PYI : CREDITORS' VOLUNTARY WINDING-UP OF A SUBSIDIARY

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PYI Corporation Limited

(Incorporated in Bermuda with limited liability)

(Stock Code: 498)

CREDITORS' VOLUNTARY WINDING-UP OF A SUBSIDIARY

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

The board (the ''Board'') of directors (the ''Directors'') of the Company wishes to inform the shareholders of the Company (the ''Shareholders'') and potential investors that on 9 March 2021 (after trading hours), the sole shareholder of PYI Management Limited (''PML''), an indirect wholly-owned subsidiary of the Company, resolved that steps should be taken immediately to place PML into Creditors' Voluntary Liquidation (the ''Liquidation'').

LIQUIDATION OF A SUBSIDIARY

The Board wishes to inform the Shareholders and potential investors of the Company that on 9 March 2021 (after trading hours), the board of directors of PML resolved that:

(a) a general meeting of PML be convened at which a resolution for voluntary winding-up will be proposed; and

(b) a meeting of the creditors of PML be convened for the purposes of the Liquidation.

As the audited revenue of PML for the year ended 31 March 2020 represented more than 5% of the audited consolidated revenue of the Group for the year ended 31 March 2020, and the audited total assets of PML as at 31 March 2020 represented more than 5% of the audited consolidated total assets of the Group as at 31 March 2020, PML is considered as a major subsidiary of the Company for the purpose of Rule 13.25(2) of the Listing Rules.

INFORMATION ON PML

PML, an indirect wholly-owned subsidiary of the Company, was incorporated on 3 December 1992 with limited liability under the Hong Kong Companies Ordinance. The principal activity of PML is provision of management and financial services.

REASONS FOR THE LIQUIDATION OF PML

Based on the audited financial statements of PML for the year ended 31 March 2020, the net current liability was approximately HK$1,469.1 million whereas the net liability was approximately HK$1,618.1 million as at 31 March 2020. The total liability of PML was approximately HK$3,021.0 million as at 31 March 2020.

Based on the management accounts of PML for the ten months ended 31 January 2021, the net current liability increased by approximately 4.0% from approximately HK$1,469.1 million as at 31 March 2020 to approximately HK$1,527.6 million as at 31 January 2021. This was mainly due to increase in amount due to ultimate holding company and fellow subsidiaries. Furthermore, the net liability of PML increased to approximately HK$1,675.9 million as at 31 January 2021 from approximately HK$1,618.1 million as at 31 March 2020, representing an increase of approximately 3.6%. The increase in net liability of PML was mainly due to the increase in unaudited net loss of PML for the ten months ended 31 January 2021. The total liability of PML increased by approximately 5.9% from approximately HK$3,021.0 million as at 31 March 2020 to approximately HK$3,198.6 million as at 31 January 2021.

In view of the insolvency of PML as of 31 March 2020 and 31 January 2021, the sole shareholder of PML resolved to approve and place PML into Creditors' Voluntary Liquidation.

EFFECTS OF THE LIQUIDATION OF PML ON THE GROUP

Following the commencement of the Liquidation of PML, PML will cease to be subsidiary of the Company and will effectively be carved out from the Group. The Liquidation shall have no material adverse impact to the financial performance and operation of the existing business of the Group.

The Company will keep its Shareholders and investors informed of developments in relation to the Liquidation by way of announcement(s) as and when appropriate.

By Order of the Board PYI Corporation Limited

Lau Tom Ko Yuen

Chairman

Hong Kong, 9 March 2021

As at the date of this announcement, the Board comprises the following Directors:

Executive Directors:	Non-Executive Director:
Mr. Lau Tom Ko Yuen	Mr. Kwong Kai Sing, Benny
(Chairman)
Mr. Marc Andreas Tschirner	Independent Non-Executive Directors:
(Managing Director)	Mr. Ma Ka Ki
Mr. Au Wai June	Mr. William Nicholas Giles
Mr. Leung Chung Ki