Kidztech Holdings Limited — Earnings Release 2021

Aug 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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Kidztech Holdings Limited 奇士達控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 6918)

ESTIMATE FOR 2021 INTERIM RESULTS

This announcement is made by Kidztech Holdings Limited (the “ Company ”, together with its subsidiaries collectively referred to as the “ Group ”) pursuant to Rule 13.09(2)(a) 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 board (“ Board ”) of directors (the “ Directors ”) of the Company hereby informs the shareholders (the “ Shareholders ”) and potential investors of the Company that, based on the preliminary assessment made by the Board on the Group’s unaudited consolidated management accounts and the information currently available to the Board, the Group expects to record (i) a revenue of approximately RMB115.5 million for the six months ended 30 June 2021 (the “ 1H2021 ”), representing a slight decrease of approximately RMB1.36 million or 1.17% when compared to that of the six months ended 30 June 2020 (the “ 1H2020 ”); and (ii) a net profit of approximately RMB7.3 million for 1H2021, representing (a) an increase of approximately RMB5.8 million or 362.5% when compared to the net profit of approximately RMB1.6 million for 1H2020; and (b) a decrease of approximately RMB6.9 million or 48.6% when compared to the adjusted net profit (excluding the one-off listing expenses) of approximately RMB14.2 million for 1H2020.

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The Board considered that the decrease in adjusted net profit (excluding the non-recurring listing expenses) of the Group was mainly attributable to:

• (i) the substantial increase in operating expenses (in particular, the freight charges and transportation cost) during 1H2021 when compared to the 1H2020 due to (a) the significant increase in freight charges from Hong Kong or Shenzhen to Europe and the United Stated of America (“ U.S. ”) caused by the increased demand for products exported from the People’s Republic of China in the markets in Europe and U.S. which drove the increase in the demand for air cargo spaces and the shortage thereof; and (b) the double in transport time as a result of the shortage of human resources at the ports in Europe and U.S., and the delivery schedules of the Group’s orders in such markets have been seriously affected by port congestion and delays; and

• (ii) the Group’s adjustment in focus in different major markets by reducing sales to markets in Europe and the U.S.. which are more seriously affected by the Coronavirus Disease 2019 (“ COVID-19 ”) and the emergence of the COVID-19 Delta variant, resulting in the temporary decrease in the amount and proportion of revenue attributable to direct sales to such overseas customers that have higher gross profit margin.

The Company is still in the process of finalising the unaudited consolidated results of the Group for 1H2021. The information contained in this announcement is only based on the information currently available to the Board and the preliminary review of the unaudited consolidated management accounts of the Group for 1H2021, which have not yet been audited or reviewed by the auditors or the audit committee of the Company and may be subject to adjustments. The actual financial results of the Group for 1H2021 may be different from the information disclosed in this announcement. Shareholders and potential investors of the Company are advised to read carefully the interim results announcement of the Company for 1H2021, which is expected to be published in late August 2021.

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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 Kidztech Holdings Limited Yu Huang Chairman, Chief Executive Officer and Executive Director

Shantou, 25 August 2021

As at the date of this announcement, the Board comprises Mr. Yu Huang and Mr. Pui Lik Leung Kenny as executive Directors, Ms. Zheng Jingyun as non-executive Director, and Mr. He Weidong, Ms. Liu Man and Ms. Zhao Weiwei as independent non-executive Directors.

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