Guoan International : Further Supplemental Announcement to Annual Reports and Interim Reports and Additional Information on the Usage of the Proceeds from the Rights Issue in 2017

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.

Guoan International Limited

國安國 際 有限 公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 143)

FURTHER SUPPLEMENTAL ANNOUNCEMENT TO ANNUAL REPORTS,

INTERIM REPORTS AND

ADDITIONAL INFORMATION ON THE USAGE OF THE PROCEEDS

FROM THE RIGHTS ISSUE IN 2017

Reference is made to the prospectus of rights issue (the "Prospectus") of Guoan International Limited (the "Company") dated 12 April 2017, the Company's annual report for the fifteen months ended 31 December 2017, interim report for the six months ended 30 June 2018, annual report for the year ended 31 December 2018 and interim report for the six months ended 30 June 2019, which were published on 30 April 2018, 21 September 2018, 26 April 2019 and 24 September 2019 respectively (collectively the "Financial Statements"), and the announcement of the Company dated 5 September 2018 (the "2018 Announcement"). Unless the context otherwise requires, capitalised terms used herein shall have the same meanings as those defined in the Prospectus, the financial statements and the 2018 Announcement.

In addition to the information already disclosed, the Board would like to provide additional information in relation to the use of net proceeds of HK$422.6 million raised from the rights issue which was completed on 11 May 2017 as follows:-

Original allocation of the
net proceeds as disclosed in the
prospectus dated	Actual use of net proceeds
12 April 2017	up to 30 June 2018

	Remaining
	balance of net
Actual use of net proceeds	proceeds up to	Reallocation of the
up to 30 June 2019	30 June 2019	remaining net proceeds

Approximately HK$286.2 million for	Approximately HK$286.2	Approximately HK$286.2	Nil	Not applicable.
repayment of the New Shareholder's	million	million
Loan granted by the Controlling
Shareholder to facilitate the Acquisition
of the Target Company (excluding the
Deposit already paid)

- 1 -

Original allocation of the

net proceeds as disclosed in the prospectus dated

12 April 2017

Approximately HK $ 8 million for payment of Property related professional and agency fees for the Acquisition

Approximately HK$15 million for payment of renovation costs for the Target Property

Approximately HK$50 million for repayment of a shareholder's loan granted by the Controlling Shareholder in 2016 (including the Deposit)

Approximately HK$26 million for repayment of bank borrowings, a former director's loan and other payables

Actual use of net proceeds up to 30 June 2018

Approximately HK$6.2 million was used for the original purpose, and the remaining net proceeds of approximately HK$1.8 million were re-allocated and applied as part payment of the HK$20 million deposit of the Group's proposed acquisition of Yicko Securities Limited as disclosed in the Company's circular dated 24 May 2018 (the "Yicko Deposit").

Approximately HK$3.3 million was used for the original purpose, and the remaining net proceeds of approximately HK$11.7 million were re-allocated and applied as part payment of the Yicko Deposit.

Approximately HK$50 million

Approximately HK$0.3 million

				Remaining
				balance of net
Actual use of net proceeds	proceeds up to	Reallocation of the
up to 30 June 2019		30 June 2019	remaining net proceeds
Approximately	HK$6.2	Nil	Not applicable.
million was used for the
original	purpose,	and	the
remaining net proceeds
of approximately HK$1.8
million were re-allocated
and applied as part payment
of the	HK$20	million
deposit	of the	Group's
proposed acquisition	of
Yicko Securities Limited as
disclosed in the Company's
circular dated 24 May 2018
(the "Yicko Deposit").
Approximately	HK$3.3	Nil	Not applicable.
million was used for the
original	purpose,	and	the
remaining net proceeds	of
approximately HK$11.7
million were re-allocated
and applied as part payment
of the Yicko Deposit.
Approximately	HK$50	Nil	Not applicable.
million

Approximately HK$0.3	Approximately	All the remaining net
million	HK$25.7 million	proceeds are intended
		to be utilized for the
		same specific use by 31
		December 2019, and the
		Board is in negotiation
		with the former director
		for repayment of his
		loan.

- 2 -

Original allocation of the
net proceeds as disclosed in the
prospectus dated	Actual use of net proceeds
12 April 2017	up to 30 June 2018
Approximately HK$37.4 million as	(i)	Approximately HK$14.5
general working capital of the Group		million was used for
		the original purpose and
		applied as payment of
		various expenses including
		remuneration of directors
		and employees, property
		management fee and rates,
		legal and professional fees,
		audit fees, listing fees, and
		office and vehicle expenses.
	(ii)	Approximately HK$6.5
		million was re-allocated
		and applied as part
		payment of the Yicko
		Deposit.
	(iii)	Approximately HK$16
		million was re-allocated
		and applied as investment
		in the Group's wine
		business.
	(iv)	The remaining balance
		of approximately HK$0.4
		million would be applied
		as general working capital
		of the Group.

Hong Kong, 15 October 2019

			Remaining
			balance of net
Actual use of net proceeds	proceeds up to	Reallocation of the
up to 30 June 2019		30 June 2019	remaining net proceeds
(i)	Approximately HK$14.5	Nil	Not applicable.
	million was used	for
	the original purpose and
	applied as payment of
	various expenses including
	remuneration of directors
	and employees, property
	management fee and rates,
	legal and professional fees,
	audit fees, listing fees, and
	office and vehicle expenses.
(ii)	Approximately HK$6.5
	million was re-allocated
	and applied as	part
	payment of the Yicko
	Deposit.
(iii)	Approximately HK$16
	million was re-allocated
	and applied as investment
	in the Group's wine
	business.
(iv)	The remaining balance
	of approximately HK$0.4
	million was used	for

the original purpose and applied as payment of various expenses.

By Order of the Board

Guoan International Limited

DU Jun

Chairman

As at the date of this announcement, the Board comprises 9 Directors, of which 2 are executive Directors, namely Mr. HUANG Zhen Qian and Mr. SO Haw Herman, 4 are non-executive Directors, namely Mr. DU Jun, Mr. LI Xiang Yu, Mr. CUI Ming Hong and Ms. BAI Wei, and 3 are independent non-executive Directors, namely Mr. WONG Chun Man, Mr. TSE Yung Hoi and Mr. NG Man Kung.

- 3 -