IPE : PROFIT ALERT

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IPE GROUP LIMITED

國際精密集團有限公司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 929)

ANNOUNCEMENT:

PROFIT ALERT

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.

The Board wishes to inform the Shareholders of the Company and potential investors that due to the effect of the COVID-19 pandemic on the first half of 2020, the net profit after tax for the half year ended 30 June 2020 was relatively low. In 2021, as the effect of the pandemic fades, the net profit after tax of the Group for the half year ended 30 June 2021 is expected to record improved performance and recover to the level before the pandemic.

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

This announcement is made by IPE Group 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 Part XIVA of the Securities and Futures Ordinance, Cap. 571 of the Laws of Hong Kong ("SFO").

• For identification purpose only

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The board of directors (the "Board") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that due to the effect of the COVID-19 pandemic for the first half of 2020, the net profit after tax for the half year ended 30 June 2020 was relatively low. As the effect of the pandemic fades, according to the preliminary review by the management of the Company over the drafted unaudited management financial information of the Group for the five months ended 31 May 2021 prepared by the management of the Company and the information currently available to the Board, the net profit after tax of the Group for the half year ended 30 June 2021 is expected to record improved performance and recover to the level before the pandemic.

The Board believes that the improvement in the net profit after tax of the Group for the half year ended 30 June 2021 was mainly attributable to the fact that the COVID-19 pandemic has been under control since the second half of 2020. As the domestic manufacturing industry in the PRC started to recover and sales orders of the Group were rebounded, such growth continued through the first half of 2021, where the gross profit recovered to the level before the pandemic with the greater economics of scale as a result of growth in sales, and the effective cost control measures implemented by the management.

The Company will continue its effort to raise its production capacity, reduce costs and expand its sales network, in order to increase the earnings of the Company.

The information disclosed in this announcement is only based on preliminary assessment with reference to the information currently available to the management of the Company, including the unaudited management accounts of the Group for the five months ended 31 May 2021, which have not been reviewed by the audit committee of the Company. For details of the Group's performance, Shareholders and potential investors of the Company are advised to refer to the interim results of the Group for the six months ended 30 June 2021, which will be announced in August 2021.

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

By Order of the Board

IPE Group Limited

Zeng Guangsheng

Chairman

Hong Kong, 16 June 2021

As at the date of this announcement, the Board comprises two executive Directors, namely Mr. Zeng Guangsheng (Chairman & Chief Executive Officer) and Mr. Ng Hoi Ping; two non-executive Directors, namely Ms. Zeng Jing and Mr. Chen Kuangguo; and three independent non-executive directors, namely, Mr. Yang Rusheng, Mr. Cheung, Chun Yue Anthony and Mr. Mei Weiyi.

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