U Banquet : PROFIT GUARANTEE IN RELATION TO THE ACQUISITION OF ENVIRONMENTAL MAINTENANCE BUSINESS

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U BANQUET GROUP HOLDING LIMITED

譽宴集團控股有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 1483)

PROFIT GUARANTEE IN RELATION TO

THE ACQUISITION OF

ENVIRONMENTAL MAINTENANCE BUSINESS

Reference is made to the announcement of U Banquet Group Holding Limited (the "Company") dated 9 February 2018, 16 March 2018, 16 April 2018, 16 May 2018, 29 May 2018, 12 June 2018, 31 March 2021 (the "Announcements") and circular of the Company dated 15 June 2018 (the "Circular") in relation to the acquisition of the 51% of the issued share capital of BYL Property Holdings Group Limited. Terms used herein shall have the same meanings as defined in the Announcements unless otherwise stated.

As disclosed in the Announcements and the Circular, pursuant to the Stock Purchase Agreement, The Vendor irrevocably and unconditionally warranted and guaranteed to the Purchaser that the aggregated consolidated net profit (after taxation and excluding any profit (loss) deriving from activities not within the ordinary and usual course of business) (the "Audited Profit") of the Target Group for the three financial years ended 31 December 2020 (the "Relevant Period") as stated in the audited consolidated financial statements of the Target Group prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs"), for the Relevant Period (the "Audited Accounts") to be audited by a Hong Kong certified public accountants' firm (as approved by the Purchaser) (which shall be available on or before 31 March 2021) shall not be less than the total sum of RMB94,500,000 (the "Guaranteed Amount"). If the Audited Profit is less than the Guaranteed Amount, the Vendor shall within seven Business Days after the issuance of the Audited Accounts pay the Purchaser a compensation.

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The audited consolidated financial statement of the Target Group indicated that the Audited Profit had exceeded RMB94,500,000. Therefore the Board is pleased to announce the Guaranteed Profit of Target Group for the three financial years ending 31 December 2020 has been met.

By Order of the Board

U Banquet Group Holding Limited

Sang Kangqiao

Chairman and Executive Director

Hong Kong, 15 April 2021

As at the date of this announcement, the executive Directors are Mr. Sang Kangqiao, Mr. Xu Wenze and Mr. Cui Peng, and the independent non-executive Directors are Mr. Xu Zhihao, Mr. Lam Ka Tak and Mr. Wong Sincere.

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