– 1 –

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Daohe Global Group Limited道和環球集團有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 915)

ANNOUNCEMENT OF UNAUDITED INTERIM RESULTSFOR THE SIX MONTHS ENDED 31 OCTOBER 2017

INTERIM RESULTS HIGHLIGHTS:

• Revenue increased by approximately 13% to approximatelyUS$59.4million(equivalent toHK$462.1million) as compared to approximatelyUS$52.5million(equivalenttoHK$408.5million)forthecorrespondingperiodlastyear.Theincreasewasprimarilyattributable toamobile socialnetworkingplatform,anewbusinessacquiredduring theperiodunder review.Thenewbusinesscontributeda revenueofapproximatelyUS$9.7million (equivalent toHK$75.5million), accounted forapproximately16.4%oftheGroup’stotalrevenue.

• Loss for the period under review amounted to approximatelyUS$73.4million(equivalent toHK$571.1million).The loss included thenon-cash impairment lossesongoodwillandamortisationof intangibleassetsofapproximatelyUS$73.1million(equivalent toHK$568.7million)andapproximatelyUS$5.4million (equivalent toHK$42million) respectively.Excluding thenon-cash impairment lossesongoodwilland amortisationof intangible assets, net ofdeferred tax credit of approximatelyUS$1.4million (equivalent toHK$10.9million), theGroup’sprofit for theperiodwouldbeapproximatelyUS$3.7million(equivalenttoHK$28.8million),representingan increaseof approximatelyUS$1.5million (equivalent toHK$11.7million) ascomparedtoaprofitofapproximatelyUS$2.2million(equivalenttoHK$17.1million)forthecorrespondingperiodlastyear.

• TheDirectorshavenotdeclaredthepaymentofaninterimdividendforthesixmonthsended31October2017.

–2–

UNAUDITED INTERIM RESULTS

Theboard(“Board”)ofdirectors(“Directors”)ofDaoheGlobalGroupLimited(“Company”)announces the unaudited condensed consolidated interim financial information of theCompanyand its subsidiaries (together, the“Group”) for thesixmonthsended31October2017,togetherwithrelevantcomparativeauditedorunauditedfigures:

CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

Condensed Consolidated Interim Statement of Profit or Loss

For the six months ended31 October2017 2016

(Unaudited) (Unaudited)Note US$’000 US$’000

(Restated)

REVENUE 2 59,375 52,539Costofsales (44,584) (39,856)

Grossprofit 14,791 12,683Otherincome 422 164Sellingandmarketingexpenses (6,235) –Generalandadministrativeexpenses (10,387) (10,397)Gainondisposalofasubsidiary – 62Impairmentlossesongoodwill 8 (73,098) –

(LOSS)/PROFIT BEFORE TAX 3 (74,507) 2,512Incometaxcredit/(expense) 4 1,071 (298)

(LOSS)/PROFIT FOR THE PERIOD (73,436) 2,214

ATTRIBUTABLE TO: OwnersoftheCompany (73,434) 2,249 Non-controllinginterests (2) (35)

(73,436) 2,214

(LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY (expressedinUScents) 6 Basic(Note) (5.12) 0.21

Diluted(Note) (5.12) 0.21

Note:

AdjustedfortheeffectofsharesubdivisioninAugust2017.

–3–

Condensed Consolidated Interim Statement of Comprehensive Income

For the six months ended31 October2017 2016

(Unaudited) (Unaudited)US$’000 US$’000

(LOSS)/PROFIT FOR THE PERIOD (73,436) 2,214

OTHER COMPREHENSIVE INCOME/(LOSS)

Othercomprehensiveincome/(loss)tobereclassified subsequentlytoprofitorloss: Exchangedifferences: Translationofforeignoperations 4,286 (79) Reclassificationadjustment –Disposalofasubsidiary – (4)

OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD 4,286 (83)

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD (69,150) 2,131

ATTRIBUTABLE TO: OwnersoftheCompany (69,148) 2,164 Non-controllinginterests (2) (33)

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD (69,150) 2,131

–4–

Condensed Consolidated Interim Statement of Financial Position

31 October 30April2017 2017

(Unaudited) (Audited)Note US$’000 US$’000

NON-CURRENT ASSETSProperty,plantandequipment 7 614 269Goodwill 8 66,699 26,373Otherintangibleassets 7 55,900 –Available-for-salefinancialasset 229 229Investmentinajointventure 10 10Depositforacquisitionofsubsidiaries – 2,571Deposits 336 303Deferredtaxassets 13 12

Totalnon-currentassets 123,801 29,767

CURRENT ASSETSInventories 127 52Available-for-salefinancialasset 1,807 –Loanreceivable – 6,000Tradereceivables 9 6,953 5,390Prepayments,depositsandotherreceivables 4,363 3,360Cashandcashequivalents 15,045 14,797

