Nature Home Profit for FY2017 Surges by 28 times to RMB53.46 million

Considerable Rise of 80.8% in Basic Earnings per Share

Sales Volumes of Flooring Products Reached Record High of 35 million sq. m.

HONG KONG, CHINA - Media OutReach - 29 March 2018 - Nature Home Holding Company Limited ("Nature Home" or the "Company", together with its subsidiaries, the "Group"; HKEx Stock Code: 2083), announced its audited annual results for year ended 31 December 2017 (the "Year").

Benefiting from the steady growth of the overall economy and the real estate market in the People's Republic of China (''PRC''), the Group achieved encouraging growth in overall sales. The Group's overall turnover increased by 10.1% to RMB2.55 billion when compared to last year, which was mainly attributable to the net effect of (i) the increase in revenue from flooring products in the PRC; and (ii) the decrease in revenue from trading of timber resulted from a one-off clearance sale of inventories in Peru in 2016. Profit for the Year surged significantly by 28.3 times to RMB53.47 million from RMB1.82 million in 2016. The EBITDA and the profit attributable to shareholders were 64.1% and 78.1% respectively higher than those in 2016.

Due to the continuous growth in the sales of home decoration products of the Group in the PRC, manufacturing and sale of home decoration products, the Group's core business, recorded an increase in sales amounts of 21.8% to approximately RMB2.03 billion. Among which, total sales volumes of flooring products consecutively reached a record high of approximately 35,000,000 square meters, representing an increase of 15.2% as compared to last year, boosting revenue from flooring products in the PRC (arising from manufacturing and sales of self-manufactured flooring products, fees income from authorised flooring products manufacturers and trading of flooring products) increased by 20.8% from approximately RMB1.52 billion in last year to approximately RMB1.911 billion for the Year.

Mr. Se Hok Pan, Chairman of Nature Home said, "During the Year, we continued to restructure and optimise our sales channels and business, bringing in satisfactory result for flooring products business. In order to meet the needs of wider range of customers, the Group also continued to launch new home decoration products actively during the Year, such as kitchen and bathroom floorings, underfloor heating floorings, and water-based paint wooden doors. Furthermore, we had deepened the business development of wooden doors, wardrobes and cabinets, and established a number of sub-brands to further tap into the home decoration products market."

On 1 Dec 2017, the Group has sold the entire issued share capital of the Nature Flooring (Europe) Company Limited and ceased to be engaged in trading of timbers business. This allows the Group to focus on the business of home decoration products, which mainly comprise of floorings, wooden doors, wardrobes, cabinets and wall paper. As at 31 Dec 2017, the Group has 3,604 flooring stores, 547 stores for wooden doors, 148 wardrobe and cabinet stores and 591 wall paper stores. Meanwhile, it currently owns 5 production plants for flooring products, 2 production plants for wooden door products, 2 production plants for wardrobes and cabinets products, and 1 production plants for wall papers products. To cope with market needs, the Group is now constructing two new plants to produce kitchen and bathroom floorings and laminated floorings, while an existing floor production plant is being transformed into a wooden door production plant.

Looking ahead, Mr. Se added, "We will move on to develop more diversified products that integrate environmental protection and smart home concept based on the household product strategy and provide consumers with environmental-friendly and smart products. Moreover, the Group will continue to strengthen its internal management and integrate its resources with an aim to improve product quality and operational efficiency comprehensively. We anticipate that the proportion of affordable housing and hardbound housing in the real estate market of the PRC will further increase in the future. In addition, benefiting from rising consumer spending in the PRC market, the demand for renovation will increase substantially. Therefore, we consider that the domestic home decoration product market in the PRC will continue to grow rapidly. We will seize this opportunity to increase our market share continuously to maintain our leading position in the flooring market and explore other home decoration product markets to create more values for our shareholders."

About Nature Home Holding Company Limited

Nature Home is one of the largest wood flooring brands in China in terms of market share by sales value of branded wood flooring products. The Group's home decoration products mainly comprised floorings, wooden doors, wardrobes and wall paper.

The Group's flooring products mainly include laminated floorings, engineered floorings and solid flooring. It has established a sound and extensive sales network in China and has become a major Chinese distributor of a number of renowned foreign brands of flooring products. As at 31 December 2017, the Group has 3,604 flooring stores, 547 stores for wooden doors, 148 wardrobe and cabinet stores and 591 wall paper stores. The Group currently has 2 production plants for wooden doors, 2 production plants for wardrobes, 5 production plants for flooring products and 1 production plant for wallpaper.