Perfect International : VOLUNTARY ANNOUNCEMENT - SETTING UP OF A WHOLESALE SUPPLY CHAIN BUSINESS

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PERFECT GROUP INTERNATIONAL HOLDINGS LIMITED ڭ೯ණྠ਷ყછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3326)

VOLUNTARY ANNOUNCEMENT -

SETTING UP OF A WHOLESALE SUPPLY CHAIN BUSINESS

This announcement is made by Perfect Group International Holdings Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis to keep shareholders and potential investors of the Company informed of the latest business development of the Group.

The board (the "Board") of directors (the "Directors") of the Company wishes to inform shareholders and potential investors of the Company that a wholly owned subsidiary of the Company, ڭ೯मᘒ(ʕ਷)Ϟࠢʮ̡ ("Perfect Jewellery China"), has recently completed the formation of a company, ᄿ؇ڭ೯๕ᓃԶᏐᗡϞࠢʮ̡ ("Perfect Yuan Dian"), with ๕ᓃमᘒ(ɪऎ)Ϟࠢʮ̡ ("Yuan Dian") and ଉέ̹੿ඩमᘒ࠯ུϞࠢʮ̡ ("Yu Ya"). To the best of the Directors' knowledge, information and belief having made all reasonable enquiry, Yuan Dian and Yu Ya and their ultimate beneficial owners are third parties independent of the Company and not connected persons with the Company and its connected persons (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited). Yuan Dian and Yu Ya have long presence in the People's Republic of China (the "PRC") jewellery market.

The key features of Perfect Yuan Dian include the followings:-

Principal activities of Perfect Yuan Dian

The principal activities of Perfect Yuan Dian include the wholesale supply chain of the jewellery and related products in the internet marketing in the PRC.

Capital commitment

Perfect Yuan Dian is a company incorporated in the PRC and is owned as to 60% by Perfect Jewellery China, 30% by Yuan Dian and 10% by Yu Ya. The total capital commitment of Perfect Yuan Dian is RMB5 million. All parties are required to contribute their respective capital on or before 31 December 2021. The capital commitment of RMB3 million by Perfect Jewellery China will be funded by its internal resources.

Representation in Perfect Yuan Dian

The Group has appointed three directors into board of Perfect Yuan Dian, representing 60% of the board members.

Reason and benefit of formation of Perfect Yuan Dian

The Group is principally engaged in designing, manufacturing and sales of high-end fine jewellery (primarily mounted with diamonds). It has been the intention of the Group to expand the jewellery business in the PRC market. Given the Group is not conversant with the internet marketing channel, it would bring long term benefit to the Group to form Perfect Yuan Dian by leveraging the experience of Yuan Dian and Yu Ya in the PRC jewellery market.

IMPLICATIONS UNDER THE LISTING RULES

As all of the applicable percentage ratios (as defined in Rule 14.07 of the Listing Rules) are less than 5% in respect of the transactions contemplated under the formation of Perfect Yuan Dian, the transactions contemplated under the formation of Perfect Yuan Dian do not constitute notifiable transaction of the Company under Chapter 14 of the Listing Rules.

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

By order of the Board

Perfect Group International Holdings Limited

Kan Kin Kwong

Chairman and executive Director

Hong Kong, 4 March 2021

As at the date of this announcement, the executive Directors are Mr. Kan Kin Kwong, Ms. Shek Mei Chun and Mr. Chung Chi Keung; and the independent non-executive Directors are Mr. Fan Chor Ho, Mr. Lee Ka Wing and Mr. Wong Wai Keung Frederick.