Shenguan : 829.HK) Announces 2021 Annual Results - Active R&D promotion of new technologies and products and double growth in revenue and net profit

[For Immediate Release]

29 March 2022

Shenguan Holdings（Group）Limited

神冠控股（集團）有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 829.HK)

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Shenguan Holdings (829.HK) Announces 2021 Annual Results Active R&D promotion of new technologies and products and double growth in revenue and net profit

(29 March 2022 - Hong Kong) - Shenguan Holdings (Group) Limited ("Shenguan Holdings" or the "Company", together with its subsidiaries, the "Group", stock code: 829), hereby announces the annual results for the year ended 31 December 2021 (the "Reporting Period").

During the Reporting Period, the Group's revenue increased by approximately 21.5% from approximately RMB961.6 million in the year 2020 ("Previous Year") to approximately RMB1,168.1 million in the current year. The increase was mainly due to the economy recovery in the PRC as the epidemic was gradually brought under control, and the significant increase of sales volume of casings as compared to the Previous Year with the gradual recognition of the new imitated natural casing products from customers. Gross profit margin increased from approximately 24.9% in the Previous Year to approximately 26.6% in the current year. Profit attributable to owners of the Company increased by approximately 35.1% from approximately RMB90.8 million in the Previous Year to approximately RMB122.7 million in the current year. The board of directors is pleased to propose a final dividend of HK2.0 cents per share and a special final dividend of HK4.0 cents per share.

During the Reporting Period, the Group has been making efforts to promote the R&D of new technologies and products in the grand health industry, including collagen food products, collagen skin care products and collagen medical devices, as well as the market development, and the results havegradually emerged. In the area of collagen casings, the imitated high-end natural casing products developed by the Group have gradually gained consumer recognition. In addition, the Group also expanded the range of calibre of the casings supply from 13mm-50mm to 10mm-50mm and the sales volume of casings increased substantially as compared with that of 2020, which hit a record high over the past five years, showing the good results achieved in the Company's continuous development of new products.

Looking ahead, the development strategy of the Group will mainly include:

(1) Continuing to focus on the stability of product quality, accelerating the renovation and improvement of the production line of imitated high-end natural casings, enhancing its production capacity, increasing the sales ratio of new products such as imitated high-end natural casings, large-sized diametrical and small-sized diametrical casings to meet the needs of the sausages industry to adjust the product structure., and continuing to upgrade environmental protection equipment and facilities, so that the capacity of environmental protection processing can keep pace with production needs. (2) Continuing to improve the equipment and supporting facilities required for the mass production of various products including collagen oatmeal and collagen rice noodles. At the same time adjusting the marketing strategy and expanding the marketing team, and striving to achieve better performance.

(3) Strengthening the development of collagen skin care product chain and increase the development of several "COLL-FULL" new products series and promote the sales of multiple products. At the same time, putting more efforts in advertising and sales planning, and fully promote online (e-commerce, micro commerce) and offline sales.

(4) Further intensifying the research on medical collagen to produce products with higher purity, better activity and lower cost. At the same time, promoting the clinical trial of the Type III medical device of the "collagen bone filling biomaterials (artificial bone) "(膠原蛋白骨填充材料(人工骨)), and endeavour to enter clinical trials of "medical beauty product (small beauty needle)" (醫美產品 (小美容針)) and "Collagen Wound Dressing" (膠原蛋白傷口敷料) as soon as

possible.

Ms. Zhou Yaxian, Chairman of the Group said, 2022 is the second year of the "Fourteenth Five-Year Plan" implementation by the Group. We will focus on the guiding philosophy of "strengthening core to supplement production capacity and promoting the high-quality development of the three major sectors". In

2022, the Group expects the epidemic will still pose impact on the global economy, and we will also face pressures such as rising raw material prices, rising transportation costs, and higher requirements for product applicability of the Group's products due to customer products transformation and upgrading.

Against the complicated economic environment, the Group remains confident and determine to improve the production and operation in 2022. The Shenguan team continue to endeavour and propel the continuous growth of grand health industry of Shenguan and speed up the development of " Three Developments and One Core", so as to provide better investment returns to our shareholders.

-End-

About Shenguan Holdings (Group) Limited

Shenguan Holdings is a manufacturer specialized in collagen products, committed to the development of its core collagen technologies, and engaged in the manufacture and sale of collagen products in the PRC. The Group has started to expand its business to collagen food products, collagen skin care products and collagen medical devices since 2015. The Group is listed on the main board of The Stock Exchange of Hong Kong Limited.

For further details of Shenguan Holdings, please refer to its website:www.shenguan.com.hk/

This press release is issued by Wonderful Sky Financial Group Holdings Limited on behalf of Shenguan Holdings (Group) Limited.

For details, please contact:

Wonderful Sky Financial Group Holdings Limited Ms. Kimmy Yang / Ms. Karina Li

Tel: (852) 3970 2161/ (852) 3970 2210

Fax: (852) 2865 1638

E-mail:kimmyyangj@wsfg.hk/ karinalilk@wsfg.hk