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SHENGUAN HOLDINGS (GROUP) LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 00829) ANNOUNCEMENT PROFIT WARNING

This announcement is made by the Company pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance.
The Board wishes to inform the shareholders of the Company and potential investors that, based on the preliminary assessment by the Board of the unaudited management accounts of the Group and the information currently available to the Board, the Group is expected to record a decrease of approximately 43% in its net profit for the six months ended 30 June
2015 as compared to that for the same period in 2014.

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


This announcement is made by Shenguan Holdings (Group) Limited (the "Company", and 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 (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, Laws of Hong Kong) ("Securities and Futures Ordinance").
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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 preliminary assessment by the Board of the unaudited consolidated management accounts of the Group and the information currently available to the Board, the Group is expected to record a decrease of approximately 43% in its net profit for the six months ended 30 June 2015 (the "Reporting Period") as compared to that for the same period in 2014 (the "Previous Period"). Such decrease is primarily due to the following reasons:
1. During the Reporting Period, revenue decreased was mainly caused by:
(i) the decrease in sales volume due to the influence of the macro environment in the PRC, the competitive environment has become more intense, and the restricted growth of the sales of meat products; and
(ii) the decrease in average selling price due to the overall decline in prices of the products in this industry.
2. As mentioned above, the decrease in average selling price caused the gross profit margin during the Reporting Period dropped as compared to the Previous Period.
The Board considers that although the Group had adopted strict cost control, strengthen its internal control, conducted research and development of new products and implemented strategies for product diversification, the Company still recorded a decline in its results for the Reporting Period because the meat products industry is undergoing an adjustment period and the product diversification is at its initial stage. However, the overall operations of the Group remain sound and intact. The Group's overall financial position also remains healthy.
The information contained in this announcement is only based on a preliminary assessment by the Board of the unaudited consolidated management accounts of the Group and information currently available to the Board. It is not based on any data or information that has been audited or reviewed by the auditor of the Company. The Company is still in the process of finalising the unaudited results of the Group for the Reporting Period, which will be disclosed in the forthcoming interim results announcement which is expected to be published in August
2015.

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

By order of the Board

Shenguan Holdings (Group) Limited Zhou Yaxian

Chairman

Hong Kong, 24 July 2015

As at the date of this announcement, the executive Directors are Ms. Zhou Yaxian, Mr. Shi Guicheng, Mr. Ru Xiquan and Mr. Mo Yunxi; the non-executive Director is Mr. Low Jee Keong; and the independent non-executive Directors are Mr. Tsui Yung Kwok, Mr. Meng Qinguo and Mr. Yang Xiaohu.

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