Kai Yuan : BUSINESS UPDATE ON THE IMPACT OF THE CORONAVIRUS DISEASE

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KAI YUAN HOLDINGS LIMITED

開源控股有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 1215)

BUSINESS UPDATE ON THE IMPACT OF THE CORONAVIRUS DISEASE

The announcement is made by the board (the "Board") of directors (the "Directors") of Kai Yuan Holdings Limited (the "Company", which together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules (the "Listing Rules") Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited 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).

Reference is made to the announcements of the Company dated 17 March 2020, 3 April 2020, 4 May 2020, 12 June 2020, 7 July 2020, 6 August 2020, 7 September 2020, 20 October 2020, 15 December 2020, 18 January 2021 and 12 March 2021 in relation to, among other things, the temporary closure of the Paris Marriott Hotel in Paris (the "Hotel").

The Company would like to update its shareholders and investors that France has entered its third national lockdown in April 2021 for at least four weeks. The nationwide night curfew running from 7 pm to 6 am continues to be in place in France. The daily COVID-19 infection level in France remains high at nearly 40,000 cases on average. In addition, the presentation of a negative COVID-19 test result remains mandatory before boarding planes to France. Accordingly, the Board has decided to further delay the Hotel's re-opening and the earliest date to consider re-opening the Hotel will be the end of May 2021. The Board might consider further delaying the re-opening date depending on the then circumstances. Further announcement will be made by the Company as and when appropriate in accordance with the Listing Rules.

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The Group will continue to monitor the development of the COVID-19 pandemic, and will assess its impact on the operations and financial performance of the Group. The Group will take all appropriate measures as necessary, and make further announcement(s) as and when appropriate.

Shareholders and potential investors of the Company should exercise caution when

dealing in the shares of the Company.

By order of the Board

Kai Yuan Holdings Limited

Law Wing Chi, Stephen

Executive Director

Hong Kong, 8 April 2021

As at the date of this announcement, the Board comprises Mr. Xue Jian and Mr. Law Wing Chi, Stephen (both being executive Directors) and Mr. Tam Sun Wing, Mr. Ng Ge Bun and Mr. He Yi (all being independent non-executive Directors).

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