Xiezhong International : Profit Warning

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

協眾國際控股有限公司

(Incorporated in the Cayman Islands with limited liability)

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

The board of directors (the "Board") of the Company wishes to inform the shareholders of the Company and potential investors that, based on a preliminary review of the unaudited financial information of the Group for the six months ended 30 June 2017 (the "Half-Year"), the Group is expected to record a loss attributable to the equity shareholders of the Company in the range of RMB30 million to RMB35 million for the Half-Year as compared to the profit of approximately RMB15.4 million of the six months ended 30 June 2016.

Based on information currently available to the Board, the expected loss for the Half-Year was mainly attributable to (i) the decrease in gross profit margin of the Group, which was due to the decrease in sales prices and changes in product structure resulting from changes in market demand; (ii) the increase in provision of doubtful debts brought by the credit risk arises from certain customers; (iii) the increase in bank loans which led to a significant increase in finance costs of the Group and (iv) the increase in spending on research and development recorded in income statement.

The Group is still in the process of finalizing its consolidated interim results for the six months ended 30 June 2017. As such, this announcement is made solely on the basis of a preliminary assessment by the Board with reference to the information currently available to it, including the unaudited management accounts of the Group available for the time being which have not been audited or reviewed by the Company's auditors, nor confirmed or reviewed by the audit committee of the Board. The Group's interim results for the six months ended 30 June 2017 are expected to be announced by the end of August 2017 in compliance with the Listing Rules.

By order of the Board

Chairman

Hong Kong, 10 August 2017

As at the date of this announcement, the Board comprises two executive Directors, namely Mr. Chen Cunyou and Mr. Ge Hongbing; two non-executive Directors, namely Mr. Huang Yugang and Ms. Kwok Chak Sheung; and four independent non-executive Directors, namely Mr. Lau Ying Kit, Mr. Cheung Man Sang, Mr. Zhang Shulin and Mr. Lin Lei.