Solartech International : INT'L<01166> - Announcements and Notices - - POSITIVE PROFIT ALERT

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SOLARTECH INTERNATIONAL HOLDINGS LIMITED ݋௱છٰϞࠢʮ̡*

(Incorporated in Bermuda with limited liability)

(Stock Code: 1166)

POSITIVE PROFIT ALERT FOR THE SIX MONTHS

ENDED 31 DECEMBER 2017

This announcement is made by the Company pursuant to Rule 13.09(2)(a) of the Listing Rules and the Inside Information Provisions under Part XIVA of the SFO.

The Board wishes to inform the shareholders of the Company and potential investors that based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 31 December 2017, it is expected to record a profit attributable to the owners of the Company for the six months ended 31 December 2017 as compared to the loss attributable to the owners of the Company for the six months ended 31 December 2016.

The information contained in this announcement is only a preliminary assessment by the Board based on the information currently available and the unaudited consolidated management accounts of the Group, which have not been reviewed, confirmed nor audited by the Company's independent auditors.

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

This announcement is made by Solartech International Holdings Limited ݋௱છٰϞࠢʮ̡* (the "Company", and together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) 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 in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").

*For identification purposes only

The board of Directors of the Company (the "Board") wishes to inform the shareholders of the Company and potential investors that based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 31 December 2017 (the "Relevant Period"), it is expected to record a profit attributable to the owners of the Company for the Relevant Period as compared to the loss attributable to the owners of the Company for the six months ended 31 December 2016 (the "Corresponding Period"). Based on the relevant information currently available to the Company, the Board considers that the expected turnaround from loss to profit attributable to the owners of the Company was mainly due to the following factors:

(i) an increase in gross profit;

• (ii) a decrease in general and administrative expenses due to the equity-settled share-based payment expenses of approximately HK$17,919,000 recorded in the Corresponding Period as a result of the grant of 113,380,000 share options in October 2016;

• (iii) a profit from the change in fair value and loss on disposal of financial assets at fair value through profit or loss recorded for the Relevant Period as compared to the loss arising from change in fair value and loss on disposal of financial assets at fair value through profit or loss of approximately HK$20,088,000 recorded in the Corresponding Period;

• (iv) a decrease in the imputed interest on the promissory note; and

• (v) currency exchange gain due to the appreciation of Renminbi during the Relevant Period.

As the Company is still in the course of preparing its interim results for the six months ended 31 December 2017, the information contained in this announcement is only a preliminary assessment by the Board based on the information currently available and the unaudited consolidated management accounts of the Group, which have not been reviewed, confirmed nor audited by the Company's independent auditors. The overall financial results of the Group for the six months ended 31 December 2017 will only be ascertained when all the relevant results and corresponding treatments are finalised. The interim results of the Group for the six months ended 31 December 2017 will be announced by the Company on 27 February 2018. Shareholders of the Company and potential investors are advised to read the interim results announcement of the Company when it is published.

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

On behalf of the Board

Solartech International Holdings Limited

Chau Lai Him

Chairman and Managing Director

Hong Kong, 22 February 2018

As at the date of this announcement, the executive Directors are Mr. Chau Lai Him, Mr. Zhou Jin Hua, Mr. Liu Dong Yang and Mr. Chau Chi Ho and the independent non-executive Directors are Mr. Chung Kam Kwong, Mr. Lo Wai Ming and Mr. Lo Chao Ming.