Profit Attributable to Owners of the Company Surged by 40.5% to RMB 234 Million Operating cash flow significantly improved Benefiting From the Development of 5G Mobile Communication Facilities and Expansion of 4G Base Stations

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TRIGIANT GROUP LIMITED

俊知集團有限公司*

(Stock Code: 1300.HK)

2019 Interim Results

Profit Attributable to Owners of the Company Surged by 40.5% to RMB 234 Million

Operating cash flow significantly improved

Benefiting From the Development of 5G Mobile Communication Facilities

and Expansion of 4G Base Stations

Financial Highlights

(28 August 2019 - Hong Kong) China leading provider of telecommunication transmission products and solutions - Trigiant Group Limited ("Trigiant" or together with its subsidiaries, the "Group", stock code: 1300.HK), is pleased to announce its interim results for the six months ended 30 June 2019 ("Period").

*For identification only

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Interim Results

In the first half of 2019, the long-awaited 5G commercial licensing was eventually approved in the market, it benefited the whole industry to become more mature. As a supplier of core products used to construct base stations for the 5G application, the Group become one of the first enterprises benefiting from the 5G commercial licensing. Since there is significant increase in power usage in 5G base stations than in 4G, the sales volume of the Group opto-electronic hybrid cable, flame-retardant flexible cable and other products used in base stations would significantly improve. It is expected that 4G and 5G still need long-term coexistence in a long period of time, and 4G network is still the most important foundation carrying network of operators, the construction of 5G base stations will establish in focused areas and hot spots and continuous to spread-out. In September 2018, the Group won the bid of base station power project from China Mobile for the first time. During the Period, as flame-retardant flexible cable products were gradually delivered, the sales of which increased significantly. On the other hand, the Group also won the bid of opto-electronic hybrid cables (active) for 5G from Huawei (used in Massive MIMO antenna), and benefiting from the increasing demand for 5G development and expansion of 4G mobile communication coverage, the turnover of the Group's main products all recorded significant growth, which contributed to an increase of approximately 25.1% in our turnover from approximately RMB 1,682.1 million in the first half of 2018 to approximately RMB 2,104.2 million in the first half of 2019. While our turnover enjoyed a steady growth, the Group actively adjusted its product mix with a view to generating greater profits. During the Period, the Group's overall gross profit grew by approximately 24.3% from approximately RMB 327.3 million in the first half of 2018 to RMB 406.9 million. The profit attributable to owners of the Company increased by approximately 40.5% from approximately RMB166.2 million for the first half of 2018 to approximately RMB233.5 million for the first half of 2019. Basic earnings per share increased by RMB3.76 cents from approximately RMB9.28 cents for the first half of 2018 to approximately RMB13.04 cents for the first half of 2019. During the Period, the Group's operating cash flow turned has improved significantly; the net cash used in the operating activities in the first half of 2018 was approximately RMB 38.1 million, whereas the net cash generated from operating activities in the first half of 2019 was approximately RMB 155.7 million, the aging of the trade receivable has improved continuously.

Review on key products

Mobile communications series - approximately 42.6% of the total turnover

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Benefiting from the steady growth of mobile communication network construction, the sales volume of the Group's feeder cable series products increased by approximately 5,900 kilometres to approximately 94,500 kilometres as compared to the corresponding period in last year. The turnover of feeder cable series increased by approximately 3.1% to approximately RMB 896.4 million for the Period as compared to the corresponding period in last year. The gross profit margin maintained at approximately 20.7%.

Optical fibre cable series - approximately 30.3% of the total turnover

The turnover of optical fibre cable series products increased by approximately 23.1% to approximately RMB 636.8 million as compared to the corresponding period in last year. Sales volume increased by approximately 879,000 fibre kilometres to approximately 6,038,000 fibre kilometres as compared to the corresponding period in last year.

