Kingwell Group Limited — Earnings Release 2014

Jan 14, 2014

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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GUOCANG GROUP LIMITED 國 藏 集 團 有 限 公 司

(Incorporated in Bermuda with limited liability) (Stock code: 559)

POSITIVE PROFIT ALERT

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

The Board wishes to inform the Shareholders and potential investors that based on the management’s preliminary assessment of the Group’s unaudited consolidated management accounts for the six months ended 31 December 2013 and information currently available, the Group is expected to record a net profit for the six months ended 31 December 2013 as compared to a net loss for the corresponding period of 2012.

With reference to the circular and announcement of the Company dated 8 February 2013 and 22 April 2013 respectively in relation to the acquisition of the liquor and wine business completed in April 2013, the vendor and the guarantor to the Acquisition have jointly and severally warranted and guaranteed that the net profit of the liquor and wine business after tax calculated on a consolidated basis for the 12-months ended 31 December 2013 would be not less than RMB50,000,000. Based on the preliminary assessment of unaudited consolidated management accounts of the liquor and wine business for the 12-months ended 31 December 2013, this profit guarantee has been fulfilled.

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

This announcement is made by Guocang Group Limited (the ‘‘Company‘‘, together with its subsidiaries as the ‘‘Group’’) pursuant to Inside Information Provisions (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ‘‘Listing Rules’’)) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the ‘‘SFO’’) and Rule 13.09 of the Listing Rules.

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The Board of directors (the ‘‘Board’’) of the Company wishes to inform the shareholders of the Company (the ‘‘Shareholders’’) and potential investors that the Group is expected to record a net profit for the six months ended 31 December 2013 as compared to net loss for the corresponding period of 2012. The net profit is primarily due to (i) the operating profit contributed from the liquor and wine business; and (ii) the gain on fair value change on financial assets at fair value through profit and loss. The Board is of the view that the gain on fair value change on financial assets at fair value through profit and loss is an one-off item and does not have significant impact on the cashflow and business operations of the Group.

With reference to the circular and announcement of the Company dated 8 February 2013 and 22 April 2013 respectively in relation to the acquisition of the liquor and wine business (the ‘‘Acquisition’’) completed in April 2013, the vendor and the guarantor to the Acquisition have jointly and severally warranted and guaranteed that the net profit of the liquor and wine business after tax calculated on a consolidated basis for the 12-months ended 31 December 2013 would be not less than RMB50,000,000. Based on the preliminary assessment of unaudited consolidated management accounts of the liquor and wine business for the 12-months ended 31 December 2013, this profit guarantee has been fulfilled.

The information contained in this announcement is only based on the management’s preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended 31 December 2013 and that of the liquor and wine business for the 12-months ended 31 December 2013 and the information currently available, which have not been reviewed by the Company’s audit committee, nor audited by the Company’s auditor and may be subject to adjustments. The Company is in the process of finalizing the results of the Group for the six months ended 31 December 2013. Details of the performance of the Group will be disclosed in the 2014 interim results announcement, which is expected to be published in February 2014.

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

By order of the Board Guocang Group Limited Wong Hin Shek Chairman

Hong Kong, 14 January 2014

As at the date of this announcement, the executive Directors are Mr. Wong Hin Shek and Mr. Chi Chi Hung, Kenneth; and the independent non-executive Directors are Mr. Chiu Wai On, Mr. Man Kwok Leung and Dr. Wong Yun Kuen.

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