Automated : Positive Profit Alert

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AUTOMATED SYSTEMS HOLDINGS LIMITED

(Incorporated in Bermuda with limited liability)

(Stock Code: 771)

POSITIVE PROFIT ALERT

This announcement is made by the Company pursuant to Rule 13.09(2)(a) of the Listing Rules and the Inside Information Provisions.

The Board wishes to inform shareholders of the Company and potential investors that the Group is expected to record increases of 20%, 40% and 60% in the revenue, gross profit and net profit, respectively, for the year ended 31st December 2018 as compared to last year.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

This announcement is made by Automated Systems Holdings Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "Inside Information Provisions").

The board of directors of the Company (the "Board") wishes to inform the shareholders and potential investors, based on the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31st December 2018 and the information currently available to the Company, the Group is expected to record increases of 20%, 40% and 60% in the revenue, gross profit and net profit, respectively, for the year ended 31st December 2018 as compared to last year. The Board believes that, the expected significant increases in the revenue, gross profit and net profit of the Group are mainly attributable to:

(i)the regular business in Europe and the United States, since the annual results of a subsidiary of the Company, Grid Dynamics International, Inc. ("Grid Dynamics"), were consolidated into the consolidated financial statements of the Group for the year ended 31st December 2018, while merely the results of Grid Dynamics for the period from 7th April 2017 to 31st December 2017 were consolidated into the consolidated financial statements of the Group for last year; as well as the business growth, the revenue of Grid Dynamics recorded an increase of more than 70% and a significant increase in gross profit, as compared to last year;

• (ii) the revenue of the Group's regular business in Hong Kong, Macau and Asia Pacific recorded an increase of more than 7% and an improvement in gross profit margin, as compared to last year; and

• (iii) as a whole, the service revenue recorded an increase of more than 28% as compared to last year by restructuring the focused three major information technology services.

The net profit for the year ended 31st December 2018 has included the equity-settled share-based payment expenses of approximately HK$20,000,000 incurred for the grant of share options of Grid Dynamics on 12th November 2018 while the net profit for the year ended 31st December 2017 had included the one-off professional fees of approximately HK$9,000,000 incurred for the acquisition of Grid Dynamics.

The Company is still in the process of preparing and finalizing the annual results of the Group for the year ended 31st December 2018. The information contained in this announcement is only a preliminary assessment made by the Board based on the information currently available to the Company and is not based on any figures or information that has been audited or reviewed by the Company's auditor or the Audit Committee of the Company. The Group's annual results for the year ended 31st December 2018 will be disclosed in the announcement of the Company which is expected to be released in March 2019.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

Automated Systems Holdings Limited

Ngan Wai Hing

Company Secretary

Hong Kong, 22nd January 2019

As at the date of this announcement, the Board comprises Mr. Wang Weihang and Mr. Wang Yueou being Executive Directors; Mr. Li Wei and Mr. Cui Yong being Non-Executive Directors; and Mr. Pan Xinrong, Mr. Deng Jianxin and Ms. Or Siu Ching, Rerina being Independent Non-Executive Directors.