The board of directors (the "Board") of the Target Insurance (Holdings) Limited announced that the publication of the announcement in relation to the 2021 Annual Results and the dispatch of the 2021 Annual Report will be delayed for the following reasons: As announced by the Company on 10 January 2022, pursuant to the direction of the Insurance Authority (the "IA") (the "Direction"), the affairs, business and property of Target Insurance Company, Limited (the "Subsidiary"), being a wholly owned subsidiary of the Company, have come under the management of the Joint and Several Managers with effect from 7 January 2022 (the "Takeover"). Since the Takeover became effective, the chief executive and directors of the Subsidiary could no longer act or continue to act in their capacity as chief executive or director of the Subsidiary. As announced by the Company on 21 February 2022, the Company has made an application to the Insurance Appeals Tribunal to review, among other things, the Direction as well as to make an urgent application to stay the execution of the said Direction (the "Applications").

After hearing the submissions made by the counsel of the IA and the counsel of the Company on 31 January 2022 and 1 March 2022, the Chairman of the Insurance Appeals Tribunal directed that the Applications be heard at the next hearing scheduled on 22 April 2022. While the Applications are pending to be decided, the management of the Company is deprived of substantially all access to the books and records of the Subsidiary so long as the Takeover remains in effect. Since the Company was not furnished with the Subsidiary's financial statements in respect of the year ended 31 December 2021, it is not feasible for the Company to prepare and finalise its consolidated accounts for the 2021 Annual Results and the 2021 Annual Report.

Further, with the board of the Subsidiary having been suspended from duty since the Takeover, it remains unclear to the Company how the Subsidiary's financial statements could be effectively prepared and approved at this stage. The Board acknowledges that any delay in the publication of the 2021 Annual Results and delay in the dispatch of the 2021 Annual Report may be regarded as non-compliance of Rules 13.49(1) and 13.46(2) of the Listing Rules. Discussions with the Auditor remain ongoing and the Board has been using its best endeavour to assist and cooperate with the Auditor in order to complete the audit process as soon as possible.

Meanwhile, the board meeting to approve the 2021 Annual Results will be held at a future date to be determined by the Board.