Smart City Development : Announcement

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SMART CITY DEVELOPMENT HOLDINGS LIMITED

智 城 發 展 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8268)

INSIDE INFORMATION

PROFIT WARNING - SUPPLEMENTAL ANNOUNCEMENT

This announcement is made by Smart City Development Holdings Limited (the ''Company''), and together with its subsidiaries, the ''Group'') pursuant to Rule 17.10 of the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited (the ''GEM Listing Rules'') and the Inside Information Provisions (as defined in the GEM Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the Company's profit warning announcement dated 5 August 2022 (the ''Announcement''). Capitalised terms used herein shall have the same meanings as defined in the Announcement unless the context requires otherwise.

The Board wishes to further inform the Shareholders and potential investors that, based on preliminary assessment of the unaudited consolidated management accounts of the Group for the three months ended 30 June 2022, the Group is expected to record a loss for the period of not more than HK$4 million for the three months ended 30 June 2022, as compared with a profit of approximately HK$2.4 million for the corresponding period in 2021. Based on the information currently available to the Board, the loss was mainly due to (i) the decrease in operating profit in the securities investment segment of approximately HK$5.0 million, as compared to the three months ended 30 June 2021 mainly due to (a) the realised loss of approximately HK$0.1 million recorded for the three months ended 30 June 2022 (three months ended 30 June 2021 : gain of approximately HK$3.1 million) and (b) the decrease in unrealised gain on fair value change of listed equity investments of approximately HK$1.0 million; and (ii) the increase in operating loss in the construction segment of approximately HK$1.0 million, as compared to the three months ended 30 June 2021 mainly due to comparatively low gross profit margin procured in the more competitive building construction works and E&M works industry in Hong Kong in recent years, of overall 2.3% lower than last reporting period.

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The information in this announcement is only based on a preliminary assessment made by the Board with reference to the unaudited consolidated management accounts of the Group for the three months ended 30 June 2022 prepared by the management of the Company, and such information has not been reviewed or audited by the Company's independent auditor. Shareholders and potential investors are advised to refer to the details of the Group's financial results for the three months ended 30 June 2022, which are expected to be released by way of an announcement by mid-August 2022.

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

By Order of the Board

Smart City Development Holdings Limited

Hung Kenneth

Executive Director

Hong Kong, 9 August 2022

As at the date of this announcement, the Board comprises Mr. Hung Kenneth and Ms. Lau Po Yee as executive Directors and Mr. Wong Yuk Lun Alan, Mr. Lam Wai Hung and Ms. Au Shui Ming Anna as independent non-executive Directors.

This announcement, for which the directors of the Company collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company. The directors of the Company, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the ''Latest Company Announcements'' page of the GEM website at www.hkgem.com for a minimum period of seven days from the date of its publication and on the Company's website at www.smartcity-d.com.

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