Hop Fung Group Holdings Limited announced in reference to (i) the announcement of the company dated 29th April, 2022 in relation to the delay in publication of the audited annual results of the Company and its subsidiaries (collectively, the "Group") for the year ended 31st December, 2021 (the "2021 Annual Results") and annual report of the Group for the year ended 31st December, 2021 (the "2021 Annual Report"); and (ii) the announcement of the Company dated 1st April, 2022 in relation to the unaudited annual results of the Group for the year ended 31st December, 2021 (the "2021 Unaudited Annual Results Announcement"). As disclosed in the Company's profit warning announcement dated 29th March, 2022, the Group is expected to record a loss attributable to owners of the Company for the year ended 31st December, 2021 and such loss is mainly attributable to factors, among others, the recognition of impairment loss on certain property, plant and equipment in respect of the temporary suspension of production of Green Forest Paper. The recent COVID-19 surge and the implementation of COVID-19 related prevention control measures, including restrictions on travel, transportation and logistics, work from home arrangements and office closures of some of the Group's business partners in the Mainland China have been significally affected and delayed the process of preparing and gathering information and documents which are necessary for the Company's auditor (the "Auditor") to assess the impairment loss.

Consequently, it took much longer time for the Auditor to receive these information and documents and complete the audit works. Accordingly, the Company has difficulty to publish the 2021 Annual Results and 2021 Annual Report on or before 13th May, 2022. Based on the discussions with the Auditor, the Company expects to publish the 2021 Annual Results on or before 19th May, 2022 and despatch the 2021 Annual Report to the shareholders of the Company on or before 30th May, 2022.