Xingye Alloy Materials : POSITIVE PROFIT ALERT

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Xingye Alloy Materials Group Limited ጳุΥږҿࣘණྠϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 505)

POSITIVE PROFIT ALERT

This announcement is made by Xingye Alloy Materials Group Limited (the "Company" and 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) (the "SFO").

The board of directors of the Company (the "Board") wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group, the profit attributable to the equity shareholders of the Group for the year ended 31 December 2020 (the "Current Year"), is expected to increase by more than 100% as compared to the profit attributable to the equity shareholders of the Group for the year ended 31 December 2019 (the "Prior Year"). The improvement in the profitability for the Current Year is mainly attributable to the following reasons: 1) the increase in copper price during the Current Year; 2) the Group recorded nil impairment loss on goodwill in the Current Year as compared with RMB28.3 million in the Prior Year.

The Company is still in the process of finalising the annual results of the Group for the Current Year. The information contained in this announcement is only based on the preliminary assessment by the Board of the unaudited consolidated management accounts of the Group for the Current Year and the information currently available to the Company and have not been audited or reviewed by the Company's auditor, and may be subject to adjustments. Details of the Group's annual results for the Current Year will be disclosed as and when the annual results of the Group for the Current Year is announced which is expected to be published in due course.

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

By Order of the Board

Xingye Alloy Materials Group Limited

HU Minglie

Chief Executive Officer and Executive Director

Hong Kong, 1 March 2021

As at the date of this announcement, the executive directors of the Company are Mr. HU Changyuan, Mr. HU Minglie and Mr. ZHU Wenjun, and the independent non-executive directors of the Company are Mr. CHAI Chaoming, Dr. LOU Dong and Ms. LU Hong.