Tiande Chemical : INSIDE INFORMATION

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Tiande Chemical Holdings Limited

天德化工控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 609)

INSIDE INFORMATION

ESTIMATED FINANCIAL RESULTS FOR THE YEAR ENDING 31

DECEMBER 2019

This announcement is made by Tiande Chemical Holdings Limited (the "Company"), together with its subsidiaries (the "Group") pursuant to Rule 13.09 (2) of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company (the "Board") wishes to inform shareholders of the Company (the "Shareholders") and potential investors that based on the information currently available to the Board and preliminary review of the latest unaudited consolidated management accounts of the Group for the eleven-month period ended 30 November 2019 (the "Management Accounts"), the Group recorded a net profit attributable to owners of the Company of approximately RMB16.3 million according to the Management Accounts. Subject to the finalisation of assessments on the impairment of property, plant and equipment, the Group expects that there would be a turnaround from the net loss attributable to owners of the Company of approximately RMB61.0 million for the year ended 31 December 2018 to net profit attributable to owners of the Company for the year ending 31 December 2019. Such improvement is primarily due to (i) the Group implementing proactive sales and marketing strategies to regain its market share and to boost its sales volume, resulting in revenue increase; (ii) adopting effective cost control measures on production overhead and repositioning of jobs to streamline workflow at production plant; and (iii) implementing effective procurement strategies to contain the cost of raw materials.

The information contained in this announcement is only based on the preliminary assessment on the Management Accounts and the information currently available to the Board, which may be subject to further adjustments. The Management Accounts have not been reviewed by the independent auditor of the Company and have not been confirmed by the audit committee

of the Company. The actual financial results of the Group for the financial year ending 31 December 2019 may be different from the information disclosed herein. The final results for the financial year ending 31 December 2019 will be published in due course pursuant to the requirements of the Listing Rules.

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

On behalf of the Board

Tiande Chemical Holdings Limited

Liu Yang

Chairman

Hong Kong, 27 December 2019

As at the date of this announcement, the executive directors of the Company are Mr. Liu Yang and Mr. Wang Zijiang; the non-executive directors of the Company are Mr. Liu Hongliang and Mr. Guo Yucheng; whilst the independent non-executive directors of the Company are Mr. Gao Baoyu, Mr. Leung Kam Wan and Mr. Liu Chenguang.