Wai Chi : Announces Unaudited Annual Results Profit for the Year Attributable to Owners of the Company Grew 66.3% Record-high Sales of the Automobile Onboard Display Backlights Steady Development in Semiconductor Memory Chip Testing and Packaging Business

【For immediate release】

(Stock Code: 1305.HK)

Wai Chi Holdings Announces Unaudited Annual Results Profit for the Year Attributable to Owners of the Company Grew 66.3%

Record-high Sales of the Automobile Onboard Display Backlights

Steady Development in Semiconductor Memory Chip Testing and Packaging Business

(Hong Kong, 25 March 2022)-Wai Chi Holdings Company Limited ("Wai Chi Holdings",

together with its subsidiaries collectively known as the "Group") (Stock Code: 1305.HK) is pleased to announce its unaudited annual results for the year ended 31 December 2021 ("the year under review"). The total revenue for the year under review was approximately HK$1,922,595,000, representing an increase of 37.7% compared to approximately HK$1,395,888,000 for the year ended 31 December 2020 ("2020"). Revenue from the core business sectors was approximately HK$1,603,450,000, representing an increase of 50.9% as compared to approximately HK$1,062,451,000 in 2020. Overall gross profit was approximately HK$282,197,000, increased by 42.2% from approximately HK$ 198,417,000 in 2020. Profit for the year attributable to owners of the Company amounted to approximately HK$51,469,000, an increase of 66.3% from approximately HK$30,958,000 in 2020. All products from core sectors recorded increased turnover, while semiconductor memory chip testing and packing facilities launched by the end of the year. The Group's previous chairman, the late Mr. Yiu Chi To, passed away at the beginning of 2022, and Mr. Chen Chung Po, an executive director and CEO, was then appointed chairman of the board of directors. In the announcement, the board of directors expressed gratitude to the late Mr. Yiu, while the management team vowed to continue the path towards a profitable future together.

The auditing process for the annual results of the Group for the year ended 31 December 2021 has not been completed due to the implementation of the COVID-19 pandemic prevention and control quarantine measures in certain cities in the PRC, including but not limited to being unable to obtain audit confirmation letters from banks located in PRC region.

Mr. Chen Chung Po, Chairman, CEO and Executive Director of the Group said, "COVID-19's impacts are still reaching all aspects of the global market, but the resilience of China's manufacturing industries was shown under such business environment. As a leading LED manufacturer, the Group recorded increased turnover from all core products, including backlights for automobile onboard displays, which received record-high orders, bringing significant revenue for 2021. The semiconductor memory chip testing and packaging business for which we had been laying a foundation for years also completed the installation and debugging of facilities. We attribute the Group's achievements to Mr. Yiu's excellent leadership in the past decades. The board of directors and management team will continue Mr. Yiu's path

and lead the Group with caution and tenacity."

The revenue from one of the Group's major business segments, sales of LED backlight products, was approximately HK$1,454,015,000 (2020: approximately HK$988,091,000), representing an increase of 47.2%. Such increase was mainly contributed by the record-high sales of the automobile onboard display backlights and the steady increase from television and other industrial equipment displays, which grew 8.1% and 4.1%, respectively.

The revenue from the Group's other major business segment, LED lighting services, was approximately HK$149,435,000 (2020: approximately HK$74,360,000), representing an increase of 101.0%, attributable to an increase in revenue from both public and commercial lighting segments, which amounted to approximately HK$6,101,000 (2020: approximately HK$2,559,000) and HK$143,334,000 (2020: approximately HK$71,801,000), respectively. The increase in the Group's public lighting business was mainly due to an increase in the education lighting projects during the year. At the same time, the commercial lighting segment was driven primarily by orders from overseas, especially European clients, who increased order volume to strengthen their stockpile to be fully prepared for any possible supply disruptions.

The Group's R&D centre is located at its production plant in Huizhou, providing strong technical and R&D support for its business. The Group has achieved a number of technological advancements and breakthroughs over the years, and as of 31 December 2021, the Group holds 209 patents registered in the PRC.

Mr. Chen Chung Po, Chairman, CEO and Executive Director of the Group concluded, "We are pleased with our performances in 2021 and we expect the demand for our current core products to last for some time in the future. We will fully utilize our technological advantages and experiences in the industry to grasp opportunities in the market. The newly launched semiconductor memory chip testing and packaging facilities will also allow us to catch the profitability in the robust chip market and create more income for the future."

About Wai Chi Holdings Company Limited (Stock Code: 1305.HK)

Wai Chi Holdings Company Limited is an established LED products manufacturer focusing on producing LED backlight and LED lighting products on an OEM and ODM basis. Equipped with comprehensive production facilities in Shenzhen, Huizhou and Yichang in the PRC, the Group is capable of handling the requisite production procedures (including product design, mould production, mass production and quality control and maintenance) for LED backlight products and LED lighting products. The Group recently expanded its business into the semiconductor memory chips filed to capture the growing demand in the market. The Group was listed on the Main Board of The Stock Exchange of Hong Kong Limited in November 2014 and its stock code is 1305.HK.

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