SMI Culture & Travel : Announcements and Notices - Date of Board Meeting and Profit Warning

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SMI Culture & Travel Group Holdings Limited ݋ߕ˖ʷ༷ࣚණྠછٰϞࠢʮ̡

(Incorporated in the Cayman Islands and continued in Bermuda with limited liability)

(Stock code: 2366)

DATE OF BOARD MEETING AND PROFIT WARNING

This announcement is made by SMI Culture & Travel Group 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 (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) of Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board (the "Board") of directors (the "Director(s)") of the Company hereby announces that a meeting of the Board of the Company will be held on Friday, 29 March 2019 for the purposes of, among other matters, (i) considering and approving the annual results of the Company and its subsidiaries for the year ended 31 December 2018 and publication of such results announcement; and (ii) considering the recommendation on the payment of a final dividend, if any.

The Board wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that based on the information currently available to the Board and the preliminary review of the latest unaudited consolidated management accounts of the Group, the Group is expected to record further increase in loss for the year ended 31 December 2018 (the "Current Year") as compared to the loss of approximately HK$134 million for the year ended 31 December 2017.

Based on information currently available to the Board, the expected loss for the Current Year was mainly attributable to (i) the recognition of impairment loss on the goodwill during the Current Year; (ii) the recognition of impairment loss arising from the loss allowance on the expected credit losses of the trade and other receivables after adoption of Hong Kong Financial Reporting Standard 9 "Financial Instruments" that has changed the Group's impairment model by replacing the Hong Kong Accounting Standard 39 "incurred loss model" to "expected credit losses model" in the Current Year; and (iii) the recognition of impairment loss on films rights investments during the Current Year.

The above-mentioned impairment losses are subject to change and the final figures will be set out in the annual results announcement of the Company for the year ended 31 December 2018. The Board would like to point out that the impairment losses are non-cash items and will not affect the cash flow of the Group. The Company is also of the view that the overall operation and financial position of the Group remain stable.

The Company is still in the process of finalizing the annual results of the Group for the year ended 31 December 2018. The information contained in this announcement is only a preliminary assessment by the Company based on the information available for the time being, which has not yet been reviewed by the Auditor or the Audit Committee. The annual results announcement will be published by the end of March 2019.

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

By order of the Board

SMI Culture & Travel Group Holdings Limited

YAO Qinyi

Executive Director

Hong Kong, 19 March 2019

As at the date of this announcement, the executive Directors are Mr. WU Chien-Chiang (Chairman), Mr. LI Kai and Ms. YAO Qinyi; and the independent non-executive Directors are Mr. RAO Yong, Mr. LIU Xianbo and Mr. ZHAO Xuebo.