Dowway Holdings Limited — Earnings Release 2020

Mar 8, 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited (the ‘‘Stock Exchange’’) 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.

Dowway Holdings Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 8403)

PROFIT WARNING

This announcement is made by Dowway Holdings Limited (the ‘‘Company’’, and together with its subsidiaries, the ‘‘Group’’) pursuant to Rule 17.10(2) of the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the ‘‘GEM Listing Rules’’) and the Inside Information Provisions (as defined under the GEM Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the ‘‘SFO’’).

Based on the information currently available and the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2020 by the board (the ‘‘Board’’) of directors (the ‘‘Directors’’) of the Company, the Board wishes to inform the shareholders of the Company (the ‘‘Shareholders’’) and potential investors of the Company that, the Group expects to record an increase in net loss of not less than approximately RMB15.0 million for the year ended 31 December 2020, as compared to a net loss of approximately RMB1.3 million for the corresponding period in 2019.

The anticipated increase in net loss for the year ended 31 December 2020 was primarily attributable to the significant adverse impact of the outbreak of coronavirus disease (COVID-19) epidemic that resulted in the cancellation and deferment of events and exhibitions and reduction of both the number of projects and contract value completed by the Group during the year ended 31 December 2020, and as a result led to a decrease in the Group’s revenue by approximately RMB84.1 million or approximately 36.8% to approximately RMB144.2 million for the year ended 31 December 2020 as compared to the revenue of approximately RMB228.3 million during the corresponding period in 2019. Also, during the year ended 31 December 2020, the Group did not record in other gains of a grant received from the PRC government in 2019 for being a newly listed company in 2018 of approximately RMB5.0 million, which was a one-off gain and did not recur during the year ended 31 December 2020. As a result, the Group expects to record a net loss of not less than approximately RMB15.0 million for the year ended 31 December 2020.

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As the Company is still in the course of finalizing its results for the year ended 31 December 2020, the information contained in this announcement is only a preliminary assessment by the Board based on the information currently available and the unaudited consolidated management accounts of the Group, which have not been reviewed or audited by the Company’s auditors nor confirmed by the Company’s audit committee. The overall financial results of the Group for the year ended 31 December 2020 will only be ascertained when all the relevant results and corresponding treatments are finalized, which may be different from those disclosed in this announcement. Detailed financial information of the Group will be disclosed in the final results announcement for the year ended 31 December 2020 which is expected to be published by the Company within the timeframe as stipulated under the GEM Listing Rules.

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

By Order of the Board Dowway Holdings Limited Huang Xiaodi

Chairman, Chief Executive Officer and Executive Director

Beijing, China, 8 March 2021

As at the date of this announcement, the executive Directors are Mr. Huang Xiaodi, Mr. Ma Yong and Mr. Yan Jinghui; the non-executive Director is Mr. Yuen Lai Him; and the independent non-executive Directors are Ms. Xu Shuang, Mr. Gao Hongqi and Mr. Yu Leung Fai.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the ‘‘Latest Listed Company Information‘‘page of the GEM website of the Stock Exchange at www.hkgem.com for a minimum period of 7 days from the date of publication and on the website of the Company at www.dowway-exh.com.

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