Highlights

• A wholesale licensed travel agent and a carrental services provider based in Macau
• One of the two companies in Macau which is ableto provide both travel agent services and self-drive rent-a-car services
• Sold and distributed approximately 124,000,151,000 and 52,000 hotel rooms of over 40, 40 and 35 hotels in Macau,respectively, for FY2017, FY2018 and 4M2019
• Sold and distributed approximately 52,000,63,000 and 19,000 hotel rooms of L'Arc Hotel　Macau during the TrackRecord Period
• Granted three out of 40 permits by theTransport Bureau of Macau, each of which allows one vehicle for crossing the HongKong -- Zhuhai -- Macao Bridge (HZMB), and
• Plans to commence its point-to-pointcross-border transportation services between Macau and Hong Kong in the fourthquarter of 2019

Financial Highlights

HONGKONG, CHINA - MediaOutReach - 12September 2019- Ying Hai Group Holdings CompanyLimited ("Ying Hai Group", together with its subsidiaries, the "Group";stock code: 8668),a wholesale licensed travel agent and a car rental services provider based inMacau, announces the details of its plan to list on the GEM of The StockExchange of Hong Kong Limited ("SEHK")today.

A totalof 300,000,000 shares will be offered under the Share Offer, ofwhich 270,000,000Shares (subject to reallocation) or 90%, will be offered by way of Placing;while the remaining 10%, or 30,000,000 Shares (subject to re-allocation) will be offered under the Public Offer. The Offer Price per Offer Share is expected to be not less than HK$0.20 andnot more than HK$0.24.The Public Offer will commence at9:00 a.m. on 13September 2019 (Friday) and close at 12:00 noon on 18 September 2019 (Wednesday).The final offer price and allotment results areexpected to be announced on 25September 2019(Wednesday). Dealingsin the shares of Ying Hai Group on the GEM of SEHK are expected to commence on 26 September 2019 (Thursday).

Assumingan Offer Price of HK$0.22 per Offer Share(being the midpoint of the Offer Price range), the aggregated net proceeds fromthe Share Offer, after deducting related expenses, will be approximately HK$37.0 million. Ying Hai Group intends to use these net proceeds for the followingpurposes: 1) approximately 52.9% will be usedfor expansion of its car fleet; 2) approximately 16.2% will be used for expansionof its business by cooperating with more hotel operators; 3) approximately 17.4%will be used for increasing its marketing and expansion of its sales channel; 4)4.1% will be used for improving the efficiency of its operation; 5)approximately 6.6% will be used for expansion of its workforce; 6) approximately2.8% will be used as its general working capital.

LegoCorporate Finance Limited is the Sole Sponsor. Lego Securities Limited is the solebookrunner. Lego Securities Limited and Great Roc Capital Securities Limitedare the joint lead managers.

Industry Overview

According to the Macau Tourism Industry DevelopmentMaster Plan, for a high visitor growth scenario, the number of tourist arrivalsis expected to grow by approximately 3% to 5% per annum till 2025, thus leadingto an expected growth in demand for travel agent services. From 2018 to 2022,the revenue of travel agents is expected to increase from approximately MOP8,506.2million in 2018 to approximately MOP10,401.0 million in 2022 at a CAGR ofapproximately 5.2%, mainly driven by Macau's government's initiatives and upgradedinfrastructure, including the opening of HZMB.

The degree of competition of the travel agentindustry in Macau is relatively high and is fragmented with 227 travel agentsas at 30 June 2019. TheGroup recorded revenue (excluding therevenue generated from the Multi-purpose Car Rental Services) of approximatelyHK$117.6 million and HK$160.3 million, accounting for a market share of approximately1.5% and 1.9% to the total revenue of travel agent industry in Macau for FY2017and FY2018, respectively.

Business Overview

The Group is a wholesale licensed travel agent anda car rental services provider based in Macau offering to its customers a rangeof products and services which include hotel rooms, car rental services andsales and provision of air tickets and other ancillary travel-related productsand services. As at the Latest Practicable Date, it had four service points inMacau, which included its headquarters, two on-street shops, and one booth atthe Macau Outer Harbour Ferry Terminal.

For FY2017, FY2018 and 4M2019, the Group sold anddistributed approximately 124,000, 151,000 and 52,000 hotel rooms of over 40,40 and 35 hotels in Macau, respectively. During the Track Record Period, the Group sold anddistributed approximately 52,000, 63,000 and 19,000 hotel rooms of L'Arc HotelMacau.

