AUX International : INSIDE INFORMATION - NON-RENEWAL OF TENANCY AGREEMENT AND CLOSURE OF MAGNUM CLU

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 the Cayman Islands with limited liability)

(Stock Code: 2080)

INSIDE INFORMATION

NON-RENEWAL OF TENANCY AGREEMENT AND

CLOSURE OF MAGNUM CLUB

This announcement is made by AUX International Holdings Limited (the "Company", and together with its subsidiaries as 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 of the Laws of Hong Kong).

As per notification from the landlord (the "Landlord") of the properties where Magnum is operated, i.e. the properties situated at 3/F, 4/F & Flat Roof, Silver Fortune Plaza, 1 Wellington Street, Central, Hong Kong (the "Leased Premises"), on 24 May 2019 and subsequent communications with the Landlord, the board (the "Board") of directors (the "Directors") of the Company understands that the Landlord does not intend to renew the tenancy agreement in respect of the Leased Premises (the "Tenancy Agreement"), which is due to expire on 19 August 2019. The Board will have further negotiations with the Landlord on the reinstatement arrangements, if any, with a view to delivering vacant possession of the Leased Premises to the Landlord by 19 August 2019.

Notwithstanding the closure of Magnum Club, the Group will strive to maintain its status as a leading entertainment service and venue provider in Hong Kong. The Group will continue providing services of high quality to the target customers through Zentral, the other club currently operated by the Group, and developing its relationships with event organisers to ensure that Zentral will remain the venue of choice for hosting private parties, corporate events, live entertainment, fashion shows and filming activities, among others. In addition, the Group has been seeking to diversify its business portfolio and the entertainment services it could offer. To this end, as disclosed in the announcement of the Company dated 30 April 2019, the Group had recently acquired the entire equity interest

- 1 -

in a group of companies principally engaged in the operation of three restaurant and bar outlets under the brand of "Mini Club" in Causeway Bay, Tsim Sha Tsui and Mong Kok respectively. Apart from that, the Group will continue its quest for opportunities to expand and improve its business, including among others the clubbing, bar and restaurant business segment, and its performance in the future.

The Board wishes to state that this announcement is made on the basis of the information currently available to the Board and a preliminary assessment in respect thereof only. In particular, the Board is still working with the auditors of the Group to assess the impacts the non-renewal of the Tenancy Agreement and the closure of Magnum Club may have on the Group under the applicable accounting principles, and the exact accounting impacts, such as the amount of impairment loss on the relevant assets that may need to be recorded (if any), have yet to be determined by the auditors of the Group. Further announcement(s) in respect of the above incidents may be made by the Company as and when appropriate. Details of the above incidents and their impacts on the financial performance of the Group for the year ended 31 March 2019, if any, may be disclosed in the annual results announcement of the Company, which is expected to be published in June 2019.

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

By order of the Board

AUX International Holdings Limited

Zhang Jingguo

Chairman

Hong Kong, 27 May 2019

As at the date of this announcement, the executive Directors are Mr. Zhang Jingguo, Mr. Zheng Jiang, Mr. Chan Hon Ki and Ms. Shen Guoying; and the independent non- executive Directors are Mr. Poon Chiu Kwok, Mr. Bau Siu Fung and Ms. Lou Aidong.

- 2 -