Dragon Rise : SUPPLEMENTAL ANNOUNCEMENT TO THE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2019 AND THE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2020

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Dragon Rise Group Holdings Limited

龍 昇 集 團 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 6829)

SUPPLEMENTAL ANNOUNCEMENT TO THE ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2019

AND

THE ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2020

Reference is made to the annual report for the year ended 31 March 2019 (the "2019 Annual Report") and the annual report for the year ended 31 March 2020 (the "2020 Annual Report") of Dragon Rise Group Holdings Limited (the "Company", and its subsidiaries, the "Group") published on 17 July 2019 and 14 July 2020, respectively. Unless otherwise defined or the context otherwise requires, capitalised terms used herein shall bear the same meanings as those defined in the 2019 Annual Report and the 2020 Annual Report.

USE OF PROCEEDS

As disclosed in the 2019 Annual Report and the 2020 Annual Report, the net proceeds received by the Group, after deducting related expenses, were HK$91.9 million, and the balance of unutilised net proceeds amounted to approximately HK$22.8 million and HK$2.5 million as at the date of the 2019 Annual Report and the 2020 Annual Report, respectively. In addition to the information disclosed under the paragraph headed "Management Discussion and Analysis - Use of Proceeds" in the 2019 Annual Report and the 2020 Annual Report, respectively, the Board would like to provide further information regarding the actual and

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expected timeline for utilising the remaining balance of the proceeds from the Share Offer, details of which are set out as follows:

				Balance			Balance	Actual and
				of the			of the	expected timeline
				unutilised			unutilised	of full utilisation
			amount as at		amount as at	of the remaining
	Net proceeds		the date of			the date of	proceeds from the
		from the		the 2019	Utilised		the 2020	Share Offer as at
	Share Offer		Annual	during the		Annual	31 March 2020
		(Note 1)		Report	year 2020		Report	(Note 2)
		HK$ million		HK$ million	HK$ million		HK$ million
Enhance our	60.3	7.3		7.3		-	Fully utilised as of
construction machinery										31 March 2020
Expand our labour force	19.3	12.6		12.6		-	Fully utilised as of
										31 March 2020
Reinforce our sales & marketing	4.7	2.9		0.4	2.5		Expect to be fully
										utilised by
										31 December 2021
General working capital	7.6		-	-		-	Fully utilised as of
										31 March 2020
Total	91.9	22.8		20.3	2.5

Notes:

1. The net proceeds from the Share Offer amounted to HK$91.9 million (after deducting related expenses). Such net proceeds are intended to be applied in accordance with the proposed application as disclosed in the Prospectus.
2. The expected timeline for utilising the remaining proceeds is made based on the best estimation of the Company taking into account, among others, prevailing and future market conditions and business developments and need, and therefore is subject to change.

During the year ended 31 March 2020, the actual application for the net proceeds from the Share Offer were used and expected to be used according to the intentions previously disclosed in the Prospectus and there was no material change in the use of proceeds. The unutilised amount is expected to be used in accordance with the Company's plan as disclosed in the Prospectus. Given the impacts of the social events occurred in Hong Kong since about July 2019 and the outbreak of the novel coronavirus (COVID-19) since January 2020 on the economy, the Company was concerned about the promotional effectiveness of sponsoring business events and charity functions organised by our customers when people in Hong Kong were recommended to stay at home and reduce gathering. The Company will continue to evaluate and adopt a prudent and flexible approach for utilising the net proceeds effectively

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and efficiently for the long-term benefit and development of the Group. The expected timeline of full utilisation is based on the Directors' best estimation barring unforeseen circumstances, and would be subject to change based on the future development of market conditions.

Should there be any material change in the intended use of the net proceeds from the Share Offer as described in the Prospectus, the Company will make appropriate announcement(s) in due course.

The above additional information does not affect any other information contained in the 2019 Annual Report and the 2020 Annual Report. Save as disclosed in this announcement, the content of the 2019 Annual Report and the 2020 Annual Report remain unchanged.

By order of the Board

Dragon Rise Group Holdings Limited

Yip Yuk Kit

Chairman and Executive Director

Hong Kong, 21 August 2020

As at the date of this announcement, the Board comprises Mr. Yip Yuk Kit and Mr. Cheung Chun Fai as executive Directors; and Mr. Lo Chi Wang, Mr. Chan Ka Yu, Mr. Lee Kwok Lun and Mr. Chan Wa Shing as independent non-executive Directors.

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