Yadea Group Holdings Ltd. — Earnings Release 2014

Jan 17, 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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PROFIT WARNING

This announcement is made by Chaoda Modern Agriculture (Holdings) Limited (the Company , together with its subsidiaries, the Group ) pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities (the Listing Rules ) on The Stock Exchange of Hong Kong Limited (the Stock Exchange ) and the Inside Information Provisions (as defined under the 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 wishes to inform its shareholders (the Shareholders ) and potential investors that, based on the information currently available to the Board, the financial performance of the Group for the financial years ended 30 June 2012 and 2013 and the six months’ periods ended 31 December 2011, 2012 and 2013 had been affected in varying degrees by the events leading to the suspension and/or continued suspension of trading in the Company’s shares on the Stock Exchange since 26 September 2011, particularly those allegations made against the Company in an anonymous report issued by Anonymous Analytics on 26 September 2011. These allegations, which were responded to and categorically denied by the Company in its announcement dated 19 July 2013, have dampened the confidence of the Group’s business partners (including its customers and suppliers) in the Group, tarnished the Group’s good reputation (which is critical to selling the Group’s branded and quality products), reduced demand for the Group’s products, put the Group in a disadvantages position in its sales momentum, and adversely affected the Group’s overall business and financial performance.

During the adverse period of time, the Board has remained dedicated to the management of the business of the Group, and reacted decisively as well as positively to these challenges. In anticipation of the lower demand for its products due to the unfavourable factors disclosed above, the Group proactively and strategically implemented measures by adapting its plans of business operation and reducing the cultivated area so as to minimise the adverse impacts of these unfavourable factors on the Group’s business and results of operations.

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Based on the preliminary assessment by the Board, it is currently expected that the Group will record a net loss for the financial years ended 30 June 2012 and 2013 and for the six months’ periods ended 31 December 2011, 2012 and 2013, which are mainly attributable to (i) the decrease in average selling price of the agricultural produce which led to the decrease in the turnover and revenue of the Group; and (ii) the loss recorded as a result of the disposal or written off of the Group’s farmland infrastructure erected on the returned farmlands to the PRC government during the relevant periods.

The Board believes that the Group’s customers will regain confidence in the Group and the Group’s business and financial performance will improve after the resumption of trading in the Company’s shares on the Stock Exchange (the Resumption ).

The information contained in this announcement should only be treated as a preliminary assessment made by the Board based on the information currently available to the Group and is not based on any figures or information that has been audited or reviewed by the auditors of the Company.

Shareholders and potential investors should refer to the annual results or the interim results for the respective reporting periods, which are currently expected to be announced on or before 31 March 2014 in accordance with the tentative timetable for the Resumption set out in the Company’s announcement made on 11 December 2013.

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

Trading in the Company’s shares on the Stock Exchange will remain suspended pending the fulfillment of the conditions prescribed by the Stock Exchange for the Resumption as disclosed in the Company’s announcement dated 19 July 2013.

By Order of the Board Chaoda Modern Agriculture (Holdings) Limited Kwok Ho Chairman

Hong Kong, 17 January 2014

As of the date hereof, the board of directors of the Company comprises:

Executive directors : Mr. Kwok Ho, Dr. Li Yan, Ms. Huang Xie Ying, Mr. Kuang Qiao, Mr. Chen Jun Hua and Mr. Chan Chi Po Andy Non-executive director : Mr. Ip Chi Ming Independent non-executive : Mr. Fung Chi Kin, Mr. Tam Ching Ho and Professor Lin directors Shun Quan

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