Silver Base : Announcements and Notices - - 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.

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 886)

PROFIT WARNING

This announcement is made by the Company pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The Board wishes to inform the Shareholders and potential investors that the Group is expected to record a loss for the year ended 31 March 2019.

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

This announcement is made by Silver Base Group Holdings Limited (the "Company", and 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 under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that based on the preliminary assessment of the unaudited consolidated management accounts of the Company, the Group is expected to record a loss for the year ended 31 March 2019.

The expected loss for the year ended 31 March 2019 of the Group is mainly due to (i) among the selling and distribution expenses for the year, there are the additions of marketing and promotion expenses of new products, the investment made for the expansion of international market business, and the expenses incurred for upgrading the internet platform and the Internet of Things projects of the Group which are one-off in nature; and (ii) the increase in finance costs for the year so as to cope with the overall long-term development.

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The management of the Company believes that the Group's future development will be benefited from, among others, the new products, expansion into new markets, and upgraded internet platform and the Internet of Things projects.

The information contained in this announcement is only a preliminary assessment by the management of the Company based on the unaudited consolidated management accounts of the Company currently available which are subject to further adjustments as suggested by the Company's independent auditors after their review. The annual results of the Company for the year ended 31 March 2019 is expected to be published by the end of June 2019.

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

By Order of the Board

Silver Base Group Holdings Limited

Liang Guoxing

Chairman

Hong Kong, 31 May 2019

As at the date of this announcement, the Board comprises Mr. Liang Guoxing (Chairman), Mr. Yan Jun (Chief Executive Officer) and Ms. Chen Xiaoxu as executive Directors; Mr. Wu Jie Si and Mr. Chen Sing Hung Johnny as non-executive Directors; and Mr. Hung Sui Kwan, Mr. Ma Lishan and Mr. Lee Kwok Keung Edward as independent non-executive Directors.

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