Tan Chong International : Announcement of Financial Results for the Year Ended 30 June 2020 of Subsidiary - Zero Co., Ltd.

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.

TAN CHONG INTERNATIONAL LIMITED

陳唱國際有限公司

(incorporated in Bermuda with limited liability)

(Stock Code: 693)

ANNOUNCEMENT OF FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2020 OF SUBSIDIARY -

ZERO CO., LTD.

THIS IS NOT THE ANNOUNCEMENT OF THE FINANCIAL RESULTS OF TAN CHONG INTERNATIONAL LIMITED (THE "COMPANY"). THIS ANNOUNCEMENT IS MADE BY THE COMPANY PURSUANT TO PART XIVA OF THE SFO AND RULE 13.09(2)(a) OF THE LISTING RULES TO PROVIDE SHAREHOLDERS OF THE COMPANY WITH FINANCIAL INFORMATION ON A LISTED SUBSIDIARY OF THE COMPANY, ZERO, WHICH ON 6 AUGUST 2020 HAS FILED ITS FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2020.

This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) (the "SFO") and Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

Zero Co., Ltd. ("Zero"), a non-wholly owned subsidiary of the Company, whose shares are listed on the Second Section of Tokyo Stock Exchange, Inc. ("TSE") has on 6 August 2020 filed an earnings report with TSE which contains the financial results of Zero and its subsidiaries ("Zero Group") for the year ended 30 June 2020, in accordance with the timely disclosure obligations applicable to a TSE Second Section listed company.

The financial results of Zero Group so filed and contained in the aforementioned earnings report have been prepared in accordance with International Financial Reporting Standards.

Zero has filed its aforementioned earnings report with TSE in Japanese only and such report is accessible at TSE's website (http://www.tse.or.jp). The Company has posted the English translation of the same earnings report as an overseas regulatory announcement on the websites of The Stock Exchange of Hong Kong Limited (http://www.hkexnews.hk) and the Company (http://www.tanchong.com/en/investor_relations.aspx).

The summary of the consolidated financial statements of Zero Group for the year ended 30 June 2020 together with the comparative figures of the previous corresponding financial periods as filed are provided below:

1

1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2020 (IFRS) (From July 1, 2019 to June 30, 2020)

		(1) Consolidated operating results (cumulative)												(Amounts less than one million yen are rounded down)
																														(Percentages indicate year-on-year changes)
																																		Profit attributable to		Total comprehensive
					Sales revenue			Operating income			Profit before tax	Net Income	equity shareholders		income of the fiscal
																																		of the company					year
				Millions of yen		%		Millions of yen	%		Millions of yen	%	Millions of yen	%	Millions of yen		%		Millions of yen		%
	FY2019		89,501		∆0.8					3,675	11.2						3,679	11.7	2,387	43.5		2,374		43.52			2,375		87.9
	FY2018		90,228		10.9					3,305	∆19.7						3,294	∆19.5	1,663		∆21.3		1,658		∆22.1			1,264		∆43.9
								Basic earnings of this			Diluted earnings of this year		Profit ratio attributable to		Total capital profit ratio			Sales revenue operating
								year per share						per share						equity shareholders of the				before tax								profit ratio
																										company
												Yen											Yen						%							%									%
	FY2019							142.30									141.98						9.9							8.8									4.1
	FY2018							99.74									99.58						7.3							8.5									3.7
		(Reference) Investment gain / loss through equity method;			FY2019: 56 million yen, FY2018: 32 million yen
		(2) Consolidated financial position
																										Equity attributable to equity		Equity ratio attributable				Equity per share
																													attributable to equity
								Total assets						Total capital							shareholders of the		to equity shareholders of
																						shareholders of the
																												company				the company
																																						company
									Millions of yen					Millions of yen						Millions of yen							%									Yen
	FY2019							44,514								24,894						24,864					55.9					1,490.16
	FY2018							39,554								23,072						23,056					58.3					1,386.68
		(3) Consolidated cash flow position
								Cash flow from operating		Cash flow from investing	Cash flow from financing		Cash and cash equivalents
									activities							activities						activities				at end of year
												Million yen						Million yen				Million yen				Million yen
		FY2019										6,538										2,067				3,157					4,779
																						△				△
		FY2018										1,033																3,465
																			△2,402				△	438
2. Cash dividends
															Annual dividends per share						Total dividends			Dividend			Equity dividend
																																	(Total)		payout ratio			ratio attributable
							1st quarter-			2nd quarter-			3rd quarter-				Fiscal year-		Total
																				(consolidated)			to equity
								end				end				end						end
																																					shareholders of
																																													the company
																																													(consolidated)
								Yen						Yen					Yen						Yen			Yen				Million yen							%					%
	FY2018			---					4.00				---						20.90			24.90				419							25.0					1.8
	FY2019		---					15.00				---						20.60			35.60
																		581							25.0					2.4
	FY2020 (forecast)			---					15.00				---						19.50			34.50							---

By the order of the Board

Tan Chong International Limited

Teo Siok Ghee

Liew Daphnie Pingyen

Joint Company Secretaries

Hong Kong, 6 August 2020

Website: http://www.tanchong.com

As at the date of this announcement, the executive Directors are Mr. Tan Eng Soon, Mr. Glenn Tan Chun Hong, Mr. Tan Kheng Leong and Mdm. Sng Chiew Huat. The non-executive Director is Mr. Joseph Ong Yong Loke. The independent non-executive Directors are Mr. Ng Kim Tuck, Mr. Azman Bin Badrillah, Mr. Prechaya Ebrahim and Mr. Teo Ek Kee.

2