Power Financial : INSIDE INFORMATION - POSITIVE PROFIT ALERT

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Power Financial Group Limited ᛆ۾ږፄණྠϞࠢʮ̡

(Incorporated in Bermuda with limited liability)

(Stock code: 397)

INSIDE INFORMATION - POSITIVE PROFIT ALERT

This announcement is made by Power Financial Group Limited (the "Company", 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 in the Listing Rules).

The board (the "Board") of directors of the Company (the "Directors") is pleased to announce that based on the information currently available to the Board, the Group is expected to record a profit after tax of approximately HK$40 million for the year ended 31 December 2020 ("FY2020"), as opposed to a loss after tax of approximately HK$71 million for the year ended 31 December 2019 ("FY2019").

The Directors attribute such turnaround from loss to profit for FY2020 principally to (i) a gain on the fair value changes of financial assets at fair value through profit or loss of approximately HK$22 million for FY2020 based on the preliminary valuation prepared by an independent valuer or, as appropriate, the market prices/fair values of other relevant financial assets (FY2019: loss of approximately HK$69 million); (ii) an increase in both revenue and profit in the money lending segment in FY2020, and the segment profit of which for FY2020 amounted to approximately HK$39 million (FY2019: approximately HK$30 million); and (iii) the turnaround from loss of approximately HK$27 million for FY2019 to profit of approximately HK$1 million for FY2020 in the financial services segment.

The Group is still in the process of finalising its audited consolidated financial statements for FY2020. The information contained in this announcement is only based on a preliminary assessment made by the Board with reference to the information currently available, which has not been reviewed by the audit committee of the Board or audited by the auditors of the Company and may be subject to change. Such information may also be subject to adjustment after further review and finalisation of the audited consolidated financial statements for FY2020. The shareholders and potential investors of the Company are advised to refer to the details of the Company's announcement of its final results for FY2020 to be published in or around late March 2021.

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

On behalf of the Board

Power Financial Group Limited

Choi Chun Chung, Danny Chairman and Chief Executive Officer

Hong Kong, 4 March 2021

As at the date of this announcement, the executive Directors are Mr. Choi Chun Chung, Danny and Mr. Siu Kam Chau; and the independent non-executive Directors are Ms. Chan Kar Yin, Polly, Mr. Chiu Ka Wai, Ellis and Mr. Kwok Sze Kong.