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RARE EARTH MAGNESIUM TECHNOLOGY GROUP HOLDINGS LIMITED 00601 2019 2019 6 30 2019 2019 2019 9 6 www.hkexnews.hkwww.remt.com.hk 2019 8 30

CORPORATE INFORMATION DIRECTORS Executive Directors: Shum Sai Chit (Chairman and Chief Executive Officer) Chi Jing Chao Non-executive Directors: Professor Meng Jian Tam Wai Ho, Samson JP Independent Non-executive Directors: Kwong Ping Man Cheung Sound Poon Kwan Ngai Kit AUDIT COMMITTEE Kwong Ping Man (Chairman) Cheung Sound Poon Kwan Ngai Kit REMUNERATION COMMITTEE Kwong Ping Man (Chairman) Chi Jing Chao Cheung Sound Poon NOMINATION COMMITTEE Shum Sai Chit (Chairman) Kwong Ping Man Kwan Ngai Kit COMPANY SECRETARY Fan Kwok Man, Raymond AUDITORS HLB Hodgson Impey Cheng Limited 2019 1

CORPORATE INFORMATION (CONTINUED) Clarendon House 2 Church Street Hamilton HM 11 Bermuda 9 6 11 1105 Estera Management (Bermuda) Limited Canon s Court, 22 Victoria Street Hamilton HM 12 Bermuda 183 54 http://www.remt.com.hk 00601 PRINCIPAL BANKERS The Hongkong and Shanghai Banking Corporation Limited DBS Bank (Hong Kong) Limited Bank of Communication Co., Ltd REGISTERED OFFICE Clarendon House 2 Church Street Hamilton HM 11 Bermuda PRINCIPAL PLACE OF BUSINESS Suite 1105, 11th Floor Tower 6, The Gateway 9 Canton Road Tsim Sha Tsui, Kowloon Hong Kong PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE IN BERMUDA Estera Management (Bermuda) Limited Canon s Court, 22 Victoria Street Hamilton HM 12 Bermuda BRANCH SHARE REGISTRAR AND TRANSFER OFFICE IN HONG KONG Tricor Secretaries Limited Level 54, Hopewell Centre 183 Queen s Road East Hong Kong WEBSITE http://www.remt.com.hk STOCK CODE 00601 2 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

RESULTS 2019 2018 The board of directors (the Board ) of Rare Earth Magnesium Technology Group Holdings Limited (the Company or REMT ) announces the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively the Group ) for the six months ended 30 June 2019 ( Review Period ), together with the comparative figures for the corresponding period in 2018 as follows. CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 2019 6 30 For the six months ended 30 June 2019 2019 Six months ended 30 June 2018 Six months ended 30 June 2018 2019 Notes ( ) ( ) (Unaudited) (Unaudited) Continuing operations Revenue 3 726,229 795,638 Cost of sales (519,911) (592,973) Gross profit 206,318 202,665 Other income and gains, net 2,063 1,516 Selling and distribution costs (5,030) (6,924) Administrative expenses (16,159) (25,694) Finance costs 4 (37,379) (35,933) Profit before income tax 5 149,813 135,630 Income tax expenses 6 (33,518) (30,580) Profit for the period from continuing operations 116,295 105,050 2019 3

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 2019 Six months ended 30 June 2018 Six months ended 30 June 2018 2019 Notes ( ) ( ) (Unaudited) (Unaudited) Discontinued operations Loss for the period from discontinued operations 17 (1,234) Profit for the period 116,295 103,816 : Other comprehensive expenses Other comprehensive expenses to be reclassified to profit or loss in subsequent periods: Exchange differences on translating foreign operations (28,878) (34,013) Total comprehensive income for the period 87,417 69,803 ( ): Profit/(loss) for the period attributable to: Owners of the Company from continuing operations 116,295 105,050 from discontinued operation (1,193) 116,295 103,857 Non-controlling interests from discontinued operation (41) 116,295 103,816 4 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 Total comprehensive income/ (expenses) for the period attributable to: 2019 Six months ended 30 June 2018 Six months ended 30 June 2018 2019 Notes ( ) ( ) (Unaudited) (Unaudited) Owners of the Company from continuing operations 87,417 72,069 from discontinued operation (2,326) 87,417 69,743 Non-controlling interests from discontinued operation 60 87,417 69,803 Earnings per share: From continuing and discontinued operation basic and diluted 8 1.77 cents 1.58 cents From continuing operation basic and diluted 8 1.77 cents 1.60 cents 7 Details of the dividends are disclosed in note 7 to the condensed financial statements. 2019 5

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2019 6 30 At 30 June 2019 2019 2018 12 31 30 June 2019 31 December 2018 Notes ( ) ( ) (Unaudited) (Audited) NON-CURRENT ASSETS Property, plant and equipment 9 1,537,360 1,534,027 Prepaid land lease payments 51,704 52,036 Intangible assets 40,676 40,030 Mining rights 47,165 47,298 Pledged bank deposits 9,748 9,757 Total non-current assets 1,686,653 1,683,148 CURRENT ASSETS Inventories 174,609 146,419 Trade and bills receivables 10 165,792 217,980 Prepaid land lease payments 1,318 1,319 Prepayments, deposits and other receivables 346,946 177,101 Pledged bank deposits 14,975 Bank and cash balances 123,926 131,276 Total current assets 812,591 689,070 CURRENT LIABILITIES Trade payables 11 49,006 41,849 Other payables and accruals 40,716 48,570 Contract liabilities 14,710 7,799 Borrowings 12 135,486 65,706 Tax payable 21,231 8,154 Total current liabilities 261,149 172,078 NET CURRENT ASSETS 551,442 516,992 TOTAL ASSETS LESS CURRENT LIABILITIES 2,238,095 2,200,140 6 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) 2019 6 30 At 30 June 2019 2019 2018 12 31 30 June 2019 31 December 2018 Notes ( ) ( ) (Unaudited) (Audited) NON-CURRENT LIABILITIES Deferred revenue 69,710 69,772 Convertible bond 13 367,099 350,336 Borrowings 12 275,601 310,921 Deferred tax liabilities 14,791 14,742 Amounts due to shareholders 14 149,307 183,152 Total non-current liabilities 876,508 928,923 Net assets 1,361,587 1,271,217 EQUITY Capital and reserves attributable to owners of the Company Share capital 657,439 657,439 Reserves 704,148 613,778 Total equity 1,361,587 1,271,217 2019 7

