Neway : PROFIT WARNING SUPPLEMENTAL ANNOUNCEMENT

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.

NEWAY GROUP HOLDINGS LIMITED

中 星 集 團 控 股 有 限 公 司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 00055)

PROFIT WARNING

SUPPLEMENTAL ANNOUNCEMENT

Reference is made to the announcement of Neway Group Holdings Limited ("Company", together with its subsidiaries, the "Group") dated 13 July 2020 in relation to the profit warning of the Company ("Announcement"). Terms used herein shall have the same meanings as defined in the Announcement, unless the context requires otherwise.

The Board wishes to further inform the Shareholders and potential investors that based on the preliminary review and analysis of the unaudited consolidated management accounts of the Group currently available, the Group is expected to record a loss in the range from approximately HK$47 million to approximately HK$62 million for 1H 2020, as compared to the loss of approximately HK$6.2 million for 1H 2019. The Board considers that such significant increase in loss was primarily attributable to (i) the increase of fair value loss on held-for-trading investments recorded during 1H 2020 to approximately HK$33.8 million (1H 2019: fair value gain of approximately HK$1.9 million) and (ii) the expected net impairment losses on financial assets and contract assets of approximately HK$6.7 million recorded in 1H 2020 (1H 2019: net reversal of impairment losses on trade receivables and contract assets of approximately HK$0.5 million).

• For identification purpose only

1

The Company is still in the process of finalising the consolidated results of the Group for 1H 2020. The information contained in this announcement is only a preliminary assessment by the management of the Company based on the unaudited consolidated management accounts of the Group currently available and have not been audited or reviewed by the auditors of the Company. The finalised unaudited consolidated results of the Group for 1H 2020 are expected to be published on 28 August 2020.

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

On behalf of the Board

Neway Group Holdings Limited

Suek Ka Lun, Ernie

Chairman

Hong Kong, 14 August 2020

As at the date of this announcement, the Board comprises Mr. Suek Ka Lun, Ernie (Chairman) and Mr. Suek Chai Hong (Chief Executive Officer) being the executive Directors; Dr. Ng Wai Kwan, Mr. Chan Kwing Choi, Warren and Mr. Wong Sun Fat being the non-executive Directors; Mr. Lee Kwok Wan, Mr. Lai Sai Wo, Ricky and Mr. Chu Gun Pui being the independent non-executive Directors; and Mr. Lau Kam Cheong being the alternate Director to Dr. Ng Wai Kwan.

2