China Metal Resources Utilization Limited — Earnings Release 2020

Mar 25, 2021

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.

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CHINA METAL RESOURCES UTILIZATION LIMITED 中國金屬資源利用有限公司

(Incorporated in the Cayman Islands with limited liability) (Stock Code: 1636)

PROFIT WARNING

This announcement is made by China Metal Resources Utilization 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) (the ‘‘SFO’’).

The board of directors of the Company (the ‘‘Board’’) wishes to inform the shareholders (the ‘‘Shareholders’’) and potential investors of the Company that the loss attributable to the Shareholders for the year ended 31 December 2020 is expected to substantially increase as compared with that for the year ended 31 December 2019.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

This announcement is made by the Company pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions under Part XIVA of the SFO.

The Board wishes to inform the Shareholders and potential investors of the Company that, based on information currently available, the Group is expected to record a loss attributable to Shareholders of approximately RMB400 million for the year ended 31 December 2020 (the ‘‘Year’’) as compared with the loss attributable to Shareholders of RMB 217 million for the year ended 31 December 2019.

Based on the information currently available to the Company, the Board believes that such substantial increase in loss is mainly attributable to the substantial increase in provision for doubtful debts, substantial decrease in VAT refunds, government grants and subsidies and an additional loss on goodwill impairment in the Year caused by tighter liquidity situation of our customers, a decrease in volume of our sale transactions under the detrimental impact of COVID-19 on the economy.

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The Board would also like to inform the Shareholders and potential investors of the Company that, notwithstanding the above, the daily operations and financial position of the Group remain stable.

As at the date of this announcement, the Company is still in the progress of finalising the financial results of the Group for the Year. The information contained in this announcement remains subject to the final audit by the auditors of the Company as at the date of this announcement and may be subject to necessary adjustments.

Shareholders and potential investors of the Company are advised to peruse the financial results for the Year with care when it is released. The results announcement of the Group for the Year is expected to be released by the end of March 2021.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

By order of the Board China Metal Resources Utilization Limited Mr. YU Jianqiu Chairman

Hong Kong, 25 March 2021

As at the date of this announcement, the Board comprises four executive directors, namely, Mr. Yu Jianqiu, Mr. Kwong Wai Sun Wilson, Mr. Huang Weiping and Ms. Zhu Yufen; and three independent non-executive directors, namely Mr. Lee Ting Bun Denny, Mr. Pan Liansheng and Ms. Ren Ruxian.

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