CWT International : Announcements and Notices - Profit Warning for the Six Month Ended 30 June 2018

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CWT INTERNATIONAL LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code: 521)

PROFIT WARNING

FOR THE SIX MONTH ENDED 30 JUNE 2018

This announcement is made by CWT International Limited (the "Company" and together with its subsidiaries, 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 (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company (the "Board") wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that, based on the preliminary assessment of the currently available unaudited consolidated management accounts of the Group for the six months ended 30 June 2018, it is anticipated that the Group will record a loss attributable to owners of the Company in the range of approximately HK$500 million to HK$600 million for the six months ended 30 June 2018 as compared to a profit attributable to owners of the Company of approximately HK$67 million recorded for the corresponding period in 2017, which was mainly attributable to a gain on disposal of a business of the Group.

The above-mentioned expected loss attributable to owners of the Company is mainly attributable to revaluation losses on investment properties of the Group; financing expenses and additional depreciation and amortisation charges incurred in relation to the Company's acquisition of CWT Pte. Limited and its subsidiaries in the prior year; and loss on foreign exchange, which offset the additional profits contribution to owners of the Company from CWT Pte. Limited during the six months ended 30 June 2018 (which the Company did not have during the same period last year).

The information contained in this announcement is only based on the Company's preliminary review of the unaudited consolidated management accounts of the Group, which have not been reviewed nor confirmed by the Company's auditor or audit committee and may be subject to adjustments. Shareholders and potential investors are advised to refer to the details of the Company's results announcement for the six months ended 30 June 2018 which is expected to be announced by the end of August 2018.

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

By order of the Board

CWT INTERNATIONAL LIMITED

Xu Haohao

Executive Director

Hong Kong, 25 July 2018

As at the date of this announcement, the Board comprises Mr. Guo Ke (Executive Director and Co-Chairman), Mr. Xu Haohao (Executive Director and Co-Chairman), Mr. Ding Lei (Executive Director and Chief Executive Officer), Mr. Zhao Quan (Executive Director), Mr. Leung Shun Sang, Tony (Non-executive Director), Mr. Mung Bun Man, Alan (Non-executive Director), Mr. Leung Kai Cheung (Independent Non-executive Director), Mr. Liem Chi Kit, Kevin (Independent Non-executive Director) and Mr. Lam Kin Fung, Jeffrey (Independent Non-executive Director).