Highlights

• A wholesale licensed travel agent and a car
  rental services provider based in Macau
• One of the two companies in Macau which is able
  to 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 Track
  Record Period
• Granted three out of 40 permits by the
  Transport Bureau of Macau, each of which allows one vehicle for crossing the Hong
  Kong -- Zhuhai -- Macao Bridge (HZMB), and
• Plans to commence its point-to-point
  cross-border transportation services between Macau and Hong Kong in the fourth
  quarter of 2019

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Financial Highlights

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HONG
KONG, CHINA -�Media
OutReach�-�12
September 2019
- Ying Hai Group Holdings Company
Limited ("Ying Hai Group", together with its subsidiaries, the "Group";
stock code: 8668),
a wholesale licensed travel agent and a car rental services provider based in
Macau, announces the details of its plan to list on the GEM of The Stock
Exchange of Hong Kong Limited ("SEHK")
today.

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A total
of 300,000,000 shares will be offered under the Share Offer, of
which 270,000,000
Shares (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 and
not more than HK$0.24.
The Public Offer will commence at
9:00 a.m. on 13
September 2019 (Friday) and close at 12:00 noon on 18 September 2019 (Wednesday).
The final offer price and allotment results are
expected to be announced on 25
September 2019
(Wednesday). Dealings
in the shares of Ying Hai Group on the GEM of SEHK are expected to commence on 26 September 2019 (Thursday).

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Assuming
an Offer Price of HK$0.22 per Offer Share
(being the midpoint of the Offer Price range), the aggregated net proceeds from
the Share Offer, after deducting related expenses, will be approximately HK$37.0 million. Ying Hai Group intends to use these net proceeds for the following
purposes: 1) approximately 52.9% will be used
for expansion of its car fleet; 2) approximately 16.2% will be used for expansion
of 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) approximately
2.8% will be used as its general working capital.

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Lego
Corporate Finance Limited is the Sole Sponsor. Lego Securities Limited is the sole
bookrunner. Lego Securities Limited and Great Roc Capital Securities Limited
are the joint lead managers.

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Industry Overview

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

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The degree of competition of the travel agent
industry in Macau is relatively high and is fragmented with 227 travel agents
as at 30 June 2019. The
Group recorded revenue (excluding the
revenue generated from the Multi-purpose Car Rental Services) of approximately
HK$117.6 million and HK$160.3 million, accounting for a market share of approximately
1.5% and 1.9% to the total revenue of travel agent industry in Macau for FY2017
and FY2018, respectively.

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Business Overview

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

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For FY2017, FY2018 and 4M2019, the Group sold and
distributed 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 and
distributed approximately 52,000, 63,000 and 19,000 hotel rooms of L'Arc Hotel
Macau.

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

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Competitive Strengths

1)���
Established good
and stable relationships with key suppliers and customers

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

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The Group's stable relationship with its suppliers,
some of which have more than four years of business relationship, enables it to
secure 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 revenue
stream. Such arrangement enables the Group to ensure that some of its hotel
rooms purchased from hotel operators are guaranteed to be sold, and lock up
some of the profits to reduce the risk of having to reduce the room rate
significantly when approaching the check-in dates of unsold rooms.

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2)���
Diversified
products and services range to customers

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

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3)���
Diversified range
of hotel rooms

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

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4)���
Diversified
customer types

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

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5)���
Experienced and
stable management team

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

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BUSINESS STRATEGIES

1)���
Expansion of its
car fleet

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

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2)���
Cooperation with
more hotel operators and other travel agents and corporate customers in Macau

The Group intends to collaborate with more hotel
operators to include mid- and high-tier hotel rooms in order to attract
business travellers and high spending customers, so as to generate a higher
sales volume and higher revenue from its other services, such as car rental
services.

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3)���
Increase its
marketing and expansion of its sales channel

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

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4)���
Improve the
efficiency of its operation

The Group intends to relocate and merge its
existing three offices in Macau into one single office in order to ensure
better and more efficient communication as well as better internal
collaboration.

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5)���
Expansion of its
workforce

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

About the Group

Ying Hai Group is a wholesale
licensed travel agent and a car rental services provider based in Macau
offering to its customers a range of products and services which include hotel
rooms, car rental services and sales and provision of air tickets and other
ancillary travel-related products and services. It was one of the two companies
in Macau which is able to provide both travel agent services and self-drive
rent-a-car services.

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For FY2017, FY2018 and 4M2019, the Group sold and
distributed 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 various
types of customer. During
the Track Record Period, the Group sold and distributed approximately 52,000,
63,000 and 19,000 hotel rooms of L'Arc Hotel Macau.