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 2019 6 30 For the six months ended 30 June 2019 Attributable to owners of the Company Convertible Capital bonds Share Non- Share Share redemption Special equity option Statutory Merger Other Translation Retained controlling capital premium reserve reserve reserve reserve reserve reserve reserve reserve earnings Total interests Total HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 HK$ 00 0 2019 1 1 At 1 January 2019 (Audited) 657,439 1,560,077 419 86,548 8,364 104,882 (1,500,592) (22,233) (139,068) 515,381 1,271,217 1,271,217 Profit for the period 116,295 116,295 116,295 Other comprehensive income (28,878) (28,878) (28,878) Total comprehensive income for the period (28,878) 116,295 87,417 87,417 Transfer to reserve 5,487 (5,487) Equity settled sharebased transactions 2,953 2,953 2,953 2019 6 30At 30 June 2019 (unaudited) 657,439 1,560,077 419 86,548 11,317 110,369 (1,500,592) (22,233) (167,946) 626,189 1,361,587 1,361,587 2018 1 1 At 1 January 2018 (Audited) 657,439 1,560,077 419 (60,819) 86,548 89,427 (1,500,592) (17,058) 10,963 304,676 1,131,080 (7,836) 1,123,244 Profit for the period 103,857 103,857 (41) 103,816 Other comprehensive income (34,114) (34,114) 101 (34,013) Total comprehensive income for the period (34,114) 103,857 69,743 60 69,803 Transfer to reserve Equity settled sharebased transactions 2,209 2,209 2,209 2018 6 30At 30 June 2018 (unaudited) 657,439 1,560,077 419 (60,819) 86,548 2,209 89,427 (1,500,592) (17,058) (23,151) 408,533 1,203,032 (7,776) 1,195,256 1993 The special reserve represents the difference between the nominal value of the shares of the acquired subsidiaries and the nominal value of the Company s shares issued for the acquisition at the time of the group reorganisation prior to the listing of the Company s shares in 1993. 8 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 2019 6 30 For the six months ended 30 June 2019 2019 Six months ended 30 June 2019 2018 Six months ended 30 June 2018 ( ) ( ) (Unaudited) (Unaudited) Operating activities Profit before income tax including discontinued operations 149,813 134,396 Adjustments for: Finance cost 37,379 36,272 Equity-settled share option expenses 2,953 2,209 Share of profits and loss of joint ventures (310) Bank interest income (870) (674) Depreciation 37,042 37,919 Amortisation of intangible assets 2,332 5,960 Amortisation of mining rights 94 352 Recognition of prepaid land lease payments 466 767 Write-down of inventories to net realisable value 5,740 Reversal of impairment of other receivables (30) 229,209 222,601 Increase in inventories (28,884) (18,877) Decrease/(increase) in trade receivables 53,029 (48,547) (Increase)/decrease in other receivables (197,659) 81,114 Decrease in long-term deposits 39 Decrease in amounts due from joint ventures 436 Increase/(decrease) in trade payables 7,337 (13) (Decrease)/increase in other payables (947) 188 Increase in provision for product warranty 78 Cash generated from operations 62,085 237,019 Overseas taxes paid (20,174) (5,223) Net cash generated from operating activities 41,911 231,796 2019 9

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 2019 Six months ended 30 June 2019 2018 Six months ended 30 June 2018 ( ) ( ) (Unaudited) (Unaudited) Investing activities Interest received 870 674 Purchases of property, plant and equipment (41,820) (134,097) Decrease in pledged bank deposits 15,261 8,125 Net cash used in investing activities (25,689) (125,298) Financing activities Finance costs paid (12,039) (13,233) Proceeds from new borrowings 67,555 15,000 Increase in amount due to a non-controlling shareholder of a subsidiary 448 Repayment of borrowings (32,553) (50,900) Decrease in amounts due to shareholders (42,245) (42,861) Net cash used in financing activities (19,282) (91,546) Net (decrease)/increase in cash and cash equivalents (3,060) 14,952 Cash and cash equivalents at the beginning of the period 131,276 172,854 Effect of foreign exchange rate changes, net (4,290) (4,450) Cash and cash equivalents at the end of the period 123,926 183,356 10 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 2019 Six months ended 30 June 2019 2018 Six months ended 30 June 2018 ( ) (Restated) ( ) ( ) (Unaudited) (Unaudited) Analysis of balances of cash and cash equivalents Cash and cash equivalents as stated in the condensed consolidated statement of financial position Cash and cash equivalents included in as assets of a disposal group classified as held for sale 123,926 160,677 22,679 123,926 183,356 2019 11

