Ching Lee (stock code: 3728) success in transfer to Main Board, Dealing in shares on the Main Board commenced on 18th September, 2017

HONG KONG, CHINA - Media OutReach - 3 October 2017 - Ching Lee Holdings Limited is pleased to announce the success over the transfer of its shares listing on the Main Board. The last day of dealings in the Shares on GEM (Stock code: 8318) was on Friday, 15 September 2017. Dealings in the Shares on the Main Board (Stock code: 3728) have commenced at 9:00 a.m. on Monday, 18 September 2017.

The Company has been listed on GEM since 29 March 2016. The Group provides (i) substructure building work services; (ii) superstructure building work services; and (iii) RMAA work as a main contractor in Hong Kong.

The Company believes that the Transfer of Listing on the Main Board will enhance the corporate profile of the Company and improve the trading liquidity of the Shares and recognitions by potential investors. The board is convinced that the successful of the Transfer of Listing is beneficial to the future growth and development of the Group and is in the overall interests of Ching Lee and its Shareholders.

Summary of the Group's Financial Performance

HK$'000 (audited)                                                  Year ended 31 March                                            Three months ended 30 June

2015

2016

2017

2016

2017

Revenue

Cost of revenue

377,356                     475,474                  579,849                  136,189                 191,538

(328,560)                  (414,382)                (504,285)                (119,719)              (170,192)

48,796                      61,092                     75,564                    16,470                   21,346

830                            12,644                      183                          12                           14

(25,113)                    (45,861)                    (43,891)                  (8,607)                    (12,297)

(1,700)                      (1,605)                      (712)                       (106)                       (546)

22,813                       26,270                      31,144                    7,769                      8,517

(4,335)                      (5,154)                     (5,693)                    (1,324)                     (1,522)

18,478                      21,116                      25,451                     6,445                        6,995

2.31                          2.63                          2.55                          0.64                          0.70

2.31                          2.63                          2.55                          0.64                          0.70

Gross profit

Other income and gains

Administrative and other operating expenses

Finance costs

Profit before income tax

Income tax

Profit and total comprehensive

Income for the year

Earnings per share:

-        Basic (HK cents)

-        Diluted (HK cents)

Ching Lee gross profit increased by 23.7% from HKD61.1 million to HKD75.6 million YOY for the year ended 31 March 2017. The profit and total comprehensive income for the year ended 31 March 2017 amounted to HKD25.5 million from HKD21.1 million YOY, the upsurge was mainly attribute to the increase in gross profit from superstructure building work services and RMAA works services segments.

About the company

Ching Lee Holdings Limited (3728.hk) is a main contractor in Hong Kong with over 17 years of experience undertaking projects in both public and private sectors. Our major business sectors include substructure building works services, superstructure building work services and RMAA works services.