As at 30 June 2019, a total of four companies inMacau obtained the authorisation to provide self-drive rent-a-car services, ofwhich only two (including Ying Hai Group) were providing both travel agent servicesand such car rental services. Ying Hai Group has been granted three out of 40 permits by theTransport Bureau of Macau, each of which allows one vehicle for crossing theHZMB. The Group has been liaising closely with different government authoritiesin Hong Kong in relation to the application for the provision of point-to-pointcross-border transportation services between Macau and Hong Kong. It plans tocommence its point-to-point cross-border transportation services between Macauand Hong Kong in the fourth quarter of 2019.

Competitive Strengths

1)   Established goodand stable relationships with key suppliers and customers

The Group has maintained good businessrelationships with hotel operators in Macau such as L'Arc Hotel Macau and WaldoHotel Macao to secure sources of its hotel rooms so that the Group can maintaina stable supply of hotel rooms and a high degree of control over the quantityand pricing of hotel rooms available.

The Group's stable relationship with its suppliers,some of which have more than four years of business relationship, enables it tosecure supply of hotel rooms on a regular basis at a preferential room rate,and stable relationships with its major customers allow it to secure its revenuestream. Such arrangement enables the Group to ensure that some of its hotelrooms purchased from hotel operators are guaranteed to be sold, and lock upsome of the profits to reduce the risk of having to reduce the room ratesignificantly when approaching the check-in dates of unsold rooms.

2)   Diversifiedproducts and services range to customers

The Group provides one-stop service to itscustomers with wide variety of products and services ranging from air tickets,visa applications, travel insurance, hotel rooms bookings, entertainmenttickets booking, buffet tickets, transportation arrangements includingtransportation tickets and car rental services, etc., which facilitate itscustomers to obtain one-stop service without negotiating with differentparties. As at 30 June 2019, the Group was one of the two companies in Macauwhich were able to provide both travel agent services and self-drive rent-a-carservices.

3)   Diversified rangeof hotel rooms

For FY2017, FY2018 and 4M2019, the Group hasentered into Hotel Rooms Guarantee Agreements with seven, seven and eighthotels in Macau, respectively, pursuant to which it was guaranteed 320, 377 and396 hotel rooms each day on average, respectively. These hotels range fromthree stars to five stars as accredited by the Macao Government Tourism Office ,offering a wide range of choices for its customers.

4)   Diversifiedcustomer types

The Group's customers include corporate customers,travel agents as well as individual customers. The diversified types ofcustomers will in turn reduce the risk of overly relying on one single type ofcustomer.

5)   Experienced andstable management team

The management team is familiar with the market andis able to guide the Group to react to latest market trends and changes throughthe development of effective strategies. They are also capable of solicitingbusiness for the Group through their experience and personal network andconnections.

BUSINESS STRATEGIES

1)   Expansion of itscar fleet

The Group is one of the two companies in Macauwhich are able to provide both travel agent services and self-drive rent-a-carservices as at 30 June 2019. It plans to acquire an additional of 20 vehiclesand to recruit 20 drivers to meet the increasing demand for in-cityMulti-purpose Car Rental Services.

2)   Cooperation withmore hotel operators and other travel agents and corporate customers in Macau

The Group intends to collaborate with more hoteloperators to include mid- and high-tier hotel rooms in order to attractbusiness travellers and high spending customers, so as to generate a highersales volume and higher revenue from its other services, such as car rentalservices.

3)   Increase itsmarketing and expansion of its sales channel

The Group plans to establish more service pointsand develop an online platform in the form of an app to market its travelproducts and services to corporate and individual customers. With theincreasing use of internet for travel booking and in order to correspond with itsplan to develop an online sales platform, the Group intends to invest in digitalmarketing through advertising on social media platforms and search engines witha view to increasing its online channel presence and drive online inquiry.

4)   Improve theefficiency of its operation

The Group intends to relocate and merge itsexisting three offices in Macau into one single office in order to ensurebetter and more efficient communication as well as better internalcollaboration.

5)   Expansion of itsworkforce

In order to cope with the continual expansion of itsbusiness, its Group intends to hire 4 new employees in 2019 and 20 drivers witha view to having sufficient manpower to improve its service quality and brandawareness through advertisements and other marketing campaigns.

About the Group

Ying Hai Group is a wholesalelicensed travel agent and a car rental services provider based in Macauoffering to its customers a range of products and services which include hotelrooms, car rental services and sales and provision of air tickets and otherancillary travel-related products and services. It was one of the two companiesin Macau which is able to provide both travel agent services and self-driverent-a-car services.

For FY2017, FY2018 and 4M2019, the Group sold anddistributed approximately 124,000, 151,000 and 52,000 hotel rooms of over 40,40 and 35 hotels in Macau, respectively, to accommodate the needs of varioustypes of customer. Duringthe Track Record Period, the Group sold and distributed approximately 52,000,63,000 and 19,000 hotel rooms of L'Arc Hotel Macau.