Dongyue Group Limited — Capital/Financing Update 2021

Jan 28, 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.

DONGYUE GROUP LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 189)

SUPPLEMENTAL ANNOUNCEMENT ESTIMATED RESULTS OF SUBSIDIARY

Reference is made to the announcement of Dongyue Group Limited (the “ Company ”) dated 27 January 2021 (the “ Announcement ”) in relation to the publication by Dongyue Organosilicone, a non-wholly owned subsidiary of the Company listed on ChiNext of the Shenzhen Stock Exchange, of the Dongyue Organosilicone Announcement in respect of its estimated financial results for the year ended 31 December 2020 on the website of the Shenzhen Stock Exchange (www.szse.cn). Unless the context otherwise requires, capitalized terms used herein shall have the same meanings as those defined in the Announcement.

The Company wishes to provide the shareholders and potential investors of the Company with the following information set out in the Dongyue Organosilicone Announcement:

	For the year ended 31
	December 2019	**For the year ended **	31 December 2020
	Actual	Original estimation*	Revised estimation
	RMB’000	RMB’000	RMB’000
Net profit attributable to	553,425	159,181 to 174,960	249,041 to 332,055
shareholders of		(Year-over-year decrease:	(Year-over-year decrease:
Dongyue		68.39% to 71.24%)	40% to 55%)
Organosilicone

* As disclosed in the third quarterly report 2020 published by Dongyue Organosilicone on the website of the Shenzhen Stock Exchange.

The reason for the above revision of the estimated profit of Dongyue Organosilicone is that in the fourth quarter of 2020, due to recovery of the industry and increase in downstream demand, there has been an increase in the prices of Dongyue Organosilicone’s products as compared to the first three quarters of 2020, which has had a positive effect on Dongyue Organosilicone’s performance for the fourth quarter of 2020.

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Save as disclosed in this announcement, all information in the Announcement remains unchanged.

Shareholders and potential investors of the Company are reminded that the Dongyue Organosilicone Announcement was prepared in accordance with the internal management records of Dongyue Organosilicone and has not been audited or reviewed by external auditors of the Company in accordance with the accounting standards adopted by the Company. Shareholders and potential investors of the Company are advised to exercise caution and not to place undue reliance on such information when dealing in the securities of the Company.

By Order of the Board Dongyue Group Limited Zhang Jianhong Chairman

The PRC, 28 January 2021

As at the date of this announcement, the directors of the Company are Mr. Zhang Jianhong, Mr. Fu Kwan, Mr. Liu Chuanqi, Mr. Zhang Zhefeng, Mr. Zhang Bishu and Mr. Zhang Jian as executive directors, and Mr. Ting Leung Huel, Stephen, Mr. Yang Xiaoyong and Mr. Yue Run Dong as independent non-executive directors.

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