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 2019 6 30 For the six months ended 30 June 2019 1. 34 16 2. 1. BASIS OF PREPARATION The condensed consolidated financial statements are unaudited and have been prepared in accordance with Hong Kong Accounting Standard ( HKAS ) 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants ( HKICPA ) and the applicable disclosure requirements of Appendix 16 to the main Board Listing Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the Listing Rules ). 2. PRINCIPAL ACCOUNTING POLICIES The Group has adopted the following revised HKFRSs for the first time for the current period s unaudited interim condensed consolidated financial statements. 16 23 9 19 28 2015 2017 HKFRS 16 HK(IFRIC)-Int 23 Amendments to HKFRS 9 Amendments to HKAS 19 Amendments to HKAS 28 Amendments to HKFRSs Leases Uncertainty over Income Tax Treatments Prepayment Features with Negative Compensation Plan Amendment Curtailment or Settlement Long-term Interests in Associates and Joint Ventures Annual Improvements to HKFRSs 2015-2017 cycle The new and amendments to HKFRSs have been applied in accordance with the relevant transition provisions in the respective standards and amendments and there is no material impact to the financial statements and/or disclosures of the Group. 12 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 3. 2019 6 30 3. SEGMENT INFORMATION The Group s primary format for reporting segment information is business segment. For the six months ended 30 June 2019 (unaudited) Continuing operations Magnesium products Corporate and others Consolidated Segment revenue: Revenue from external customers 726,229 726,229 Segment results 193,893 (7,571) 186,322 Reconciliation: Interest income 870 Finance costs (37,379) Profit before income tax 149,813 Income tax expenses (33,518) Profit for the period 116,295 2019 6 30 At 30 June 2019 (unaudited) Segment assets 2,365,570 2,365,570 Reconciliation: Unallocated assets 133,674 Total assets 2,499,244 Segment liabilities 428,542 428,542 Reconciliation: Unallocated liabilities 709,115 Total liabilities 1,137,657 2019 13

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 3. 2018 6 30 3. SEGMENT INFORMATION (CONTINUED) For the six months ended 30 June 2018 (unaudited) Continuing operations Magnesium Corporate Discontinued products and others Consolidated operation Segment revenue: Revenue from external customers 795,638 795,638 158,723 Segment results 174,854 (3,900) 170,954 (1,270) Reconciliation: Interest income 609 65 Finance costs (35,933) (339) Share of profit of joint ventures 310 Profit/(loss) before income tax 135,630 (1,234) Income tax expenses (30,580) Profit/(loss) for the period 105,050 (1,234) 2018 6 30 At 30 June 2018 (unaudited) Segment assets 2,161,494 2,161,494 223,828 Reconciliation: Unallocated assets 186,429 25,679 Total assets 2,347,923 249,507 Segment liabilities 507,663 507,663 76,069 Reconciliation: Unallocated liabilities 683,320 135,122 Total liabilities 1,190,983 211,191 14 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 4. 4. FINANCE COSTS 2019 Six months ended 30 June 2019 (Unaudited) 2018 Six months ended 30 June 2018 (Unaudited) Interest on bank and other borrowings wholly repayable within five years 12,215 12,948 Interest on convertible bonds 25,164 22,985 37,379 35,933 5. 5. PROFIT BEFORE INCOME TAX 2019 Six months ended 30 June 2019 (Unaudited) 2018 Six months ended 30 June 2018 (Unaudited) The Group s profit before income tax has been arrived at after charging/(crediting): Depreciation 37,042 34,947 Amortisation of intangible assets 2,332 5,960 Amortisation of mining rights 94 352 Amortisation of prepaid land lease payments 466 525 Bank interest income (870) (609) 2019 15

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 6. 6. INCOME TAX EXPENSES 2019 Six months ended 30 June 2019 (Unaudited) 2018 Six months ended 30 June 2018 (Unaudited) The Group: PRC Enterprise Income Tax 33,518 30,580 7. 2019 6 30 2018 6 30 8. 116,295,000 2018 105,050,000 6,574,390,058 2018 6,574,390,058 2019 2018 6 30 2018 6 30 7. DIVIDEND The Board does not recommend any payment of interim dividend to shareholders for the six months ended 30 June 2019 (30 June 2018: Nil). 8. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY The calculation of the basic earnings per share amount is based on the profit for the period from continuing operations attributable to ordinary equity holders of the Company of HK$116,295,000 (2018 : HK$105,050,000) and the weighted average number of ordinary shares of 6,574,390,058 (2018: 6,574,390,058) during the period. Diluted earnings per share for the six months ended 30 June 2019 and 30 June 2018 was the same as the basic earnings per share as the convertible bonds and share options outstanding had anti-dilutive effects on the basic earnings per share. 16 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 9. 2019 41,820,000 2018 6 30134,097,000 10. 9. PROPERTY, PLANT AND EQUIPMENT During the six months ended 30 June 2019, the Group had acquired property, plant and equipment amounted to HK$41,820,000 (30 June 2018: HK$134,097,000). 10. TRADE AND BILLS RECEIVABLES 2019 30 June 2019 (Unaudited) 2018 12 31 31 December 2018 (Audited) Trade receivables 169,336 214,717 Provision for impairment (3,544) (3,544) 165,792 211,173 Bill receivables 6,807 165,792 217,980 180 The Group allows an credit period of not more than 180 days to its trade customers. The following is an aged analysis of trade receivables, based on invoice date: 2019 30 June 2019 (Unaudited) 2018 12 31 31 December 2018 (Audited) 0 60 0 60 days 117,287 130,699 61 90 61 90 days 39,555 37,550 90 Over 90 days 8,950 42,924 165,792 211,173 2019 17