Totalcurrentassets 28,295 29,599

CURRENT LIABILITIESTradepayables 10 6,350 4,659Loanfromadirector 12(b) 3,856 –Accruals,provisionsandotherpayables 10,452 9,786Deferredrevenue 1,219 –Taxpayable 2,580 2,480

Totalcurrentliabilities 24,457 16,925

NET CURRENT ASSETS 3,838 12,674

TOTAL ASSETS LESS CURRENT LIABILITIES 127,639 42,441

NON-CURRENT LIABILITIESDeferredtaxliabilities 13,975 –Post-employmentbenefits 511 553Provisions 1,405 1,228

Totalnon-currentliabilities 15,891 1,781

NET ASSETS 111,748 40,660

EQUITYSharecapital 20,128 14,128Reserves 91,627 26,537

EquityattributabletoownersoftheCompany 111,755 40,665Non-controllinginterests (7) (5)

TOTAL EQUITY 111,748 40,660

–5–

Notes:

1. BASIS OF PREPARATION

ThecondensedconsolidatedinterimfinancialstatementsoftheGroupforthesixmonthsended31October2017havebeenprepared in accordancewithHongKongAccountingStandard (“HKAS”)34 Interim Financial Reporting issuedby theHongKongInstituteofCertifiedPublicAccountants(“HKICPA”)andthedisclosure requirementsof theRulesGoverning theListingofSecurities (“Listing Rules”)onTheStockExchangeofHongKongLimited(“Stock Exchange”).

Thiscondensedconsolidated interimfinancial information ispresented inUnitedStatesdollars (“US$”),unlessotherwisestated.

Thecondensedconsolidatedinterimfinancialstatementsdonotincludealltheinformationanddisclosuresrequired in theannual financial statementsand shouldbe read inconjunctionwith theGroup’sannualfinancialstatementsfortheyearended30April2017.

For the periods up to and including the year ended30April 2017, theGroupprepared its financialstatements inaccordancewith InternationalFinancialReportingStandardswhichcomprisestandardsandinterpretationsapprovedby the InternationalAccountingStandardsBoard.For thesixmonthsended31October 2017, theGroupprepared this interim financial information in accordancewithHongKongFinancialReportingStandards(“HKFRSs”)(whichincludeallHongKongFinancialReportingStandards,HongKongAccountingStandards(“HKASs”)andInterpretations) issuedbytheHKICPAandaccountingprinciplesgenerallyacceptedinHongKongandthedisclosurerequirementsoftheHongKongCompaniesOrdinance.

Accordingly,theGrouphaspreparedthecomparativeperioddataforthesixmonthsended31October2016andasat30April2017 inaccordancewithHKFRSs. Inpreparing the interimfinancial information, theGroup’sdateoftransitiontoHKFRSswas1May2015.ThetransitiontoHKFRSsdidnothaveanyimpactontheaccountingpolicies,andthefinancialpositionoftheGroupasat1May2015and30April2016anditsfinancialperformanceforthesixmonthsended31October2016,sothereconciliationsasrequiredunderHKFRS1“First Time Adoption of Hong Kong Financial Reporting Standards”arenotpresented.Theprincipalaccountingpoliciesadopted in thepreparationof thecondensedconsolidated interimfinancialstatementsoftheGroupforthesixmonthsended31October2017areconsistentwiththosefollowedinthepreparationoftheauditedannualfinancialstatementsoftheGroupfortheyearended30April2017.

2. OPERATING SEGMENT INFORMATION

Formanagementpurposes,theGroupisorganisedintobusinessunitsbasedontheirnatureofbusinessandhasthreereportableoperatingsegmentsasfollows:

(a) tradingandsupplychainmanagementservices(Note);

(b) operationofonlinesocialplatform;and

(c) moneylendingbusiness.

Note:

FollowingtheacquisitionoftheoperationofonlinesocialplatformandthechangeintheinternalstructureoftheGroup,managementoftheGrouphasdecidedtoconsolidatethesegmentsof“Salesofmerchandise”and“Provisionofservices”into“Tradingandsupplychainmanagementservices”consideringthattheyareoperatedunder thesamemanagement team.Thesegment informationforearlierperiodshasbeenrestatedtoconformwiththesechanges.

–6–

Managementmonitors theresultsof theGroup’soperatingsegmentsseparatelyfor thepurposeofmakingdecisionsaboutresourcesallocationandperformanceassessment.Segmentperformanceisevaluatedbasedon reportable segmentprofit/(loss),which isameasureofadjustedprofit/(loss)before tax.Theadjustedprofit/(loss)beforetaxismeasuredconsistentlywiththeGroup’sprofit/(loss)beforetaxexceptthatinterestincome,gainondisposalofasubsidiaryaswellascorporateandotherunallocatedexpensesareexcludedfromsuchmeasurement.

Intersegment salesand transfersare transactedwith reference to thesellingpricesused for salesmade tothirdpartiesatthethenprevailingmarketprices.