Flame-retardant flexible cable series - approximately 21.9% of the total turnover

Flame-retardant flexible cable series are one of the major supporting product for mobile communication base stations, are mainly used as an solution of power supply of mobile communication base stations. Due to accelerated development in the 5G mobile communication infrastructure, the turnover grew by approximately 75.4% to approximately RMB460.4 million for the Period as compared to the corresponding period in last year.

Prospects and future plans

With the issuance of 5G commercial licenses, it implies that China will enter the 5G era. However, there is still wide room for development in 4G construction. The MIIT and the State-owned Assets Supervision and Administration Commission of the State Council jointly issued a 2019 special action notice to continue to support the construction of 4G base stations in administrative villages and remote areas, so as to achieve a 4G coverage rate of over 98% in administrative villages. The Group expects the demand for 4G construction to remain continuously. 4G and 5G still need long-term coexistence, the demand of overall mobile communication infrastructure continues to rise, which will benefit the Group's business development in the long run.

As the significant infrastructure expansion of 5G telecommunication operators, the power usage of the Massive MIMO antenna in 5G is significantly higher as compare to 4G (2.5-4 times from a

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research). The Group expects that the construction of 5G base stations will significantly increase in sales value of base stations related products such as opto-electronic hybrid cable, flame-retardant flexible cables and radio frequency components.

The Group will continue to deepen the cooperation with the three major telecommunications operators. With excellent service and after-sales capabilities, the Group can shares a large proportion in terms of supply in the cooperation. In addition, upon the completion of the acquisition of a sensing company by the Group in 2018, the Group further expanded its product line. The Group will proactive expansion of the Internet of Things and sensor businesses and got a head start in industry development. In the second half of the year, the Group will continue to enhance its management and optimize its balance sheet to lower its debt ratio. The Group will also continue to pay attention to overseas development opportunities in the future, many countries around the world are actively promoting 5G construction and strengthening the scale of 4G networks. The Group, through our distributors, participated communication network construction with telecommunication operators in Korea, India, Russia, the Middle East and Southeast Asia, and provided system solutions and products to them. The Group can explore more new developments and opportunities, so as to create more profit to reward shareholders for their support.

-END-

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About Trigiant

Trigiant Group Limited (stock code: 1300.HK) is China leading mobile communication transmission solutions (active/passive) provider. The Group mainly provides products and solutions connecting mobile communication devices to antenna, which could be applied to various areas, including 4G/5G macro base stations, small base stations, indoor coverage, subway/high-speed railway and other railway transits. Key customers of Trigiant are the three telecommunication operators in the PRC, China Tower Corporation Limited, Rosenberg, ZTE and Huawei as well as many global telecommunication operators. Revenue from the PRC's three telecommunication operators accounted for over 90% of the Trigiant's total revenue. As of 30 June 2019, there was 7.32 million mobile phone base stations in PRC (based on the statistics published by Ministry of Industry and Information Technology) and Trigiant has provided over approximately 25% wireless-edge transmission solutions and accessories. Rooted in the PRC, Trigiant is actively explore opportunities in the global market. The Group's base stations and wireless coverage transmission solutions are serving in 31 provinces, covering most cities and vast rural areas in the PRC and provides services to operators in nations and countries including of Korea, Southeast Asia, Europe, Middle East.

The strong R&D capability and leading role in establishing the new edition of mobile transmission standards endue Trigiant with unique advantages in the PRC market. In the meantime, the Group's track record has demonstrated a steady growth, supported by its extensive penetration and forward-looking strategy in the communications industry. In 2019, which is the first year of 5G era, the Group is confident to achieve rapid business growth.

This press release is issued by DLK Advisory Limited for and on behalf of Trigiant.

For further information, please contact:

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Michelle Shi (michelleshi@dlkadvisory.com)

Andrea Lin (andrealin@dlkadvisory.com)

Emily Wei (emilywei@dlkadvisory.com)

Tel ：+852 2857 7101

Fax：+852 2857 7103

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