Lee Kee : Positive Profit Alert and Disposal of Listed Securities

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 637)

Positive Profit Alert and Disposal of Listed Securities

This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors (the "Board") of Lee Kee Holdings Limited (the "Company", and together with its subsidiaries, the "Group") wishes to inform the shareholders of the Company and investors that based on the preliminary assessment of the Group's latest unaudited management accounts, the annual results (the "Annual Results") for the year ended 31st March 2017 (the "Financial Year") has improved, with the Group to register a gross profit and a profit attributed to equity holders of the Company compared to a gross loss and a loss attributed to equity holders of the Company of around HK$116.7 million for the previous financial year.

The improvement in profitability was mainly due to an increase in metal prices (particularly zinc) during the Financial Year, a higher contribution from the Group's alloying, testing and consultancy services and a gain from the disposal of listed securities. However, the tonnage sold by the Group during the Financial Year was less than the previous year due to the ongoing unfavourable operating environment.

During the period from 26th January to 13th April 2017, with a view to realise profit from part of the Group's investment (classified in the consolidated financial statements of the Group as "available-for-sale financial assets"), the Group disposed of around 3.3 million shares in the issued share capital of a listed company in the open market through The Stock Exchange of Hong Kong Limited at a price of between HK$3.62 to HK$3.98 per share for

aggregated sales proceeds of around HK$12.5 million (excluding stamp duty and related expenses). As a result of the disposal, the Group has realised a net gain of approximately HK$8.5 million of which HK$8 million is recognised in the Company's consolidated statement of profit or loss for the year ended 31st March 2017. The net gain is calculated on the basis of the total sales proceeds less the cost of investment (as adjusted by impairment loss in prior years). After the disposal and as at 17th April 2017, the Group holds an aggregate of approximately 7.6 million shares in the issued share capital of the listed company and intends to dispose such remaining listed securities (in whole or partial) as the Board may think appropriate. The Company may make further announcement(s) on any material impact on its operation or financial condition as a result of such disposal as and when necessary.

The information contained in this announcement is only based on the preliminary assessment made by the Company and has not been reviewed or audited by the auditors of the Company. Further details of the Annual Results of the Group will be provided in the Company's Annual Results announcement.

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

As at the date of this announcement, the directors of the Company are Mr. CHAN Pak Chung, Ms. CHAN Yuen Shan, Clara, Ms. MA Siu Tao, Mr. CHUNG Wai Kwok, Jimmy*, Mr. HU Wai Kwok*and Mr. HO Kwai Ching, Mark*.

By Order of the Board

CHAN Pak Chung

Chairman

Hong Kong, 18th April, 2017

* Independent Non-Executive Directors