Changsha Broad Homes Industrial : PROFIT WARNING SUPPLEMENTAL ANNOUNCEMENT

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Changsha Broad Homes Industrial Group Co., Ltd.

長沙遠大住宅工業集團股份有限公司

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 2163)

PROFIT WARNING

SUPPLEMENTAL ANNOUNCEMENT

This announcement is made by Changsha Broad Homes Industrial Group Co., Ltd. (the "Company" and, together with its subsidiaries, 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 in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the announcement of the Company dated July 22, 2020 in relation to the profit warning of the Company (the "Announcement"). Unless the context otherwise requires, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

The Board hereby further informs the Shareholders and potential investors that, based on the preliminary assessment made by the management of the Company on the unaudited consolidated management accounts of the Group (the "Management Accounts") for the six months ended June 30, 2020 (the "Period") and the information currently available to the Group, the Group is expected to record a loss of approximately RMB10 million to RMB35 million for the Period. The reasons for which the Group would have recorded a loss for the Period have been disclosed in the Announcement.

The information contained in this announcement is based solely on the preliminary assessment made by the management of the Company on the Management Accounts for the Period and the information currently available to the Group, which has neither been implemented nor been audited by the auditors of the Company or reviewed by the audit committee of the Board. As at the date of this announcement, the Company is still in the course of preparing and finalizing the interim results of the Group for the Period (the "Interim Results"). Therefore, the actual Interim Results of the Group may differ from those disclosed in this announcement. Further details regarding the Interim Results of the Group will be disclosed in the Interim Results announcement to be released on or before August 31, 2020. Shareholders and potential investors are advised to read carefully the Interim Results announcement released by the Company at that time.

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Shareholders and potential investors of the Company should exercise caution when dealing in the shares of the Company.

On behalf of the Board of Directors

Changsha Broad Homes Industrial Group Co., Ltd.

Zhang Jian

Chairman

Changsha, July 27, 2020

As at the date of this announcement, the Board comprises Mr. Zhang Jian, Ms. Tang Fen, Ms. Shi Donghong, Mr. Zhang Kexiang and Mr. Tan Xinming as Executive Directors; Mr. Zhang Quanxun and Ms. Hu Keman as non-Executive Directors; and Mr. Chen Gongrong, Mr. Li Zhengnong, Mr. Wong Kai Yan Thomas and Mr. Zhao Zhengting as independent non-Executive Directors.

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