Success Dragon International : INSIDE INFORMATION PROPOSED CESSATION OF OPERATION OF THE OUTSOURCED BUSINESS PROCESS MANAGEMENT

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Success Dragon International Holdings Limited

勝 龍 國 際 控 股 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 1182)

INSIDE INFORMATION

PROPOSED CESSATION OF OPERATION OF

THE OUTSOURCED BUSINESS PROCESS MANAGEMENT

This announcement is made by Success Dragon International Holdings Limited (the "Company", 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).

Reference is made to the 2019/20 annual report of the Company and the 2020/21 interim report of the Company (the "Interim Report"). Unless otherwise specified, capitalised terms used herein shall have the same meaning as those defined in the Interim Report.

As disclosed in the Interim Report, for the six months ended 30 September 2020, revenue generated from the Outsourced Business Process Management for electronic gaming machines in Macau decreased significantly by approximately 57.7% from approximately HK$42.0 million in the same period of last year (the "Last Corresponding Period") to approximately HK$17.8 million, which contributed approximately 35.2% (Last Corresponding Period: approximately 94.9%) of the Group's total revenue. The decrease was mainly attributable to intense competition in the Macau gaming market faced by the Group. The market competition was further worsened by the outbreak of COVID-19 pandemic.

Due to its less than satisfactory performance, the board of directors of the Company (the "Board") proposed to cease to operate the Outsourced Business Process Management. As the 2 contracts with the casinos for the Outsourced Business Process Management are expected to expire on 30 April 2021 and 31 May 2021, respectively, the Board proposed not to renew the contracts, and as a result, the Company will cease to operate the Outsourced Business Process Management in the coming month.

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The Company will continue to develop its gold-laden carbon processing business and money lending services while exploring other profitable business opportunities and open up different revenue channels in different markets to deliver strong and sustainable returns to the shareholders of the Company.

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

By order of the Board

Success Dragon International Holdings Limited

DING Lei

Chairman, Co-Chief Executive Officer and Executive Director

Hong Kong, 30 April 2021

As at the date of this announcement, the Board comprises, three Executive Directors, namely Mr. DING Lei, Mr. ZHU Tianxiang and Ms. DENG Ganghui; and three Independent Non-Executive Directors, namely Ms. WONG Chi Yan, Mr. DENG Yougao and Mr. CHONG Lok Man.

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