Tongda : BUSINESS UPDATE - OPERATING POSITION FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 698)

BUSINESS UPDATE

OPERATING POSITION FOR THE NINE MONTHS ENDED

30 SEPTEMBER 2019

This announcement is made by Tongda 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 "Stock Exchange") and the Inside Information Provisions (as defined in 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 hereby presents the operating performance for the nine months ended 30 September 2019 (the "Period") to shareholders of the Company and potential investors.

Based on the unaudited consolidated management accounts of the Group, the turnover during the Period reached HK$6,699 million, representing a growth of 1.1% as compared to HK$6,626 million for the corresponding period of last year. The Group spun off its notebook computers business, which was listed on the Main Board of the Stock Exchange on 16 March 2018. The turnover of notebook computers business for the corresponding period last year was HK$83 million, while no such revenue was recorded during the Period. When excluding such business, the turnover during the Period increased by 2.4% as compared to the corresponding period of last year.

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The turnover of the Group for the third quarter (July to September) of 2019 reached HK$2,790 million, representing a growth of 12.7% as compared to HK$2,476 million for the corresponding period of last year and an increase of 25.6% as compared to the second quarter (April to June) of 2019. The growth during the Period was mainly attributable to the increase in shipment of handset casings and high-precision components business, especially the "glastic" handset casings. This business recorded a growth of 6.5 % as compared to that of the corresponding period of last year, accounting for approximately 76.6 % of the total revenue.

For handset casings, the shipment of the Group's "glastic" back covers was in line with expectation and the Group mainly supplied fittings for the major mid-range handset models of different brands, such as Samsung,VIVO, Xiaomi, etc. The customer base of the Group currently covers the top six handset brands in the world and the Group provides comprehensive handset casings solutions, such as 2.5D/3D glastic back covers/uni-body glastic casings, metal middle frames and 2.5D/3D glass back covers, to cater for the diverse needs of its customers, which successfully increased the market share in the global handset market.

For the high-precision components business, an international customer of the Group launched three new models of handset during the Period and the Group has also supplied their high- precision handset components such as rubber molding, liquid-silicone rubber parts and high- precision injection molding parts, of which the shipment met the expectation during the Period. For the automotive business, the Group will actively strive to increase its market share this year with the good foundation laid in previous years.

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The Group will continue to devote its efforts in the R&D of new craftsmanship in the future, in order to deepen and strengthen its sound partnership with new and existing customers through developing products of higher quality and competitiveness, thereby unleashing the values of various businesses.

On 18 September 2019, the Company announced that it was considering a possible spin-off and separate listing of 廈門市通達創智實業有限公司 (Tongda (Xiamen) Smart Technology Co. Ltd*) (the "Spin-offCo"), an indirect wholly-owned subsidiary of the Company, on the ChiNext Board of the Shenzhen Stock Exchange (the "SZSE") (the "Proposed Spin-off"). The Stock Exchange has confirmed that the Company may proceed with the Proposed Spin-off and the Spin-off Co is expected to apply for the listing of its A-shares on the ChiNext Board of the SZSE in the first half of 2020.

In addition, as some of the founders of the Group have reached their retirement age, the Group has also announced changes in members of the Board during the Period. The new appointments aim to introduce more new opinions and impetus to the Board. Meanwhile, the retired Directors will remain as consultants of the Company to provide strategic advice and guidance to the Board on the Group's business and operations.

By order of the Board

Tongda Group Holdings Limited

Wang Ya Nan

Chairman

Hong Kong, 28 October 2019

As at the date of this announcement, the Board comprises Mr. Wang Ya Nan, Mr. Wang Hung Man, Mr. Wang Ming Che, Mr. Wong Ming Yuet and Mr. Hui Wai Man as executive Directors; Ms. Chan Sze Man as non-executive Director; and Dr. Yu Sun Say, GBM, GBS, SBS, JP,

Mr. Cheung Wah Fung, Christopher, and Mr. Ting Leung Huel Stephen as independent non-executive Directors.

• For identification purposes only

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