Petro king Oilfield Services : Announcements and Notices - VOLUNTARY ANNOUNCEMENT - CERTAIN UNAUDITED KEY FINANCIAL DATA FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020

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PETRO-KING OILFIELD SERVICES LIMITED

百勤油田服務有限公司

(Incorporated in the British Virgin Islands with limited liability)

(Stock Code: 2178)

VOLUNTARY ANNOUNCEMENT

CERTAIN UNAUDITED KEY FINANCIAL DATA

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020

This voluntary announcement is made by Petro-king Oilfield Services Limited (the "Company", together with its subsidiaries, the "Group") to inform the public of certain unaudited key financial data of the Group for the nine months ended 30 September 2020 (the

"first three quarters of 2020").

The board of directors (the "Board") of the Company hereby announces certain unaudited key financial data of the Group for the first three quarters of 2020. The comparative figures for the nine months ended 30 September 2019 (the "first three quarters of 2019") are also disclosed in this announcement.

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Note: This represents the other revenue stream of the Group including manufacturing and sales of parts and accessories for medical equipment and machines producing medical supplies and metallic parts, accessories and consumables for civil aerospace equipment and telecommunication equipment.

• EBITDA denotes earnings before interest, taxes, depreciation and amortisation

Business Review

As a result of the worldwide outbreak of the Coronavirus Disease 2019 ("COVID-19") pandemic and the sharp decrease in international oil price, total revenue of the Group has decreased by approximately 12.0% from approximately HK$322.6 million in the first three quarters of 2019 to approximately HK$283.8 million for the first three quarters of 2020. In the first three quarters of 2020, the Group has recorded a loss attributable to owners of the Company of approximately HK$22.7 million (first three quarters of 2019: HK$4.1 million) and an EBITDA of approximately HK$40.6 million (first three quarters of 2019: HK$65.4 million).

The economic uncertainties caused by the COVID-19 pandemic and the low and volatile oil price environment reduced the capital and operating expenditure of oil and gas companies and resulted in a slow-down in the overall exploration and production activities, which caused delay and cancellation of tenders and orders from customers. As a result, the business of the Group, in particular revenue from well completion, has been adversely affected.

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With the gradual recovery of the economy in the People's Republic of China (the "PRC"), the business of the Group is showing an initial sign of rebound. Revenue from drilling for the first three quarters of 2020 has increased by approximately 80.5% as compared with that of the first three quarters of 2019. Revenue from production enhancement for the first three quarters of 2020 has only decreased by approximately 8.5% as compared with that of the first three quarters of 2019. Revenue from consultancy services for the first three quarters of 2020 has also increased by approximately 23.3% as compared with that of the first three quarters of 2019.

OUTLOOK

With the hope of the COVID-19 vaccine being gradually introduced and applied globally, the Group is cautiously optimistic that its business will begin to recover in the near future. In addition, with the PRC's national policy to secure national energy safety and to encourage shale gas consumption for environmental protection, major national oil companies in the PRC has set up development plans to accelerate the exploration and development of shale gas fields in the PRC. As a result, the production enhancement services, drilling services and consultancy services provided by the Group will continue to have positive prospects in the next few years.

CAUTION STATEMENT

The Board wishes to remind the shareholders of the Company (the "Shareholders") and potential investors that the above financial data is primarily based on the information currently available to the Group, including internal records and management accounts. The above financial data has not been reviewed or audited by an independent auditor or the audit committee of the Company and is not a forecast of the performance of the business of the Group. Shareholders and potential investors are cautioned not to unduly rely on such data and are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

PETRO-KING OILFIELD SERVICES LIMITED

Wang Jinlong

Chairman

Hong Kong, 30 November 2020

As at the date of this announcement, the executive directors of the Company are Mr. Wang Jinlong and Mr. Zhao Jindong; the non-executive directors of the Company are Mr. Lee Tommy and Ms. Ma Hua; and the independent non-executive directors of the Company are Mr. Leung Lin Cheong, Mr. Tong Hin Wor and Mr. Xin Junhe.

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