Kinetic Mines and Energy : Announcements and Notices - Positive Profit Alert

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KINETIC MINES AND ENERGY LIMITED ɢඎᘤุঐ๕Ϟࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1277)

POSITIVE PROFIT ALERT

This announcement is made by the Company pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance.

The Board wishes to inform the shareholders of the Company and potential investors that based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2018, it is expected that the Group's consolidated net profit for the year ended 31 December 2018 will increase significantly by over 40% as compared to the consolidated net profit of RMB540.0 million for the year ended 31 December 2017.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

This announcement is made by Kinetic Mines and Energy 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 the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company (the "Board") would like to inform the shareholders of the Company and potential investors that, based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2018, it is expected that the Group's consolidated net profit for the year ended 31 December 2018 will increase significantly by over 40% as compared to the consolidated net profit of RMB540.0 million for the year ended 31 December 2017. This is mainly attributable to a higher turnoverof the Group for the year ended 31 December 2018. The Group recorded a total sales of over RMB2,400.0 million in 2018, representing an increase of approximately 35% over the total sales of the Group in 2017. In addition, the average selling price of the Group's coal products remained relatively stable for the year ended 31 December 2018 compared to the year ended 31 December 2017.

The information contained in this announcement is based only on the preliminary assessment by the Board upon its review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2018 and other information currently available to the Company which has not been reviewed or audited by the Company's independent auditor. Shareholders of the Company and potential investors are advised to refer to the details of the Company's results announcement for the year ending 31 December 2018 expected to be announced by the end of March 2019.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

Kinetic Mines and Energy Limited

Zhang Li

Chairman and Executive Director

Hong Kong, 21 January 2019

As at the date of this announcement, the Board comprises seven directors, of whom three are executive directors, namely Mr. Zhang Li (Chairman), Mr. Gu Jianhua (Chief Executive Officer) and Mr. Zhang Liang, Johnson; one is a non-executive director, namely Ms. Zhang Lin, and three are independent non-executive directors, namely Ms. Xue Hui, Ms. Liu Peilian and Mr. Zheng Ercheng.