earnings per share approximately HK$0.129 cents).

• The Board does not recommend the payment of dividend for the three months ended 31 July 2017 (2016: nil).

The board (the "Board") of Directors of the Company is pleased to present the unaudited condensed consolidated financial results of the Company and its subsidiaries (collectively the "Group") for the three months ended 31 July 2017 together with the comparative figures for the prior period in 2016.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED 31 JULY 2017

For the three months ended 31 July
2017	2016
Notes	HK$'000	HK$'000
(Unaudited)	(Unaudited)
Revenue	3	20,143	30,471
Direct costs	(18,552)	(28,187)
Gross profit	1,591	2,284
Other income	3	33	1,281
Administrative expenses	(2,152)	(1,270)
Finance costs	4	(3)	(3)
(Loss) Profit before income tax	6	(531)	2,292
Income tax expense	5	(210)	(436)
(Loss) Profit for the period	(741)	1,856
Other comprehensive (loss) income for the period, net of tax
Items that may be reclassified
subsequently to profit or loss:
Fair value gain of
Available-for-sale financial assets	-	788
Total comprehensive (loss) income for the period attributable to the owners of the Company	(741)	2,644
HK cents	HK cents
(Loss) Earnings per share
- Basic and diluted	8	(0.515)	0.129

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

FOR THE THREE MONTHS ENDED 31 JULY 2017

Share capital

Share premium*

Merger reserve*

Available- for-sale financial

assets investment revaluation

reserve*

Retained

earnings* Total

HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000

(Note)

At 1 May 2016 14,400 24,457 18,001 - 22,271 79,129

Available-for-sale

- Fair value gain

credited to equity - - - 788 - 788

Profit and total comprehensive

income for the period - - - - 1,856 1,856

Total comprehensive income	-	-	-	788	1,856	2,644
At 31 July 2016 (unaudited)	14,400	24,457	18,001	788	24,127	81,773
At 1 May 2017 Loss and total comprehensive	14,400	24,457	18,001	-	26,838	83,696

income for the period - - - - (741) (741)

At 31 July 2017 (unaudited) 14,400 24,457 18,001 - 26,097 82,955

* The total of these balances represents "Reserves" in the condensed consolidated statement of financial position.

Note: Merger reserve represents the difference between the share capital issued by the Company for acquisition of the subsidiaries pursuant to a reorganisation for the listing and the aggregate capital of the subsidiaries being acquired at the time of the reorganisation.