Palace Banquet : PROPOSED AMENDMENT TO THE ARTICLES OF ASSOCIATION

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.

PALACE BANQUET HOLDINGS LIMITED

首灃控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1703)

PROPOSED AMENDMENT TO

THE ARTICLES OF ASSOCIATION

This announcement is made pursuant to Rule 13.51(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The board (the "Board") of directors of Palace Banquet Holdings Limited (the "Company", together with its subsidiaries, the "Group") announces that, in order to enhance corporate governance standards of the Company, in particular in the conduct of board meetings, the Board proposes to amend the relevant provision of the Articles of Association of the Company to increase the quorum necessary for the transaction of the business of the Board (the "Proposed Amendment"). Details of the specific amendments are set out as below:

Before amendment	After amendment
Article 113(1)	Article 113(1)
The quorum necessary for the transaction of	The quorum necessary for the transaction of
the business of the Board may be fixed by the	the business of the Board may be fixed by the
Board and, unless so fixed at any other number,	Board and, unless so fixed at any other number,
shall be two (2). An alternate Director shall be	shall be four (4). An alternate Director shall be
counted in a quorum in the case of the absence	counted in a quorum in the case of the absence
of a Director for whom he is the alternate	of a Director for whom he is the alternate
provided that he shall not be counted more than	provided that he shall not be counted more than
once for the purpose of determining whether or	once for the purpose of determining whether or
not a quorum is present.	not a quorum is present.

- 1 -

Save for the amendments above, the contents of the other articles of the Articles of Association remain unchanged.

The above Proposed Amendment are subject to consideration and approval of the shareholders of the Company (the "Shareholders") at the general meeting of the Company by way of a special resolution. A circular containing, among other things, details of the Proposed Amendment will be despatched to the Shareholders in due course.

By order of the Board

Palace Banquet Holdings Limited

Chan Shou Ming

Chairman

Hong Kong, 28 August 2020

As at the date of this announcement, the executive directors of the Company are Mr. Chan Shou Ming, Ms. Chen Xiao Ping, Ms. Qian Chunlin and Mr. Tam Kar Wai; and the independent non- executive directors of the Company are Mr. Chan Koon Yuen Windaus, Mr. Ng Kwok Tung and Mr. Yue Ming Wai Bonaventure.

- 2 -