Wai Chi : Announces Interim Results Profit for the Period Attributable to Owners of the Company More Than Doubled Automobile Display LED Backlight Product Sales Continue to Grow Semiconductor Memory Chip Packaging and Testing Business Started Generating Revenue for the Group

【For immediate release】

Wai Chi Holdings Company Limited

偉志控股有限公司

(Stock code: 1305.HK)

Wai Chi Holdings Announces Interim Results

Profit for the Period Attributable to Owners of the Company More Than Doubled

Automobile Display LED Backlight Product Sales Continue to Grow

Semiconductor Memory Chip Packaging and Testing Business Started Generating

Revenue for the Group

(Hong Kong, 26 August 2022)-Wai Chi Holdings Company Limited ("Wai Chi Holdings", together with its subsidiaries collectively known as the "Group") (Stock code: 1305.HK) is pleased to announce its interim results for the six months ended 30 June 2022 ("the period under review"). The total revenue for the period under review was approximately HK$1,112,441,000, an increase of approximately 24.7% compared to approximately HK$892,393,000 for the six months ended 30 June 2021 (the "corresponding period"). Overall gross profit was approximately HK$113,840,000, decreased by approximately 12.9% from approximately HK$130,654,000 in the corresponding period in 2021. The overall gross profit margin was approximately 10.2%, decreased by approximately 4.4 percentage points from approximately 14.6% in the corresponding period in 2021. Profit for the period attributable to owners of the Company amounted to approximately HK$32,940,000, an increase of approximately 113.3% from approximately HK$15,443,000 in the corresponding period in 2021.

Mr. Chen Chung Po, Chairman, Executive Director and CEO of the Group said, "During the period under review, the impacts brought by the high inflation rate, post-COVID-19and Russo- Ukrainian War possessed challenges for the business environment. However, China's economic resilience and high demand for the new energy vehicles stimulated the Group's sales in automobile onboard displays backlight products. At the same time, the Group's packaging and testing line has started generating revenue in the period under review, mainly due to China's great emphasis on 5G technology, necessitated the reliance on semiconductor memory chips. As the Group engages in an ever-changingindustry, we will stay vigilant and resilient in seizing business opportunities and enhancing the quality of existing businesses."

The revenue from one of the Group's major business segments, sales of LED backlight products, amounted to approximately HK$780,139,000, representing an increase of approximately 20.0% (six months ended 30 June 2021: HK$650,053,000), which was mainly attributable to the increase in sales of its core product lines, especially the automobile display LED backlight products, increased by approximately 27.1% during the period under review, reaching approximately HK$638,595,000. The television display segment sales decreased by approximately 43.8% to approximately HK$17,260,000, the Group is planning to end this line of business at the end of the year amid a contracting market. While the Group's other industrial equipment displays increased mildly by approximately 6.2%, reaching approximately

HK$124,284,000 (six months ended 30 June 2021: approximately HK$117,042,000).

The revenue from the Group's other major business segment, sales of LED lighting products, was approximately HK$48,761,000 (six months ended 30 June 2021: approximately HK$64,360,000), decreased by approximately 24.2%. Revenues from public and commercial lighting were approximately HK$596,000 and HK$48,165,000 (six months ended 30 June 2021: approximately HK$2,811,000 and HK$61,549,000), respectively, observing a decrease of approximately 78.8% and 21.7%, respectively. The decrease in both of the business lines was mainly attributable to (i) overseas clients placing large orders to combat supply chain disruptions in the previous year, leaving inventory surpluses this year; (ii) decrease in orders from Europe, resulting from soaring inflation of the Euro; (iii) start of Russo-Ukrainian War, impeding the flow of goods; and (iv) rise in electricity costs in the Group's major overseas market in Europe, reducing the demand for new lighting projects. During the period under review, it has also been manufacturing education lights in China, offsetting some of the income loss from the overseas market.

During the period under review, the Group launched the semiconductor memory chip business, recorded a revenue of approximately HK$283,541,000, which included approximately HK$14,642,000 (six months ended 30 June 2021: nil) from the newly launched line of packaging and testing business, and approximately HK$268,899,000 (six months ended 30 June 2021: approximately HK$177,980,000) from the sourcing of memory chip-related products.

The Group's R&D centre is located at its production plant in Huizhou, providing strong technical and R&D support for its business. The Group has achieved a number of technological advancements and breakthroughs over the years, and as of 30 June 2022, the Group holds 213 patents registered in the PRC.

Mr. Chen Chung Po, Chairman, Executive Director and CEO of the Group concluded, "The Group has enjoyed impressive growth from its major revenue contributor, the sales of automobile onboard display backlights during the period under review. In order to raise the competitiveness in this segment, the Group will proactively enhancing technological advancement, diversifying client base and incorporating updated business models, and focus on this segment in the second half of 2022. While people are adapting to the new normal under the pandemic, the anti- epidemic measures made consumer electronics indispensable and essential for everyday life, boosting the demand for the semiconductor chips, which is beneficial to the Group's newly launched semiconductor packaging and testing line. The Group will uphold prudent business development and respond to the market changes timely to achieve higher profit margins."

About Wai Chi Holdings Company Limited (Stock Code: 1305.HK)

Wai Chi Holdings Company Limited is an established LED products manufacturer focusing on producing LED backlight and LED lighting products on an OEM and ODM basis. Equipped with comprehensive production facilities in Shenzhen, Huizhou and Yichang in the PRC, the Group is capable of handling the requisite production procedures (including product design, mould production, mass production and quality control and maintenance) for LED backlight products and LED lighting products. The Group recently expanded its business into the semiconductor memory chips filed to capture the growing demand in the market. The Group was listed on the

Main Board of The Stock Exchange of Hong Kong Limited in November 2014 and its stock code is 1305.HK.

- End -

Media Contact

Financial Asia Group (HK) Limited

Tel: [phone]

Email：[e-mail]