Morris : SUPPLEMENTAL ANNOUNCEMENT PROFIT WARNING

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.

MORRIS HOLDINGS LIMITED

慕 容 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1575)

SUPPLEMENTAL ANNOUNCEMENT

PROFIT WARNING

This announcement is made by Morris Holdings Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Reference is made to the Company's profit warning announcement dated 6 March 2020 (the "Announcement"). Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

The Board wishes to provide further information to the Shareholders and potential investors that, based on a further review on the unaudited consolidated management accounts for the year ended 31 December 2019 of the Group and the information currently available to the Company, the Group expects to record a loss of approximately RMB120 million attributable to the Shareholders for the year ended 31 December 2019 as compared to a profit of approximately RMB86 million attributable to the Shareholders for the year ended 31 December 2018. The turnaround from profit to a loss is primarily due to an approximate 35% decline in sales revenue of the Group as a result of the US-China trade tensions that have dampened consumer sentiment and continuing uncertainties in the international trade environment.

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The information contained in this announcement is only based on a preliminary assessment by the Board according to the unaudited consolidated management accounts of the Group for the year ended 31 December 2019 and the information available to the Board as at the date of this announcement, which have not been reviewed or audited by the auditor of the Company and are subject to adjustment. The Company is in the process of preparing and finalising the Group's annual results for the year ended 31 December 2019. Details of the Group's financial information for the year ended 31 December 2019 will be disclosed in its annual results announcement which is expected to be published on 24 March 2020.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company and, in case of doubt, to seek independent advice from professional or financial advisers.

By order of the Board

Morris Holdings Limited

Zou Gebing

Chairman, chief executive officer

and executive Director

Hong Kong, 11 March 2020

As at the date of this announcement, the executive Directors are Mr. Zou Gebing, Mr. Wu Yueming, Mr. Zeng Jin and Mr. Shen Zhidong; and the independent non-executive Directors are Mr. Pang Wing Hong, Mr. Chu Guodi and Mr. Liu Haifeng.

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