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.

FIH Mobile Limited 富智康集團有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 2038)

ADDITIONAL INSIDE INFORMATION RELATING TO LAST PROFIT WARNING

This announcement is made by FIH Mobile Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") 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 purpose of this announcement is to provide an update on the Company's profit warning announcement dated 1 November 2017 (the "Last Profit Warning Announcement"), pending the Group finalising its audited consolidated financial results for the year ended 31 December 2017 and the publication of its 2017 final results announcement and annual report.

The Company's board of directors (the "Board") would like to inform the Company's shareholders and potential investors that following further assessment of the Group's latest unaudited management accounts and other information currently available, the Company expects the Group's turnover for the year ended 31 December 2017 to exceed US$12 billion (compared with turnover for the year ended 31 December 2016 of US$6,233,084,000). However, the Company expects the Group to record a consolidated net loss for the year ended 31 December 2017. That loss is currently expected to be around US$525 million or below (compared with consolidated net profit for the year ended 31 December 2016 of US$136,211,000), primarily as a result of various factors, including the following:

  • (1) costs relating to new business as more particularly described in the Company's announcement dated 3 April 2017;

  • (2) a net loss arising from the impairment of the Group's investment portfolio, which is currently expected to be around US$215 million or below, compared with the actual loss of US$162,499,000 for the six months ended 30 June 2017. In particular, from an accounting perspective, that full-year impairment loss provision of approximately US$215 million includes US$200 million (comprising the provision of US$160 million made as at 19 May 2017 plus the provision of US$40 million made as at 31 December 2017), representing the total impairment of the Group's US$200 million equity investment in Jasper Infotech Private Limited as more particularly described in the Company's announcement dated 19 May 2017; and (3) generally lower gross margins (please see, for example, the "outlook" section of the Company's 2017 interim report).

The Company's shareholders and potential investors should be reminded to note the fourth paragraph of the Last Profit Warning Announcement.

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

CHIH Yu Yang

Acting Chairman

Hong Kong, 20 February 2018

As at the date of this announcement, the Board of the Company comprises four executive directors, namely Mr. CHIH Yu Yang, Mr. WANG Chien Ho, Mr. HUANG Chin Hsien and Mr. YU Mingjen; one non-executive director, namely Dr. LUO Zhongsheng; and three independent non-executive directors, namely Mr. LAU Siu Ki, Dr. Daniel Joseph MEHAN and Mr. TAO Yun Chih.

FIH Mobile Limited published this content on 20 February 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 February 2018 09:00:09 UTC.

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