Daisho Microline : SUPPLEMENTAL ANNOUNCEMENT APPOINTMENT OF EXECUTIVE DIRECTOR

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.

DAISHO MICROLINE HOLDINGS LIMITED

(Incorporated in Bermuda with limited liability)

(Stock Code: 0567)

SUPPLEMENTAL ANNOUNCEMENT

APPOINTMENT OF EXECUTIVE DIRECTOR

Reference is made to the announcement of Daisho Microline Holdings Limited (the "Company") dated 3 September 2020 (the "Announcement") relating to the appointment of Mr. Wong Siu Hung, Patrick ("Mr. Wong") as the executive director (the "Director") of the Company. Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

The nomination committee (the "Nomination Committee") of the Company and the Board have reviewed and assessed the Censure and consider that notwithstanding the Censure, Mr. Wong is still suitable to act as a Director under Rules 3.08 and 3.09 of the Listing Rules, for the reasons set out below.

1. as disclosed in the Announcement, Mr. Wong has extensive experience in banking, finance, commodity trading and project development. The Board considers that Mr. Wong would be a valuable addition to the Board and his experience can bring valuable insight and contribution to the Company and/or the Group;
2. each of the Nomination Committee and the Board has reviewed the regulatory announcement (the "Regulatory Announcement") of the Stock Exchange dated 26 May 2014 in relation to the Censure. Based on the information contained in the Regulatory Announcement, there is nothing which implicates that the incident (the "Incident") which led to the Censure involved any dishonest or fraudulent conduct of Mr. Wong, nor any integrity issue of Mr. Wong;
3. the Incident occurred more than five (5) years ago. As at the date of this announcement, Mr. Wong does not hold any position at Titan Petrochemicals;
4. Mr. Wong has been acting as director of public companies for over 10 years, the Censure was the first time Mr. Wong was being found in breach of the Listing Rules. He has no previous record of other breaches of the Listing Rules; and

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1. Mr. Wong has undergone and completed the Training on, among others, Listing Rules compliance, director's duties and corporate governance matters in accordance with the direction of the Listing Committee as disclosed in the announcement of Titan Petrochemicals dated 23 July 2014. Mr. Wong further confirmed that he has completed the required Training and is equipped with an enhanced and refreshed knowledge on the Listing Rules.

On the above basis, each of the Nomination Committee and the Board are of the view that notwithstanding the Censure, Mr. Wong has the character, experience and integrity and is able to demonstrate a standard of competence and meet the required levels of skill, care and diligence to discharge his fiduciary duties as Director as required under Rules 3.08 and 3.09 of the Listing Rules.

By Order of the Board

Daisho Microline Holdings Limited

CHEUNG Lai Ming

Chairman

Hong Kong, 9 September 2020

As at the date of this announcement, the Board consists of three executive Directors, namely, CHEUNG Lai Ming, LEE Man Kwong and WONG Siu Hung, Patrick, a non-executive Director, namely, YAU Pak Yue and three independent non-executive Directors, namely, LEUNG King Fai, CHOU Yuk Yan and CHAN Yau Ching, Bob.

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