Glory Flame : ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

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.

GLORY FLAME HOLDINGS LIMITED ಃ۾છٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 8059)

ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange 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.

This announcement, for which the directors (the "Directors") of Glory Flame Holdings Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

FINANCIAL HIGHLIGHTS

For the year ended 31 December 2021, the operating results of the Group were as follows:

• • Revenue amounted to approximately HK$99.0 million (2020: approximately HK$80.9 million), representing an increase of approximately 22.4% from last year;

• • Net loss for the year ended 31 December 2021 amounted to approximately HK$37.2 million (2020: net loss of approximately HK$16.2 million);

• • Basic and diluted loss per share for the year ended 31 December 2021 based on weighted average number of ordinary shares was approximately HK3.65 cents (2020: Basic and diluted loss per share of approximately HK1.51 cents);

• • The Directors do not recommend the payment of a final dividend for the year ended 31

  December 2021 (2020: Nil).

ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

The board (the "Board") of directors (the "Directors") of the Company is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively referred to as

the "Group") for the year ended 31 December 2021 together with the comparative figures for the preceding financial year as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2021

2021	2020
Notes	HK$'000	HK$'000
Revenue	3	98,970	80,876
Cost of sales	(74,324)	(57,531)
Gross profit	24,646	23,345
Interest revenue	5	10
Other income and other gains or losses, net	1,906	5,363
Impairment losses on various assets	(21,881)	(674)
Administrative and other operating expenses	(36,275)	(38,890)
Operating loss	(31,599)	(10,846)
Finance costs	5	(5,847)	(5,156)
Loss before income tax	(37,446)	(16,002)
Income tax credit/(expenses)	6	262	(185)
Loss for the year	7	(37,184)	(16,187)
Other comprehensive income:
Items that may be reclassified to profit or loss:
Exchange differences on translating foreign operations	481	1,170
Foreign currency translation reserve classified
to profit or loss upon disposal/deregistration
of subsidiaries	250	(1)
Total other comprehensive income for the year	731	1,169
Total comprehensive loss for the year	(36,453)	(15,018)

2021	2020
Notes	HK$'000	HK$'000
Loss for the year attributable to:
Owners of the Company	(36,846)	(15,250)
Non-controlling interests	(338)	(937)
(37,184)	(16,187)
Total comprehensive loss for
the year attributable to:
Owners of the Company	(36,040)	(13,927)
Non-controlling interests	(413)	(1,091)
(36,453)	(15,018)
Loss per share	9
Basic (HK cents per share)	(3.65)	(1.51)
Diluted (HK cents per share)	(3.65)	(1.51)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 December 2021

2021	2020
Notes	HK$'000	HK$'000
Non-current assets
Property, plant and equipment	14,311	18,211
Right-of-use assets	10,717	11,290
Goodwill	938	938
25,966	30,439
Current assets
Inventories	3,140	4,547
Trade and other receivables	10	50,546	71,809
Bank and cash balances	11	37,127	37,250
90,813	113,606
Current liabilities
Trade and other payables	12	36,524	26,956
Borrowings	45,800	64,250
Lease liabilities	3,425	3,027
Tax liabilities	471	268
86,220	94,501
Net current assets	4,593	19,105
Total assets less current liabilities	30,559	49,544
Non-current liabilities
Borrowings	18,450	-
Lease liabilities	8,341	9,039
Deferred tax liabilities	369	653
27,160	9,692
NET ASSETS	3,399	39,852