Tongda : BUSINESS UPDATE - OPERATING POSITION FOR THE THREE MONTHS ENDED 31 MARCH 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 698)

BUSINESS UPDATE

OPERATING POSITION FOR THE THREE MONTHS ENDED

31 MARCH 2021

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 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 of directors (the "Board") of the Company hereby presents the operating performance for the three months ended 31 March 2021 (the "Period") to shareholders and potential investors of the Company. Based on the unaudited consolidated management accounts of the Group, the turnover of the Period was HK$2,287 million, which has increased by 37.6% as compared to HK$1,662 million for the corresponding period of last year.

		For the period ended 31 March
Turnover	2021	2020		Changes
	HK$ million	Proportion	HK$ million	Proportion	HK$ million	(%)
Handset casings and
high-precision
components business	1,659	72.5%	1,299	78.2%	360	27.7
Non-handset business	628	27.5%	363	21.8%	265	73.0
Total turnover	2,287	100.0%	1,662	100.0%	625	37.6

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During the Period, the Group provided international handset customer with newly launched smart accessories. The exchange rate of RMB continued to increase during the Period, with the relatively low utilisation rates of production capacity of the Group that was newly expanded for customer and the need of pre-investment in R&D for new products have led to the increase in operational cost during the Period. In order to cope with the challenging market environment, the Group has continuously optimized the production process and increased products yield rate. With the gradual launch of new handset models by different brands, the Group expected that the above-mentioned investment will also be able to promote the overall business development.

The Board hereby reminds shareholders and potential investors that the above information were prepared based on the unaudited consolidated management accounts of the Group which have neither been reviewed nor audited by the auditors of the Company. The operational information for the Period may not reflect the overall performance of the Group for a complete reporting period.

Shareholders and potential investors of the Company are advised not to place undue reliance on the aforesaid information and they are advised to exercise caution in dealing in the securities of the Company.

By Order of the Board

Tongda Group Holdings Limited

Wang Ya Nan

Chairman

Hong Kong, 30 April 2021

As at the date of this announcement, the Board comprises Mr. Wang Ya Nan, Mr. Wang Hung Man, Mr. Wong Ming Sik, 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, SBS, JP and Mr. Ting Leung Huel Stephen as independent non-executive Directors.

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