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 11. 11. TRADE PAYABLES The following is an aged analysis of trade payables, based on invoice date: 2019 30 June 2019 (Unaudited) 2018 12 31 31 December 2018 (Audited) 0 60 0 60 days 15,059 30,667 61 90 61 90 days 5,113 2,122 90 Over 90 days 28,834 9,060 49,006 41,849 12. 12. BORROWINGS 2019 2018 12 31 30 June 2019 31 December 2018 Note (Unaudited) (Audited) Bank borrowings 166,398 110,500 Other borrowings (ii)&(iii) 244,689 266,127 411,087 376,627 Borrowings: Within one year or on demand 135,486 65,706 More than one year but not exceeding five years 275,601 310,921 411,087 376,627 Less: Amounts shown under current liabilities (135,486) (65,706) Amounts shown under non-current liabilities 275,601 310,921 Borrowings: Secured (i)&(ii) 218,377 216,480 Unsecured 192,710 160,147 411,087 376,627 18 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 12. 12. BORROWINGS (continued) Notes: (i) 133,526,000 2018 12 31110,500,000 133,210,000 2018 12 31 132,469,000 (i) Secured borrowing of approximately HK$133,526,000 (31 December 2018: HK$110,500,000) were guaranteed by the corporate guarantee and pledged building and property, plant and equipment and prepaid land lease payments of approximately HK$133,210,000 (31 December 2018: HK$132,469,000). (ii) 2014 5 30 25,000,000 2015 12 7 25,000,00027,000,000 (ii) Pursuant to a loan agreement entered into by a wholly- owned subsidiary of the Company and International Finance Corporation ( IFC ) on 30 May 2014, IFC had granted a loan of US$25,000,000 to the subsidiary. The agreement was amended and restated on 7 December 2015 with increase in the loan granted from US$25,000,000 to US$27,000,000. 3.5% The loan bears interest at LIBOR plus 3.5% per annum and the amounts due are based on the scheduled repayment dates set out in the loan agreement. 84,851,000 2018 12 31105,980,000 (i) (ii)alpha Sino International Limited Alpha Sino (iii) 9,748,000 2018 12 31 24,732,000 The loan granted by IFC of approximately HK$84,851,000 (31 December 2018: HK$105,980,000) was secured by (i) corporate guarantee given by Century Sunshine Group Holdings Limited; and (ii) pledged of shares in Century Sunshine Group Holdings Limited as owned by Alpha Sino International Limited ( Alpha Sino ), the substantial shareholder; (iii) deposit with banks of approximately HK$9,748,000 (31 December 2018: HK$24,732,000) (iii) 2019 20,504,000 159,838,000 7% 2020 8 11 7.05% (iii) As at 30 June 2019, the Company has issued bond with the outstanding amount of US$20,504,000 (equivalent to HK$159,838,000) for cash. The bond bear an interest of 7% per annum payable in arrear semi-annually. The maturity date of the bond is 11 August 2020 unless early redeemed. The effective interest rate of the bond is 7.05% per annum. 2019 19

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 13. 2017 11 30 Sure Sino Global Limited Sure Sino 4% 420,000,000 14% 0.40 2017 10 26 13. CONVERTIBLE BOND On 30 November 2017, as part of consideration for the acquisition of the Fullocean Group, the Company has issued convertible bonds which bear an interest of 4% per annum payable in arrear semi-annually with aggregate principal amount of HK$420,000,000 pursuant to the sale and purchase agreement entered into by Capital Idea Investments Limited ( CIIL ), Sure Sino Global Limited ( Sure Sino ), Century Sunshine Group Holdings Limited and the Company. According to the Group s accounting policy, the convertible bonds are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company s own equity instruments is an equity instrument. The fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. The fair value assessment of the convertible bonds was performed by an independent professional valuer. The equity element is presented in equity under the heading of convertible bond equity reserve. The effective interest rate of the liability element on initial recognition is 14% per annum. The convertible bonds entitle the bondholder to convert to shares at a conversion price of HK$0.40. The maturity date of the Convertible Bonds is the 3 year from the date of issue. Conversion may occur at any time before maturity date of the Convertible Bonds. The Company will redeem the convertible bonds if the bonds have not been converted on maturity date. For more details of the terms of convertible bonds, please refer to the circular dated on 26 October 2017. 20 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 13. 13. CONVERTIBLE BOND (continued) The liability component of convertible bond recognised in the statement of consolidated financial position was calculated as follow: 2017 12 31 As at 31 December 2017 and 2018 1 1 1 Janaury 2018 318,684 Effective interest expenses charged 47,021 Interest expenses paid and payable (15,369) 2018 12 31 As at 31 December 2018 and 2019 1 1 1 Janaury 2019 350,336 Effective interest expenses charged 25,163 Interest expenses paid and payable (8,400) 2019 As 30 June 2019 367,099 14. 15. 14. AMOUNTS DUE TO SHAREHOLDERS The amounts due to shareholders are unsecured, non-interestbearing and have no fixed terms of repayment. 15. COMMITMENTS 2019 2018 12 31 30 June 2019 31 December 2018 (Unaudited) (Audited) Contracted, but not provided for: Property, plant and equipment 16,876 18,629 2019 21

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 16. 2019 95,000 2018 6 3095,000 17. 2018 6 2018 7 16. RELATED PARTY TRANSACTION During the six months ended 30 June 2019, the compensation to key management amounts to HK$95,000 (30 June 2018: HK$95,000) representing director s remuneration. 17. DISCONTINUED OPERATION At the end of June 2018, the board of the Company decided to disposal the electronic product business due to its weak profitability. The disposal was completed at the end of July 2018. The loss for the period from discontinued operations is set out below. The comparative figures in the consolidated statement of profit or loss have been restated to represent the electronic product business as a discontinued operation. 22 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 17. 17. DISCONTINUED OPERATION (continued) Analysis of the results of the discontinued operations are set out below: 2018 Six months ended 30 June 2018 (Unaudited) Revenue 158,723 Cost of sales (131,892) Gross profit 26,831 Other gains or losses, net 7,927 Selling and distribution costs (10,028) Administrative expenses (17,848) Research and development expenses (8,087) Share of profits and losses of joint ventures 310 Finance costs (339) Loss before income tax (1,234) Income tax expenses Loss for the period (1,234) Other comprehensive expenses Other comprehensive expenses to be reclassified to profit or loss in subsequent periods: Exchange differences on transaction of foreign operations (1,032) Total comprehensive expenses for the period (2,266) Loss for the period attributable to: Owners of the Company (1,193) Non-controlling interest (41) (1,234) Total comprehensive expenses for the period attributable to : Owners of the Company (2,326) Non-controlling interest 60 (2,266) Loss per share: From discontinued operation Basic and diluted (HK cents) (0.018) 2019 23

