China Green : Announcements and Notices - Inside Information - Expected Reduction in Loss

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CHINA GREEN (HOLDINGS) LIMITED 中國綠色食品（控股）有限公司

(Incorporated in Bermuda with limited liability)

(Stock code: 904)

INSIDE INFORMATION - EXPECTED REDUCTION IN LOSS

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

The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders of the Company and potential investors that, based on the information currently available, the Group is expected to record a significant decrease in its loss attributable to owners of the Company for the six months ended 31 October 2017 (the "Current Period") as compared to the loss attributable to owners of the Company of approximately RMB269,546,000 for the corresponding period in 2016.

The expected significant decrease in loss attributable to owners of the Company for the Current Period is mainly attributable to the following factors:

(i)the respective increase of turnover of (a) fresh produce and processed products business; and (b) branded food products and others business by more than 170% and 90%;

• (ii) the improvement in gross profit margin as a result of the economies of scale resulting from the expansion of cultivation area in the existing farmland in Baicheng City; and

• (iii) gain on final settlement on the disposal of the entire equity interest in a subsidiary of the Company related to beverage business operations of approximately RMB72,000,000, details of which were disclosed in the Company's announcements dated 29 February 2016, 23 March 2016, 26 March 2017 and 9 August 2017.

The Company is still in the process of finalizing its unaudited interim results for the six months ended 31 October 2017. The information contained in this announcement is only a preliminary assessment by the Board based on the information currently available and the unaudited management accounts of the Group for the six months ended 31 October 2017, which have not yet been finalized and are subject to adjustments as appropriate. Details of the Company's financial information and performance will be disclosed in the Company's interim results announcement for the six months ended 31 October 2017, which is expected to be published on 21 December 2017. Shareholders of the Company and potential investors are advised to read the interim results announcement carefully when it is published.

Shareholders of the Company and potential investors should exercise caution when dealing in the shares of the Company.

By Order of the Board

China Green (Holdings) Limited

Sun Shao Feng

Chairman

Hong Kong, 13 December 2017

As at the date of this announcement, the Board comprises two executive Directors, namely Mr. Sun Shao Feng (Chairman and Chief Executive Officer) and Mr. Wang Jinhuo; and three independent non-executive Directors, namely Mr. Wei Xiongwen, Mr. Hu Ji Rong and Ms. Yu Xiao Min.