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PROFIT WARNINGSUPPLEMENTAL ANNOUNCEMENT

2024-06-14 00:00:00

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.New Sparkle Roll International Group Limited新耀莱国际集团有限公司 (Incorporated in Bermuda with limited liability) (Stock Code: 970) PROFIT WARNING SUPPLEMENTAL ANNOUNCEMENT This announcement is made by the Company pursuant to Rule 13.09 of 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).Reference is made to the announcement of the Company dated 27 May 2024 relating to the profit warning of the Company (the “Announcement”). Unless otherwise defined in this announcement capitalized terms used in this announcement shall have the same meanings as defined in the Announcement.The Board wishes to update the Shareholders and potential investors that based on further information currently available to the Board the expected loss attributable to owners of the Company for FY2024 is approximately HK$610 million (instead of approximately HK$170 million as stated in the Announcement) which represents an increase of approximately 11 times as compared with that of for FY2023. 1The Board considers that such expected increase in loss attributable to owners of the Company was mainly attributable to (1) the decrease in revenue and gross profit of the Group by approximately 18% and 47% respectively for FY2024. Such decrease in revenue and gross profit of the Group were mainly related to the continuing weak market sentiment and keen competition in the automotive business of the Group during FY2024 with a decrease in revenue and a significant decline in gross profit margin being expected from that business sector of the Group and impairment of inventories which mainly includes watch jewellery and fine wine; (2) impairment of goodwill and the property plant and equipment on auto dealership business of approximately HK$200 million and HK$90 million respectively which arising from significant decrease in profits on auto dealership business; (3) fair value change on investment properties of approximately HK$100 million; and (4) impairment of other intangible assets of film rights of approximately HK$40 million.The information contained in this announcement is based merely on the preliminary assessment by the Board according to the information currently available including the unaudited consolidated management accounts of the Group for FY2024 and the preliminary valuation assessments by professional valuers which have not yet been audited by the Company’s independent auditors. The Company is still in the course of preparing and finalising its annual results for FY2024 which are expected to be announced before the end of June 2024.Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company.By order of the Board New Sparkle Roll International Group Limited Wang Bangyi Chairman Hong Kong 14 June 2024 As at the date of this announcement the Company has two executive Directors one non-executive Director and three independent non-executive Directors. The executive Directors are Dr. Wang Bangyi and Mr. Qiu Peiyuan. The non-executive Director is Mr. You Yiyang. The independent non-executive Directors are Mr. Chan Man Kit Mr. Li Baochun and Mr. Gao Yafei. 2