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 17. 17. DISCONTINUED OPERATION (continued) Loss before taxation from discontinued operations is arrived at after charging the following: 2018 Six months ended 30 June 2018 (Unaudited) Wages and salaries 41,514 Payment to defined contribution retirement plans 2,704 Total staff costs 44,218 Depreciation and amortisation 3,214 Cost of inventories recognized as an expense 151,206 Provision for inventories 5,740 Product warranty provision 185 Research and development expenses: Current period expenditure 8,087 Analysis of the cash flow of discontinued operations is as follows: 2018 Six months ended 30 June 2018 (Unaudited) Net cash generated from operating activities 5,658 Net cash used in investing activities (984) Net cash used in financing activities (6,278) Net cash outflow (1,604) 24 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2019 6 30 For the six months ended 30 June 2019 17. 17. DISCONTINUED OPERATION (continued) The calculations of basic and diluted earnings per share from the discontinued operation are based on: 2018 Six months ended 30 June 2018 (Unaudited) 8 8 Loss attributable to ordinary equity holders of the parent from the discontinued operation (1,193) Weighted average number of ordinary shares in issue during the period in the basic earnings per share calculation (Note 8) 6,574,390,058 Weighted average number of ordinary shares used in the diluted earnings per share calculation (Note 8) 6,574,390,058 2019 25

MANAGEMENT DISCUSSION AND ANALYSIS 2019 726,229,000 2018795,638,000 8.7% 28.4% 25.4% 3% 2018 31,933 28,395 116,295,000 2018103,816,000 12% 201825,694,000 37% 201916,159,000 10 BUSINESS REVIEW Rare Earth Magnesium Technology Group Holdings Limited ( REMT or the Company, and together with its subsidiaries, the Group ) is a high and new technology enterprise and industry leader with superior production process and patent in technology that engages in the research and development (R&D), production and sales of rare earth magnesium alloys new materials. The Group focuses on the application of rare earth technology and product innovations by adopting product differentiation competitive strategy. With professional R&D team and robust technical know-how, the Group will concentrate on its development goal of rare earth new material technology and products innovation, which would continue to contribute profits to the Group. For the six months ended 30 June 2019 (the period under review ), the Group's overall revenue amounted to HK$726,229,000, representing a decrease of approximately 8.7% compared with HK$795,638,000 for the same period in 2018. During the period under review, the proportion of production and sales volume of rare earth magnesium alloys was increased by one percentage point compared with the same period last year, which resulted an increase in the overall gross profit margin. The overall gross profit margin of the magnesium business was 28.4%, representing an increase of approximately 3% compared with 25.4% for the same period last year. The decrease in sales revenue and increase in gross profit margin were mainly due to the adjustment and optimisation of the product structure, and the reduction in production and sales volume of low-margin products resulting in a decrease in total sales volume from 31,933 tons in 2018 to 28,395 tons in the period under review. Profit after tax was HK$116,295,000 (2018: HK$103,816,000), representing a period-on-period increase of 12%. Besides the improvement in the overall gross profit of the Group, the increase in gross profit after tax was also attributable to the consolidated management of the Group and the strengthened and streamlined management structure of the Group after the disposal of electronic business in the second half of 2018, which enhances the management efficiency, leading to a decrease in the administrative expenses by 37% from HK$25,694,000 in 2018 to HK$16,159,000 in 2019. In addition, our Xinjiang production base was recognised as a High and New Technology Enterprise by the PRC Government in October 2018, the Group benefits from the tax concessions brought about by the Government s preferential policy, thus reducing the tax expenditure and generating more profits for the Group. 26 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 36% 58% PROFESSIONAL R&D TEAM SPECIALISING ON RARE EARTH TECHNOLOGY APPLICATION As an important alloying or micro-alloying element, rare earth plays an important role in metallurgy and material fields, such as purifying alloy melt, refining alloy structure, improving alloy mechanical properties and corrosion resistance and so on; in fact, rare earth is widely applied in steel and nonferrous alloys. The Group has an expert level R&D team that provides robust scientific research and technical support for the product innovation. By using patented technology and by adding appropriate amount of rare earth elements to the original magnesium alloy, properties such as tensile strength, ductile strength and elongation of the original alloy are significantly enhanced, which are far better in quality than ordinary magnesium alloy. The excellent purification and strengthening effects of rare earth are continuously being recognised and mastered; by adding the appropriate rare earth elements, magnesium alloys would result in its greater tensile strength, better heat and corrosion resistance, thus greatly expanding its application. EXCELLENT PERFORMANCE OF COMPETITIVE STRATEGY OF PRODUCT DIFFERENTIATION The PRC Government highly values and encourages the application of rare earth technology and emphasises on strengthening the utilisation of rare earth resources, extending the industrial chain and increasing the added value of rare earth. National policies also continue to favour the Group s business development. The Group makes full use of its production method and patented technology from intermediate alloy to applied alloy, focusing on the R&D of high-end rare earth magnesium alloy products. The Group also achieved significant results by adopting the competitive strategy of product differentiation. Currently, the Group s main products are basic magnesium products and rare earth magnesium alloy products. The rare earth magnesium alloy products accounted for approximately 36% of its production and sales volume and approximately 58% of its revenue. As an advantageous product of our Group, we will continue to steadily increase the proportion of production and sales of rare earth magnesium alloy products and to take advantages of its superior technological edge in the industry so as to provide sustainable development of the Group s new materials of magnesium alloy. 2019 27

MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 2018 70% 10% 6% 8% PROMINENT RESOURCE ADVANTAGES IN OUR PRODUCTION BASE The Xinjiang production base of the Group is located in Hami City, the eastern front of Xinjiang. It is a strategic centre of the PRC's One Belt, One Road ; it was also a key stronghold of the Silk Road in ancient times. Hami has abundant resources, with its high-quality and low-priced coal and dolomite mineral resources providing favourable conditions and momentum to the Group for further developing its magnesium business. Our Xinjiang production base has been recognised as a High and New Technology Enterprise in 2018 by PRC s National High and New Technology Enterprise Recognition and Management Leading Group. Xinjiang production base has adopted the new vertical retorts magnesium production smelting technology, which is currently the most advanced technology in the magnesium industry, realising the mechanisation, automation and humanised production of the magnesium smelting, thus promoting the upgrade of magnesium industry technologies. PROSPECT Research indicates that about 70% of the fuel used in an empty vehicle is consumed by its own weight. Fuel efficiency can increase by 6%-8% when the vehicle s weight is reduced by 10%. The lightweighting trend in transportation represented by automobiles is the future direction, and also drives the demand growth in the magnesium alloy market. The Group will continue to invest R&D and increase technology development intensity to further perfect the series products of magnesium alloy, so as to satisfy the market demand for wider application of magnesium alloys. Looking ahead, the Group will fully grasp the developmental opportunities of rare earth magnesium alloy products and make full use of the resources and geographic advantages in Hami. We shall accelerate the pace of project construction and industrial optimisation, and advance the subsequent production capacity of magnesium alloys and the construction of auxiliary ferrosilicon projects, hence forming a circular economic development model of comprehensive utilisation of semi-coke, ferro-silicon and magnesium products production. Meanwhile, the Group will continue to optimise its product structure, increase the proportion of production and sales of high-margin and high-performance rare earth magnesium alloys, implement the competitive strategy of product differentiation continuously, and assemble the new driving force of enterprise development, which leads to a new era for the high and new technology development in magnesium industry. 28 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 726,229,000 2018795,638,000 8.7% 11.1% 28,395 201831,933 206,318,000 2018202,665,000 1.8% 28.4% 201825.4% 3%2018 24,862 25,576 16,159,000 9,535,000 2018 37,379,000 1,446,000 2018 35,933,000 2017 11 201822,985,0002019 25,164,000 FINANCIAL REVIEW Revenue and Gross profit Revenue of the Group for the period under review was approximately HK$726,229,000 (2018: HK$795,638,000), representing a period-on-period decrease of 8.7%, which is mainly due to the decrease in sale volumes of the magnesium products by approximately 11.1% to 28,395 tonnes (2018: 31,933 tonnes) during the period under review. The decrease are mainly attributable to the adjustment and optimisation of product structure to reduce the production and sales volume of low-margin products. Gross profit for the period under review was approximately HK$206,318,000 (2018: HK$202,665,000), representing a periodon-period increase of 1.8%. The gross profit margin of magnesium alloy products was approximately 28.4% for the period under review (2018: 25.4%), representing a period-on-period increase of 3%. The average selling price of magnesium products increased from HK$24,862 per ton in 2018 to HK$25,576 per ton in the period under review. Administrative expenses The administrative expense for the period under review was approximately HK$16,159,000, representing a period-on-period decrease of approximately HK$9,535,000. Administrative expenses were mainly comprised of expenses such as staff remuneration, depreciation and amortisation, audit and professional fees and leases. The decrease in administrative expense was mainly due to the enhancement of cost management for the period under review. Moreover, after the disposal of electronic business in the second half of 2018, the management structure was streamlined and resulted in improved management efficiency. Finance cost Finance cost was approximately HK$37,379,000, representing a period-on-period growth of approximately HK$1,446,000 (2018: approximately HK$35,933,000). The growth is mainly contributed by the increase in effective interests from HK$22,985,000 in 2018 to HK$25,164,000 in 2019, deriving from the amortisation of convertible bonds issued to Century Sunshine Group Holdings Limited (the intermediate holding company of the Group), in November 2017. The issuance of convertible bonds is a part of the consideration to acquire the Fullocean Group. 2019 29

MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 2019 116,295,000 2018103,816,000 12,479,000 12.0% 12,438,000 12.0% 2019 116,295,000 2018 103,857,000 227,126,000 2018213,347,000 6.5% 2019 6 30 133,674,000 2018 12 31 156,008,000 2019 6 30 778,186,000 2018 12 31726,963,000 2019 6 30 31% 37,379,000 4.1 FINANCIAL REVIEW (continued) Net profit and EBITDA For the six months ended 30 June 2019, the profit after tax of the Group was approximately HK$116,295,000 (2018: HK$103,816,000), representing a period-on-period growth of approximately HK$12,479,000 or 12.0%. The growth is mainly contributed by the combined effect of the increase in operation profits deriving from magnesium products business and the decrease in administrative expenses in the current period. The profit attributable to the equity holders of the Group has increased by HK$12,438,000 or 12.0% to HK$116,295,000 for the six months ended 30 June 2019 (2018: HK$103,857,000). The EBITDA of the Group was approximately HK$227,126,000 (2018: HK$213,347,000), representing a period-onperiod increase of 6.5%. LIQUIDITY AND FINANCIAL RESOURCES On 30 June 2019, the cash and cash equivalent and pledged bank deposits of the Group were approximately HK$133,674,000 (31 December 2018: HK$156,008,000). The Group s borrowings as at 30 June 2019 was HK$778,186,000 (31 December 2018: HK$726,963,000). The Group s borrowings were denominated in Hong Kong dollars, US dollars and Renminbi with floating or fixed interest rates. As at 30 June 2019, the gearing ratio of the Group, defined as borrowings divided by total assets, was 31%. The interest expenses were approximately HK$37,379,000 during the Review Period, and the interest coverage multiple of the Group was approximately 4.1 times. The Group s existing cash resources, together with the steady cash flows generated from business activities, are sufficient to meet its business needs. 30 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 2019 6 30 2018 12 31 2019 6 30 2019 6 30 56,906 2018 12 31 2019 6 30 2019 6 30 4,292,000 CONTINGENT LIABILITIES As at 30 June 2019 and 31 December 2018, the Group has no contingent liabilities. PROJECT OVERVIEW Dolomite mine The Group s dolomite mine is situated in Baishan City, Jilin Province, the PRC. The mine is operated with open-pit method, and therefore no additional exploration works are involved or required. Only simple infrastructure works for open-pit mining are involved in the development activities, and no underground drilling or structural works are involved. The dolomite mined is the raw material for producing magnesium products of the Group. The transportation cost for the raw material is relatively low due to the close proximity of the mine to the production base of the Group. The dolomite mine of the Group was classified by the PRC resource/ reserve volumes. As at 30 June 2019, the estimated resource and reserve volumes were determined based on the yearly reduction of mined quantity to calculate the remaining resource and reserve volumes. There is no material change in the assumptions of estimation by the Group as compared with those previously disclosed. The resource and reserve volumes were reviewed by the Group s internal geological experts. For the six months ended 30 June 2019, the dolomite output was 56,906 tons. As compared with 31 December 2018, there is no material change in the resource and ore reserve volumes of the dolomite mine. For the six months ended 30 June 2019, the expenditures of mining activities were mainly for direct wages, materials, energy, transportation, depreciation and amortisation, etc. Such expenditures have been included in cost of sales and charged to the unaudited condensed consolidated statement of profit or loss and other comprehensive income. The expenditure incurred in mining activities in the dolomite mine for the six months ended 30 June 2019 were approximately HK$4,292,000 while the expenditure of exploration and development activities was HK$Nil. 2019 31

MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 2019 6 30737 2018 6 301,472 FOREIGN CURRENCIES AND TREASURY POLICY Most of the Group s business transactions, assets and liabilities are denominated in Hong Kong dollars, US dollars or Renminbi. The usual treasury policy of the Group is to manage significant foreign currency exposure in a cautious manner and minimize foreign currency risk whenever it may have material impact to the Group. During the last six months, the Group did not engage in any interest rate or foreign currencies speculations. EMPLOYEES RELATIONS As at 30 June 2019, the Group has 737 employees (30 June 2018: 1,472). In addition to salary remuneration, the Group also provides other fringe benefits such as annual leave, medical insurance and provident fund, etc. to its staff. APPRECIATION On behalf of the Board, I wish to thank all our shareholders, customers, suppliers and bankers for their continual support. I would also like to extend my appreciation to all the staff for their dedicated work and their contribution throughout the Review Period. 32 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

OTHER INFORMATION 2017 12 4 10 8.5 2027 12 4 2019 6 30 261,400,000 SHARE OPTION SCHEME In order to attract and retain the best quality employees for the development of the Group s businesses and to provide additional incentives or rewards to selected qualifying participants, the Company adopted a share option scheme on 4 December 2017 (the Scheme ). The qualifying participants mainly include employees and directors of the Group and any substantial shareholders, and the consultants or advisers, distributors, contractors, suppliers, service providers, agents, customers and business partner of the Group who have made contribution to the Group. The Scheme, unless otherwise cancelled or amended, will remain in force for 10 years since its establishing date. The remaining life of the Scheme is approximately 8.5 years (expiry on 4 December 2027). As at 30 June 2019, options to subscribe for a total of 261,400,000 Shares were outstanding under the Scheme (the Options ). 2019 1 1 Held at 1 January 2019 Options granted during the period Options exercised during the period Options lapsed during the period 2019 Held at 30 June 2019 Exercise price HK$ (A) (B) Employees 146,400,000 146,400,000 0.4 40,000,000 40,000,000 0.5 Directors 30,000,000 30,000,000 0.4 Shum Sai Chit 20,000,000 20,000,000 0.4 Chi Bi Fen 5,000,000 5,000,000 0.4 Meng Jian 5,000,000 5,000,000 0.4 Tam Wai Ho 5,000,000 5,000,000 0.4 Kwong Ping Man 5,000,000 5,000,000 0.4 Cheung Sound Poon 5,000,000 5,000,000 0.4 Kwan Ngai Kit Sub-total 221,400,000 221,400,000 0.4 Sub-total 40,000,000 40,000,000 0.5 Total 261,400,000 261,400,000 2019 33

OTHER INFORMATION (CONTINUED) SHARE OPTION SCHEME (continued) The above share options outstanding at the end of the reporting period have the following expiry date, exercise period and exercise prices. Grant date Expiry date Exercise period Exercise prices per Share Number of Share options HK$ 2018 4 25 2023 12 29 2018 11 1 2023 12 29 25 April 2018 29 December 2023 From 1 November 2018 to 29 December 2023 2018 4 25 2020 12 31 2019 1 1 2020 12 31 25 April 2018 31 December 2020 From 1 January 2019 to 31 December 2020 0.4 221,400,000 0.5 40,000,000 261,400,000 2019 918,839,005 14% 8.52027 12 4 As at the date of the 2019 Interim Report, the total number of Shares of the Company available for issue under the Scheme (including the above share options outstanding not yet exercised) was 918,839,005, representing approximately 14% of the issued share capital of the Company as of the date thereof. The remaining life of the Scheme is approximately 8.5 years and to be expired on 4 December 2027. 34 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

