Town Ray : UPDATE ON THE USE OF PROCEEDS FROM THE LISTING; AND SUPPLEMENTAL ANNOUNCEMENT TO 2019 ANNUAL REPORT

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(STOCK CODE: 1692)

UPDATE ON THE USE OF PROCEEDS FROM THE LISTING; AND

SUPPLEMENTAL ANNOUNCEMENT

TO 2019 ANNUAL REPORT

References are made to the section headed ''Future Plans and Use of Proceeds'' of the prospectus of Town Ray Holdings Limited (the ''Company'', together with its subsidiaries, the ''Group'') dated 15 October 2019 (the ''Prospectus'') and the paragraph headed ''Management Discussion and Analysis - Use of Proceeds'' in the 2019 annual report of the Company published on 17 April 2020 (the ''2019 Annual Report''). Unless otherwise defined, capitalised terms used herein shall have the same meanings as those defined in the Prospectus and the 2019 Annual Report.

This announcement is made to provide update to the use of proceeds from the Listing and supplemental information to the 2019 Annual Report.

As disclosed in the 2019 Annual Report, the net proceeds from the Listing, after deducting underwriting fees and related expenses relating to the Listing were approximately HK$90.7 million (the ''Net Proceeds''). As at 31 December 2019, approximately HK$0.9 million of the Net Proceeds had been utilised by the Group according to the allocation set out in the Prospectus.

As at the date of this announcement, the Group utilised approximately HK$9.4 million of the Net Proceeds and the unutilised Net Proceeds amounted to approximately HK$81.3 million (the ''Unutilised Net Proceeds''). Having considered the recent business environment and development of the Group, in particular, the adverse impact of the outbreak of the coronavirus pandemic (the ''Pandemic'') to the economy and business environment and the consumers' demand in areas where the major customers of the Group are located, the Board resolved to revise the schedule of the use of the Unutilised Net Proceeds. The Board is of the view that this expected timeline would be appropriate and in the interest of the Company and the shareholders as a whole.

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Details of the use of the Net Proceeds and the expected timeline for the intended use of the Unutilised Net Proceeds are as follows:

					Unutilised
			Utilised amount	Net Proceeds
	Total Planned	as at the date	as at the	Expected
	use of	of this	date of this	timeline for the
	Net Proceeds	Announcement	Announcement	intended use
	(HK$ million)	(HK$ million)	(HK$ million)
Upgrading production facilities and							By
enhancing production capacity	50.4		5.3	45.1		December 2021
Strengthening product design and
development capabilities and increasing							By
product offerings	31.6		3.1	28.5		December 2022
							By
Strengthening customer base	3.0		0.9	2.1		December 2022
Upgrading information technology systems	5.7		0.1	5.6		By June 2022
	90.7		9.4	81.3

The Board confirms that there is no material change in the business nature of the Group as set out in the Prospectus and considered that the expected timeline for Unutilised Net Proceeds will not have any material adverse impact on the operations of the Group. Save as disclosed above, there is no other material change to the use of the Net Proceeds as disclosed in the Prospectus.

The Board confirms that the above supplemental information does not affect other information contained in the 2019 Annual Report and, save as disclosed above, the contents of the 2019 Annual Report remains accurate and correct.

By order of the Board

TOWN RAY HOLDINGS LIMITED

Chan Kam Kwong Charles

Chairman and non-executive Director

Hong Kong, 23 July 2020

As at the date of this announcement, the Board comprises Mr. Chan Wai Ming, Mr. Chiu Wai Kwong, Ms. Tang Mei Wah and Mr. Yu Kwok Wai as executive Directors; Dr. Chan Kam Kwong Charles and Ms. Cheng Yuk Sim Connie as non-executive Directors; and Mr. Chan Ping Yim, Mr. Choi Chi Leung Danny and Mr. Chan Shing Jee as independent non- executive Directors.

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