Sinostar PEC : Profit Guidance

SINOSTAR PEC HOLDINGS LIMITED

(Company Registration No.: 200609833N)

PROFIT GUIDANCE FOR THE FIRST QUARTER ENDED 31 MARCH 2020

The Board of Directors (the "Board") of Sinostar PEC Holdings Limited (the "Company" or together with its subsidiaries, "the Group") wishes to issue a profit guidance with respect to its first quarter results ended 31 March 2020 ("1Q2020").

The world faces shrinking demand amid growing COVID-19 pandemic and the volatility of the oil prices, the Chinese market has been affected after months of disruption due to the country lockdown. Although China is starting to resume some of its economic activities as their COVID-19 outbreak comes under control. But overall, the recovery is slow.

The raw material of the Group is LPG, which has a certain correlation with the international crude oil prices. In the first quarter, the price of raw LPG fell by 30% due to the collapse of international crude oil prices. The Group's core products are Polypropylene, Propylene and MTBE. During this coronavirus outbreak, individual products climbed up on the back of strong demand. There is an increase in demand for polypropylene (pp) fiber that is used in production of protective surgical masks and related products manufacturing.

Nonetheless the price of MTBE is highly related to the gasoline price and is impacted by the decline in gasoline prices.

The Group is confident that as China fully restarts their economic activity may make up for the demand lost during the lockdown and the Company's operations will also be improved respectively, and simultaneously continue to be prudent in cash flow management while managing risks and focusing on cost efficiency and stable production.

Further details of the Group's performance will be disclosed when the Company finalizes and announces its unaudited consolidated financial results for 1Q2020 on or before 15 May 2020.

By Order of the Board

Zhang Liucheng

CEO and Executive Director