China Green : Announcements and Notices - Profit Warning

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CHINA GREEN (HOLDINGS) LIMITED 中國綠色食品（控股）有限公司

(Incorporated in Bermuda with limited liability)

(Stock code: 904)

PROFIT WARNING

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

The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders of the Company and potential investors that, based on information currently available to the Board and the preliminary review on the Group's unaudited consolidated management accounts for the six months ended 31 October 2018 (the "Period"), the loss attributable to owners of the Company for the Period is expected to increase substantially as compared to the loss attributable to owners of the Company of approximately RMB11,495,000 for the six months ended 31 October 2017 (the "Previous Period").

The Board considers that the substantial increase in loss attributable to owners of the Company for the Period was mainly attributable to:-

(i)the decrease in gross profit by approximately 71% and an increase in general and administrative expenses; and

(ii)

the absence of the gain on final settlement on the disposal of the entire equity interest in a subsidiary of the Company related to beverage business operations of approximately

RMB72,058,000 recorded in the Previous Period.

As the Group's unaudited interim results for the Period have not yet been finalized, the information contained in this announcement is only based on the preliminary assessment by the Board based on the information currently available, including the unaudited consolidated management accounts of the Group for the Period, which are subject to finalization and other potential adjustments, if any, and have not been audited by the Company's auditor nor reviewed by the Company's audit committee. The Group's unaudited interim results for the Period are expected to be published on 28 December 2018. Shareholders of the Company and potential investors are advised to read the interim results announcement carefully when it is published.

Shareholders of the Company and potential investors should exercise caution when dealing in the shares of the Company.

By Order of the Board

China Green (Holdings) Limited

Sun Shao Feng

Chairman

Hong Kong, 21 December 2018

As at the date of this announcement, the Board comprises two executive Directors, namely Mr. Sun Shao Feng (Chairman and Chief Executive Officer) and Mr. Wang Jinhuo; and three independent non-executive Directors, namely Mr. Wei Xiongwen, Mr. Hu Ji Rong and Mr. Zhuang Zongming.