Anchorstone Holdings Limited Announces Proposed Listing on Main Board of the Stock Exchange of Hong Kong Limited

Anchorstone Holdings Limited plans to offer a total of 300,000,000 shares, subject to reallocation, comprising 30,000,000 Public Offer Shares and 270,000,000 Placing Shares, at an Offer Price range between HK$0.40 and HK$0.50 per Offer Share. The Public Offer will open at 9:00 a.m. on Wednesday, 20 June 2018 and close at 12:00 noon on Monday, 25 June 2018. The allotment results will be announced on Tuesday, 3 July 2018. Dealings in Shares on Main Board are expected to commence on Wednesday, 4 July 2018 under the stock code 1592.

WAG Worldsec Corporate Finance Limited is the Sole Sponsor. Huajin Securities (International) Limited, Pacific Foundation Securities Limited, Aristo Securities Limited act as the Joint Bookrunners; Huajin Securities (International) Limited, Pacific Foundation Securities Limited, Aristo Securities Limited and Quasar Securities Co., Limited act as the Joint Lead Managers in relation to the Share Offer.

Overview of Anchorstone

The Group is a leading and well-established subcontractor in Hong Kong specialising primarily in supply and installation of marble and granite for construction projects, with an operation history of over 22 years. As a specialist contractor in marble and granite supply and installation in Hong Kong, the Group undertakes marble and granite works for a wide range of building and property types in Hong Kong, including commercial buildings, residential buildings, hotels and public infrastructures. The Group's major suppliers and service providers include suppliers for stone blocks or slabs, cut-to-size panels, suppliers of accessories, fabricators, design company providing drawing services and installation subcontractors.

Mr. Lui Yue Yun Gary, the Executive Director, Chairman and Chief Executive Officer of Anchorstone says, "We are pleased to witness this significant milestone in the Group's history. Our proposed listing on Main Board of the HKEx will not only broaden our capital and shareholder base, but will also provide us with capital to fund our expansion plan to continue strengthening our leading position in the industry and further enhancing our competitive advantages, thereby driving the Group's long-term development."

Business Strategies

The Group has established reputation and proven track record. The Group is equipped with substantial expertise, knowhow in marble and granite and an experienced project management team. The Company aims to expand its capacity and to undertake more sizeable projects, strengthening the Group's project management team and continuing to maintain high standards of project planning, management and implementation; enhancing services and increasing sales and marketing effort to forge stronger customer relationships; and enhancing the company's information technology capabilities to improve the overall operational efficiency.

Market and Competition

According to the CIC Report, the business of marble and granite works is concentrated in Hong Kong. There were around 50 marble and granite works subcontractors in Hong Kong, with the top five companies accounting for an aggregate market share of approximately 50.8% in 2016. The Group is one of the top players in the business of marble and granite works in Hong Kong by revenue. According to the CIC Report, it is expected that there will be increasing demand for marble and granite works in Hong Kong.

For further enquiries, please contact Frement Financial Relations Limited:

Ashley KungTel: (852) 2890 8262Mob: (852) 6608 9927Email: [email protected]^[1]

Katy WongTel: (852) 2890 8262Mob: (852) 6730 0303Email: [email protected]^[2]

Vanessa Wong Tel: (852) 2890 8262Mob: (852) 6127 1953Email: [email protected]^[3]

Factsheet

Details of Share Offer:

No. of Offer Shares: 300,000,000 Shares No. of Public Offer Shares: 30,000,000 Shares (subject to adjustment)No. of Placing Shares: 270,000,000 Shares (subject to adjustment and the Over - allotment Option)Offer Price Range: Between HK$0.40 and HK$0.50 per Offer ShareBoard Lot Size: 5,000 SharesNominal Value: HK$0.01 per SharePublic Offer Period: Wednesday, 20 June 2018 - Monday, 25 June 2018Announcement of Allotment Results: Tuesday, 3 July 2018Expected Listing Date: Wednesday, 4 July 2018Stock Code: 1592

Use of Proceeds:

The net proceeds from the Share Offer, after deducting underwriting commission and estimated expenses in relation to the Share Offer, are estimated to be approximately HK$87.2 million, assuming an Offer Price of HK$0.45 per Share, being the mid-point of the indicative Offer Price range, and the Over - allotment Option is not exercised.

Use of Proceeds / % of Net ProceedsFinancing the start-up costs for awarded or potential projects: approximately 79.5%Strengthening our project management team: Approximately 3.6%Enhancing the Group's services and increasing its sales and marketing efforts: approximately 5.9%Implementing a computerised ERP system: approximately 3.0%Repaying outstanding trust receipt loan from a bank: approximately 8.0%

Track Record:

HK$ '000 Year ended 31 December 2015 2016 2017Revenue 213,303 222,141 224,793Gross profit 73,393 63,898 62,967Gross profit margin 34.4% 28.8% 28.0%Operating profit 58,629 39,592 37,224Profit before income tax 53,914 35,501 32,703Profit for the year 43,782 27,371 25,274

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References

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