OTHER INFORMATION (CONTINUED) 2019 6 30 352 10 XV DIRECTORS INTERESTS IN SECURITIES At 30 June 2019, the interests of the directors of the Company (the Directors ) and their associates in the shares and underlying shares of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (the SFO )), as recorded in the register maintained by the Company under Section 352 of the SFO or as otherwise notified to the Company and The Stock Exchange of Hong Kong Limited pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the Model Code ) set out in Appendix 10 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the Listing Rules ), were as follows: Interests in the Shares, underlying shares and debenture of the Company Number of ordinary shares interested or deemed to be interested Personal Family Corporate Number of Approximate percentage of interests in the issued share capital of the Director interests interests interests Total options held Company Long position 30,000,000 0.46% Shum Sai Chit 3,000,000 0.05% Chi Jing Chao 5,000,000 0.08% Meng Jian Tam Wai Ho, Samson JP ( Dr. Tam ) 63,464,000 4,600,000 75,754,236 143,818,236 5,000,000 2.26% (1) (Note 1) (2) (Note 2) (3) (Note 3) 5,000,000 0.08% Kwong Ping Man 5,000,000 0.08% Cheung Sound Poon 5,000,000 0.08% Kwan Ngai Kit Short position Nil 2019 35

OTHER INFORMATION (CONTINUED) (1) 51,464,000 12,000,000 (2) XV (3) 75,754,236 Earnmill Holdings Limited Earnmill Holdings DIRECTORS INTERESTS IN SECURITIES (continued) Interests in the Shares, underlying shares and debenture of the Company (continued) Notes: (1) Such Shares include the 51,464,000 Shares which are jointly owned by Dr. Tam and Mr. Tam Wai Tong, Thomas ( Mr. Tam ). Dr. Tam directly owns 12,000,000 Shares. (2) Mrs. Tam Mui Ka Wai is the spouse of Dr. Tam and therefore Dr. Tam is deemed to be interested in the Shares owned by Mrs. Tam pursuant to Part XV of the SFO. (3) Of these shares, 75,754,236 Shares are beneficially owned by Earnmill Holdings Limited ( Earnmill Holdings ), a company which is ultimately wholly owned by Dr. Tam and Mr. Tam, in equal shares. Interests in the shares of associated corporations Number of ordinary shares interested or deemed to be interested (long position) Director Name of associated corporation Personal interests Family interests Corporate interests Total Approximate percentage of interests in the issued share capital of the associated corporation Shum Sai Chit Century Sunshine Group Holdings Limited ( Century Sunshine ) 14,666,305 (1) (Note 1) 14,666,305 0.32% 1,633,998 1,633,998 0.045% Chi Jing Chao Century Sunshine ( 2) (Note 2) 2,560,010 2,560,010 0.04% Kwan Ngai Kit Century Sunshine ( 3) (Note 3) 36 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019

OTHER INFORMATION (CONTINUED) (1) 14,666,305 (2) 1,633,998 (3) 2,560,010 2019 6 30 DIRECTORS INTERESTS IN SECURITIES (continued) Interests in the shares of associated corporations (continued) Notes: (1) 14,666,305 shares in Century Sunshine are directly owned by Mr. Shum Sai Chit. (2) 1,633,998 shares in Century Sunshine are directly owned by Ms. Chi Bi Fen. (3) Such shares include the 2,560,010 shares in Century Sunshine owned by Mr. Kwan s spouse. Save as disclosed above, at 30 June 2019, none of the Directors or their associates had any interests or short positions in the shares and underlying shares of the Company or any of its associated corporations as defined in the SFO. 2019 37

OTHER INFORMATION (CONTINUED) 2019 336 SUBSTANTIAL SHAREHOLDERS At 30 June 2019, the register of substantial shareholders kept by the Company pursuant to Section 336 of the SFO shows that other than the interests disclosed above in respect of certain Directors, the following shareholder had notified the Company of relevant interest and short position in the issued capital of the Company: Name of Shareholder Number of ordinary shares held (long position) % of issued share capital Ming Xin Developments Limited ( 1) (note 1) 4,761,117,434 72.42 New Bright Group Limited ( 2) (note 2) 4,761,117,434 72.42 ( 3) 4,761,117,434 72.42 Century Sunshine (note 3) ( 4) 4,761,117,434 72.42 Chi Wen Fu (note 4) (1) 4,761,117,434 Ming Xin Developments Limited (2) Ming Xin Developments Limited New Bright Group Limited New Bright Group Limited Ming Xin Developments Limited (3) New Bright Group Limited Ming Xin Developments Limited (4) Ming Xin Developments Limited Ming Xin Developments Limited 2019 6 30 Note: (1) 4,761,117,434 shares are beneficially owned by Ming Xin Developments Limited; (2) Ming Xin Developments Limited is a wholly-owned subsidiary of New Bright Group Limited. As such, New Bright Group Limited is deemed to be interested in all the shares in which Ming Xin Developments Limited is interested by virtue of the SFO. (3) New Bright Group Limited is a wholly-owned subsidiary of Century Sunshine. As such, Century Sunshine is deemed to be interested in all the shares in which Ming Xin Developments Limited is interested by virtue of the SFO (4) Mr. Chi Wen Fu controls more than one-third or more of the voting power at general meetings of Century Sunshine (the ultimate holding company of Ming Xin Developments Limited). As such, Mr. Chi Wen Fu is deemed to be interested in all the shares in which Ming Xin Developments Limited is interested by virtue of the SFO. Save as disclosed above, at 30 June 2019, the Company had not been notified by any persons who had interests or short positions in the shares or underlying shares of the Company which would fall to be disclosed to the Company under the SFO. 38 Rare Earth Magnesium Technology Group Holdings Limited Interim Report 2019