SMI : FURTHER POSTPONEMENT OF BOARD MEETING AND FURTHER DELAY IN PUBLICATION OF ANNUAL RESULTS VOLUNTARY ANNOUNCEMENT - SUSPENSION OF OPERATION OF CINEMAS IN MAINLAND CHINA

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FURTHER POSTPONEMENT OF BOARD MEETING AND FURTHER DELAY IN PUBLICATION OF ANNUAL RESULTS VOLUNTARY ANNOUNCEMENT

SUSPENSION OF OPERATION OF CINEMAS IN MAINLAND CHINA

Reference is made to the announcements of SMI Holdings Group Limited (the "Company") dated 10 December 2019 and 17 December 2019 and 29 January 2020, the postponement of meeting ("Board Meeting") of the board (the "Board") of the Company and the convening of Board Meeting on Monday, 10 February 2020 for the purpose of, inter alia, approving the annual results of the Company and its subsidiaries for the years ended 31 December 2018 ("Results") and considering the payment of a dividend, if applicable.

The directors of the Company announce that there shall be a further delay in the publication of the Results. The recent outbreak of novel coronavirus pneumonia in Wuhan intensified in mainland China and in Hong Kong. The Chinese government and the Hong Kong government respectively implemented various measures including travel restrictions and new border control measures to prevent the spread of the coronavirus. Some of the offices of the subsidiaries in mainland China were temporarily closed and the Company has requested the Hong Kong main office employees to work from home. These containment efforts have impeded the Company and the Company's auditors from proceeding the audit work in schedule. The Company expects extra time to complete the audit work for finalization of the Results. The Company will work out an achievable and realistic audit schedule with the auditors and it is expected that the Board Meeting for the purpose of considering and approving the Results will be held on or before 28 February 2020.

In addition, as part of our efforts to facilitate the prevention and control of the coronavirus and ensure the health and safety of our employees and customers, the Board hereby voluntarily announces that the Company has decided to suspend operation of cinemas in the mainland China temporarily with immediate effect and resume operation depending on the development of the coronavirus and relevant government policies, the Company will make further announcements in due course.

CONTINUED SUSPENSION OF TRADING OF SHARES

Dealings in the Company's shares have been suspended with effect from 9:00 a.m. on 3 September 2018. Trading in the shares of the Company will remain suspended until further notice.

By Order of the Board

SMI Holdings Group Limited

Kenneth Jack Shang

Executive Director

Hong Kong, 5 February 2020

As at the date of this announcement, the Board of Directors comprises seven Directors, including Mr. Kenneth Jack Shang and Mr. Zhang Yong as executive Directors, Mr. Jason Chia-Lun Wang and Mr. Peter Torben Jensen as non-executive Directors and Mr. Pang Hong, Mr. Li Fusheng and Mr. Wong Shui Yeung as independent non-executive Directors.