Lee Kee : ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31ST MARCH 2017

LEE KEE ANNOUNCESANNUALRESULTS FOR THEYEARENDED31STMARCH2017 * * * * *

Highlights

• LEE KEE posted an annual profit of HK$41 million, a turnaround from a loss of HK$117 million in the previous financial year, despite mixed operating environment

• Significant growth in revenue contribution from the Group's specialty alloys and testing services, demonstrating the positive effect of LEE KEE's long-term business strategy

• New sales office in Singapore to cater for growing industrial customer base in ASEAN and to capture the potential opportunities generated from the Belt and Road Initiative

• The Board of Directors recommend the payment of dividends per share of HK$0.025 for the Financial Year (which included a final dividend of HK$0.015 and a special dividend for celebrating the Group's 70thAnniversary of HK$0.01)

(Hong Kong, 22 June 2017) - LEE KEE Holdings Limited (the "Company") (Stock code: 637), a leading solutions provider for the metals industry, today announced the consolidated results for the Company and its subsidiaries (collectively "LEE KEE" or the "Group") for the twelve months ended 31 March 2017 (the "Financial Year").

The Group faced a mixed operating environment during the Financial Year, an upturn in the global zinc and nickel markets supported the Group's margins and financial performance while the global economy still remained challenging.

Revenue for the Financial Year was HK$2,111 million, compared to HK$2,123 million in the twelve months ended 31st March 2016 ("the Comparative Period"). Tonnage sold by the Group during the Financial Year was 109,720 tonnes, compared to 117,220 tonnes in the Comparative Period.

The Group recorded a gross profit of HK$153 million and a gross profit margin of 7.3% for the Financial Year, compared to a gross loss of HK$161,000 and a gross loss margin of 0.008% for the Comparative Period. The improvement in gross profit was mainly attributed to an increase in metal prices, particularly zinc, during the Financial Year, a higher contribution from the Group's specialty alloys and testing services and a gain from the disposal of listed securities.

The Group recorded a profit attributable to equity holders of the Company of HK$41 million for the Financial Year, compared to a loss of HK$117 million during the Comparative Period.

The Board of Directors recommend the payment of dividends per share of HK$0.025 for the Financial Year (which included a final dividend of HK$0.015 and a special dividend for celebrating the Group's 70th

Anniversary of HK$0.01).

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Ms. Clara Chan, Vice Chairman and Chief Executive Officer of LEE KEE, said, "I am pleased to report LEE KEE's resilient business performance amid challenging and volatile market conditions. Along with the rebound in global metal markets, our specialty alloys business and metal testing services enabled us to deliver growing returns during the year, proving that our long-term business development strategy is the right one."

Revenue attributed to Promet Metals Testing Laboratory Limited ("Promet"), the Group's wholly-owned metals testing subsidiary and one of the very few LME Listed Sampler and Assayers based in Asia, grew significantly during the Financial Year, with demand for its construction material testing services being driven particularly by ongoing infrastructure development, which continues to boom in Hong Kong. Revenue from brokerage services provided by Horizon Commodities and Futures Company Limited ("HCF"), the Group's wholly-owned futures brokerage subsidiary, also grew well from a low base during the Financial Year as awareness of the need to manage risk related to exposure to commodity prices among companies in the industrial sector escalates.

The solid level of growth seen across these businesses during the Financial Year illustrates LEE KEE's continuous success in implementing its long-term strategy of moving up the value-chain. Its growing range of businesses and holistic and innovative services address the challenges customers face in the increasingly complex and competitive markets.

During the Financial Year, LEE KEE also opened a new office in Singapore - the Group's sixth sales office. As more and more manufacturers relocate their manufacturing capacity from mainland China to neighbouring countries due to the rising cost of production as well as incentives offered by the Government's Belt and Road Initiative, the Singapore office will enable the Group to serve these potential customers overseas while expanding its business network in the ASEAN region where many emerging manufacturing hubs are located..

Looking forward, LEE KEE will continue to focus on developing high value alloys to cater for the changing and increasingly complex needs of manufacturers. The Group will also invest further in Promet and HCF to broaden the scope of these businesses and diversify their customer bases.

Ms. Chan concluded, "Fostering and encouraging innovation within LEE KEE has been essential to maintaining our competitiveness in the fast-changing business environment. We have always believed in the power of data and information which have been our driving force in innovation and a reliable source of insight on future developments. We will complement these invaluable assets by the latest technologies to transform our business model to be one that not only enables us to grow and prosper but also strengthens our leading status in the metals industry."

About LEE KEE Holdings Limited

LEE KEE, established in 1947 in Hong Kong, is a leading solutions provider for the metals industry, which specialises in providing quality metal materials and value-added solutions to customers. With an extensive and strong portfolio of worldwide suppliers and customers, LEE KEE continues to be by far a major zinc

alloy importer in the PRC. Lee Kee Group Limited (a wholly-owned subsidiary of the Company) has been an Associate Trade member (Category 5) of the London Metals Exchange since January 2014 - the first such member based in Hong Kong.

For more information, please contact:

Henry Chow	Matthew Schultz
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Email: [e-mail]	Email: [e-mail]

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Appendix: Consolidated Income Statement

Year ended 31 March
2017	2016
HK$'000	HK$'000
Revenue	2,110,721	2,122,954
Cost of sales	(1,957,313)	(2,123,115)
Gross profit/(loss)	153,408	(161)
Other income	5,343	2,321
Distribution and selling expenses	(24,783)	(24,374)
Administrative expenses	(90,294)	(82,146)
Other net gains/(losses)	4,362	(4,922)
Profit/(loss) from operations	48,036	(109,282)
Finance income	263	500
Finance costs	(3,192)	(4,886)
Net finance costs	(2,929)	(4,386)
Profit/(loss) before taxation	45,107	(113,668)
Income tax	(3,611)	(3,104)
Profit/(loss) attributable to:
Equity holders of the Company	41,496	(116,772)
Earnings/(loss) per share
- basic and diluted (Hong Kong cents)	5.01	(14.09)