CWT International : Announcements and Notices - Profit Warning for the Year Ended 31 December 2018

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CWT INTERNATIONAL LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code: 521)

PROFIT WARNING

FOR THE YEAR ENDED 31 DECEMBER 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 and other information currently available for the year ended 31 December 2018, it is anticipated that the Group will record a consolidated net loss attributable to owners of the Company for the year ended 31 December 2018 as compared to a consolidated net profit attributable to owners of the Company of approximately HK$204.5 million for the year ended 31 December 2017.

The Board understands that, in addition to the unaudited consolidated loss attributable to owners of the Company of approximately HK$556.5 million incurred for the six months ended 30 June 2018, further losses were incurred during the six months ended 31 December 2018. The additional net loss incurred for the second half of 2018 is mainly due to additional revaluation losses on investment properties of the Group resulting from continuing unfavourable market conditions in the countries where the investment properties are located; and the Group continues to incur financing and refinancing expenses and depreciation and amortisation charges in relation to the Company's acquisition of CWT Pte. Limited ("CWT SG") and its subsidiaries in 2017; which offset the profits contribution to owners of the Company from CWT SG and the deferred tax credit arisen from the reversal of temporary differences in relation to certain assets that were sold during the 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 for the year ended 31 December 2018, which have not been audited or confirmed by the Company's auditor nor reviewed by the Company's audit committee and may be subject to adjustments. Shareholders and potential investors of the Company are advised to refer to the details of the Company's results announcement for the year ended 31 December 2018 which is expected to be announced by the end of March 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

CWT INTERNATIONAL LIMITED

Xu Haohao

Executive Director

Hong Kong, 16 January 2019

As at the date of this announcement, the Board comprises Mr. Guo Ke (Executive Director and Co-Chairman), Mr. Xu Haohao (Executive Director, Co-Chairman and Chief Executive Officer),

Mr. Zhao Quan (Executive Director), Mr. Ding Lei (Executive Director), Mr. Mung Bun Man, Alan (Non-executive Director), Mr. Leung Shun Sang, Tony (Independent Non-executive Director),

Mr. Liem Chi Kit, Kevin (Independent Non-executive Director) and Mr. Lam Kin Fung, Jeffrey (Independent Non-executive Director).