Okura : VOLUNTARY ANNOUNCEMENT BUSINESS UPDATE

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.

Okura Holdings Limited

(Incorporated in Hong Kong with limited liability)

(Stock Code: 01655)

VOLUNTARY ANNOUNCEMENT

BUSINESS UPDATE

This is a voluntary announcement made by Okura Holdings Limited (the ''Company'', together with its subsidiaries, the ''Group'') for keeping the shareholders of the Company (the ''Shareholders'') and potential investors informed of the latest business development of the Group.

The board (the ''Board'') of directors (the ''Directors'') of the Company wishes to inform the Shareholders and potential investors that two of its pachinko halls, namely, its K's Plaza Mikatsuki hall located at 1123 Chokanda Mikatsukicho Ogi-shi, Saga Prefecture, Japan (''KS Mikatsuki'') and its Big Apple. YOUPARK Motosumiyoshi hall located at 2-2-34 Kizuki, Nakahara-ku,Kawasaki-shi, Kanagawa Prefecture, Japan (''BA Motosumiyoshi''), will cease operations with effect from 10 May 2021. The management of the Company has decided to close down KS Mikatsuki and BA Motosumiyoshi having duly considered their deteriorating operating and financial performance since the outbreak of the Coronavirus Disease 2019 (''COVID-19'') in Japan in January 2020 and the resulting significant decline in overall customer traffic. The management considered that as compared to some of the Group's other pachinko halls, which have gradually managed to regain customer traffic since the latter half of 2020, KS Mikatsuki and BA Motosumiyoshi have not yet been able to recover their customer traffic despite the Group's continuous effort. Taking into account the general adverse operating landscape and the intense competition in the pachinko industry, the management considered that it will be more beneficial for the Group to focus its resources on the more promising pachinko halls by enhancing customer experience there and minimise further losses by closing down the pachinko halls with weaker

- 1 -

performance. The Directors believe that such streamlining of resources and operations will help stabilise and improve the Group's financial performance in the long run, and is in the best interests of the Group and the Shareholders as a whole.

The below table sets forth the financial information of KS Mikatsuki and BA Motosumiyoshi for the periods indicated:

		Approximate		Approximate
		percentage		percentage
		contributed		contributed
		to the Group		to the Group
	For the six	for the six	For the	for the
	months ended	months ended	year ended	year ended
	31 December	31 December	30 June	30 June
	2020	2020	2020	2020
	(unaudited)	(%)	(unaudited)	(%)
	(JPY '000)		(JPY '000)
KS Mikatsuki
Revenue	33,779	1.2%	84,572	1.2%
Loss before taxation	14,686	40.8%	19,687	0.3%
BA Motosumiyoshi
Revenue	30,346	1.1%	104,470	1.5%
Loss before taxation	7,979	22.2%	15,133	0.2%
				Approximate
				percentage
				accounted for
				the Group's
				consolidated
			As at	figures as at
			31 December	31 December
			2020	2020
			(unaudited)	(%)
			(JPY '000)
KS Mikatsuki
Net asset value			39,513	1.0%
Total asset value			234,659	1.0%
BA Motosumiyoshi
Net liability value			636,283	- (Note)
Total asset value			273,775	1.2%

- 2 -

Note: The approximate percentage accounted for the Group's consolidated net asset value as at 31 December 2020 is not applicable as BA Motosumiyoshi recorded a net liability value instead of a net asset value as at 31 December 2020.

Based on the information currently available to the Group, an insignificant loss on disposal of assets is expected to be recognised by the Company for the year ending 30 June 2021 in relation to the closure of KS Mikatsuki. Save as disclosed above, the Board considers that the closure of KS Mikatsuki and BA Motosumiyoshi has no material adverse impact on the business operation and financial position of the Group.

Shareholders and potential investors should exercise caution when dealing in the securities of the Company.

For and on behalf of the Board

Okura Holdings Limited

Katsuya YAMAMOTO

Chief Executive Officer, Executive Director and

Chairman of the Board

Hong Kong, 7 May 2021

As at the date of this announcement, the Board comprises seven Directors, of which (i) four are executive Directors, namely Mr. Katsuya YAMAMOTO, Mr. Fumihide HAMADA, Mr. Yutaka KAGAWA and Mr. Toshiro OE; and (ii) three are independent non-executive Directors, namely Mr. Mitsuru ISHII, Mr. Yuji MATSUZAKI and Mr. Kazuyuki

YOSHIDA.

- 3 -