PanAsialum : Announcements and Notices - Profit Warning

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PanAsialum Holdings Company Limited

榮 陽 實 業 集 團 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 2078)

PROFIT WARNING

This announcement is made by the Company pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions under Part XIVA of the SFO.

The Board wishes to inform shareholders of the Company and potential investors that based on its preliminary assessment of current information available, the Company is expected to record an increase in loss before income tax in the consolidated financial results of the Company for the six months ended 30 June 2019 as compared to the loss before income tax for the corresponding period ended 30 June 2018.

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

This announcement is made by PanAsialum Holdings Company Limited (the "Company") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").

The board of directors of the Company (the "Board") wishes to inform shareholders of the Company (the "Shareholders") and potential investors that based on its preliminary assessment of the information currently available, the Company is expected to record an increase in loss before income tax in the consolidated financial results of the Company for the six months ended 30 June 2019 of approximately 30%, as compared to the loss before income tax of approximately HK$128 million for the corresponding period ended 30 June 2018.

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The Board believes that the said increase in the loss before income tax is primarily due to (i) higher finance cost from borrowings associated with the Group's on-going acquisitions and expansion, and (ii) an increase in operating expenses especially the increase in employee benefit expenses. The Board wishes to emphasize that the Company is still in the process of finalising its consolidated results for the six months ended 30 June 2019. The information in this announcement are estimates based on the Board's preliminary assessment of current information available to the Company which have not been audited or reviewed by the auditors of the Company and may be subject to adjustments. Shareholders and potential investors are advised to refer to the Group's interim results for the six months ended 30 June 2019 which is expected to be released in August 2019 for full details of the Group's financial performance.

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

On behalf of the Board of

PanAsialum Holdings Company Limited

Huang Gang

Chairman

Hong Kong, 13 June 2019

As at the date of this announcement, the executive directors of the Company are Dr. Huang Gang, Mr. Wong Kwok Wai Eddy and Ms. Li Jiewen; and the independent non-executive directors of the Company are Mr. Mar Selwyn, Mr. Leung Ka Tin and Dr. Cheung Wah Keung.

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