International Mining : Royal China International Announces 2017 Interim Results

Press Release

For Immediate Release

The decrease in consolidated net profit was mainly attributable to: (i) the substantial decrease in revenue and gross profit of one-stop integrated interior design solutions arisen from intensive competition in the interior design industry; (ii) the increase of professional fees incurred for the mandatory unconditional cash offer for the shares of the Company; and (iii) the increase in the operating expenses for preparing new

businesses and general administrative purpose.

In order to broaden the Group's sources of income and to enhance its business development, after assessment of the Group's one-stop integrated interior design solutions business and various business opportunities available to the Group, the Board has decided to explore business opportunities in aviation and traveling business and financing services.

During the nine months ended 30 June 2017, the revenue derived from the design, fit out and decoration ("DFD") projects in Hong Kong amounted to HK$45.3 million. The revenue derived from the DFD projects in Hong Kong decreased due to the Hong Kong market sentiment turned amid, the possibility for increase in US interest rate and uncertainty in the economic outlook resulting in a decline in the number of sizeable DFD projects in Hong Kong.

1. Business Jet Management Business： On 12 July 2017, the Group entered into subscription agreement with BAA Jet Management Limited ("BAA"), a top business jet management company in the PRC for establish a joint venture Himalaya Business Aviation Limited (the "HBA"). HBA and a lessee (the "Lessee") of a Gulfsteam model of G550 aircraft entered into an aircraft management agreement, pursuant to which the Lessee has agreed to engage HBA to manage an Aircraft. We believe that the Group can leverage on the reputation, expertise and extensive experience of BAA to expand our business jet management business and bring positive returns to the Group. The Group is actively looking for and negotiating for potential business opportunities for our business jet management service.
2. Service of Aircraft Sales Business：On 27 July 2017, the Company and Royal China Group International Holdings Limited ("RCG") entered into an agency agreement for the provision of agency service by the Company to act as an exclusive purchase agent for RCG in its purchase of a business jet. We believe that our agency service on business jet purchase would provide an opportunity for the Group to diversify our business into service of aircraft sales and broaden our sources of income.

Because of the downturn in both macro property market and construction & design industry, the Group's business of design, fit out and decoration seems to be pessimistic. In accordance with initiative of "One belt, One road", it aims to promote the connection of infrastructure construction, strengthen economic, trade and industrial cooperation, and boost the integration in financial and other industries among more than 60

economic entities along "One belt, One road". The aviation industry will become the carrier and be benefited from the Air Silk Road, which brings tremendous development opportunities. The Group will combine its own resources and strive to explore other related business opportunities in order to create greater value for shareholders.

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Address: Suites 2608-11, 26th Floor, Champion Tower, ThreeGarden Road, Central, Hong Kong

Tel:(852) 3955 5901

Fax:(852) 3955 5900

Email: info@royalchina.hk