M&L Holdings Group Limited — Earnings Release 2021

Oct 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.

==> picture [97 x 52] intentionally omitted <==

M&L HOLDINGS GROUP LIMITED 明樑控股集團有限公司

( Incorporated in the Cayman Islands with limited liability )

(Stock code: 8152)

PROFIT WARNING

This announcement is made by M&L Holdings Group Limited (the “ Company ”, together with its subsidiaries, the “ Group ”) pursuant to Rule 17.10 of the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited (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 board of directors (the “ Board ”) of the Company would like to inform the shareholders and potential investors of the Company that, based on the information currently available to the Board, the Group is expected to record a loss before tax of approximately HK$8.5 million for the nine months ended 30 September 2021 (the “ Period ”) as compared to the loss of HK$9.8 million for the nine months ended 30 September 2020 (“ Comparative Period ”).

The Board considers that the expected loss before tax for the Period was mainly attributable to (i) no major tunnel boring projects being launched in Hong Kong; (ii) revenue from the PRC market remained at low level as certain projects of our (potential) customers have been delayed and their purchasing decisions become prudent and more price conscious due to COVID-19 and the accompanied economic uncertainties; and (iii) business expansion in overseas markets fell short of expectation as construction activities worldwide being affected by the COVID-19 outbreak.

From a period-on-period comparison perspective, the Board considers that the decrease in expected loss for the Period as compared to Comparative Period was mainly due to the combined effect of (i) an increase in total revenue by approximately 18.5%, as sales in Hong Kong market showed notable improvement in the third quarter of 2021; (ii) an increase in gross profit by approximately HK$0.9 million as a result of increase in revenue but decline in gross profit margin from 29.5% to 26.3% for the Period; and (iii) a decrease in selling expenses by approximately HK$0.5 million in selling expenses, as the unexpected increase in freight rates owing to disorder in the shipping market since the latter part of year 2020 has gradually subsided.

The Company is in the process of finalising its unaudited consolidated results for the Period. The information contained in this announcement is only based on a preliminary assessment by the Board with reference to the information currently available as aforementioned, which have not been reviewed by the audit committee of the Company and may be subject to change. Shareholders of the Company and potential investors are advised to read carefully the announcement of quarterly results of the Group for the Period which is expected to be published on 8 November 2021.

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

By order of the Board M&L Holdings Group Limited Ng Lai Ming Executive Director, Chairman and Chief Executive Officer

Hong Kong, 28 October 2021

This announcement, for which the directors of the Company (the “ Directors ”) collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited 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.

As at the date of this announcement, the executive Directors are Mr. Ng Lai Ming (chairman of the Board), Mr. Ng Lai Tong and Mr. Ng Lai Po and the independent non-executive Directors are Mr. Tai Wai Kwok, Ir Lo Kok Keung and Mr. Lau Chi Leung.

This announcement will remain on the website of the GEM of The Stock Exchange of Hong Kong Limited at www.hkgem.com on the “Latest Company Announcements” page for at least 7 days from the date of its posting. This announcement will also be published on the website of the Company at www.mleng.com.