The following tablespresent revenueand (loss)/profit for theGroup’s reportable segments for the sixmonthsended31October2017and2016.

For the six months ended 31 October 2017

Trading andsupply chainmanagement

services

Operation ofonline social

platform

Moneylending

business Total(Unaudited) (Unaudited) (Unaudited) (Unaudited)

US$’000 US$’000 US$’000 US$’000

Segment revenue:Revenuefromexternalcustomers 49,554 9,726 95 59,375

Segment results (9,981) (63,012) 40 (72,953)

Interestincome 7Corporateandotherunallocatedexpenses (1,561)

Lossbeforetax (74,507)Incometaxcredit 1,071

Lossfortheperiod (73,436)

Other segment information:Impairmentlossesongoodwill 13,600 59,458 40 73,098Amortisationofintangibleassets – 5,428 – 5,428Depreciation 83 73 – 156Capitalexpenditures 128 259 – 387Impairmentoftradereceivables 79 – – 79

–7–

Forthesixmonthsended 31October2016

Tradingandsupplychainmanagement

services

Moneylendingbusiness Total

(Unaudited) (Unaudited) (Unaudited)US$’000 US$’000 US$’000

Segment revenue:Revenuefromexternalcustomers 52,539 – 52,539

Segment results 3,173 (40) 3,133

Interestincome 4Gainondisposalofasubsidiary 62Corporateandotherunallocatedexpenses (687)

Profitbeforetax 2,512Incometaxexpense (298)

Profitfortheperiod 2,214

Other segment information:Depreciation 149 – 149Capitalexpenditures 92 – 92Impairmentoftradereceivables 116 – 116

3. (LOSS)/PROFIT BEFORE TAX

TheGroup’s(loss)/profitbeforetaxisarrivedataftercharging/(crediting):

For the six months ended31 October2017 2016

(Unaudited) (Unaudited)US$’000 US$’000

Depreciation 156 149Amortisationofintangibleassets 5,428 –Gainondisposalofasubsidiary – (62)Impairmentoftradereceivables 79 116Impairmentlossesongoodwill 73,098 –

–8–

4. INCOME TAX (CREDIT)/EXPENSE

HongKongprofits taxhasbeenprovidedat the rateof16.5%(2016:16.5%)on theestimatedassessableprofitsarisinginHongKongduringtheperiod.TaxesonprofitsassessableoutsideHongKonghavebeencalculatedattheratesoftaxprevailinginthejurisdictionsinwhichtheGroupoperates.

For the six months ended31 October2017 2016

(Unaudited) (Unaudited)US$’000 US$’000

Current –HongKong 204 289 –OutsideHongKong 89 18Netoverprovisioninprioryears (6) (9)Deferred (1,358) –

Totaltax(credit)/expensefortheperiod (1,071) 298

Asofthedateofthisannouncement,theGroupreceivedprotectiveassessmentsamountingtoapproximatelyHK$173,000,000 (equivalent toUS$22,237,000) from the InlandRevenueDepartment inHongKong(“IRD”) in respectofquerieson themodusoperandiof theGroupand thechargeabilityof theprofits fortheyearsofassessmentfrom2003/2004 to2010/2011.Objectionshavebeen lodgedby theGroupagainsttheprotectiveassessments.Inaddition,TaxReserveCertificatesamountingtoHK$5,250,000(equivalenttoUS$675,000)havebeenpurchasedby twosubsidiariesof theCompany inpursuitof theholdoverof taxdemandedunderprotectiveassessmentsfortheseyears.

InApril2015,withtheassistanceofanexternaltaxspecialist,theGroupsubmittedasettlementproposalaspartofnegotiationwiththeIRDinrelationtothiscase.SubsequenttothesubmissiontotheIRD,theGroupkeptclosedialoguewiththeIRDandunderstoodthattheIRDrequiredadditionalevidencefromtheGrouptofurtherassess the taxposition.At thecloseof thereportingperiod, thecasewasstillundernegotiationwith the IRD.Despite theunknownoutcome, theGroup isof theview that sufficient taxprovisionshavebeenmadeinthefinancialstatementsbasedontheinformationavailable.

5. DIVIDENDS

On11January2017,adividendof0.46HKcents (adjusted for theeffectof sharesubdivision inAugust2017)perordinarysharewaspaidtoshareholdersoftheCompanyasinterimdividendinrespectofthesixmonthsended31October2016.

Thedirectorsof theCompanyhavenotdeclared thepaymentofan interimdividend for thesixmonthsended31October2017.

6. (LOSS)/EARNINGS PER SHARE

Thecalculationofbasic lossper share (sixmonthsended31October2016:basicearningsper share) isbasedonthelossfortheperiodattributabletoownersoftheCompanyofapproximatelyUS$73,434,000(sixmonths ended 31October 2016: profit ofUS$2,249,000), and theweighted average number of1,433,777,483 (sixmonths ended 31October 2016: 1,059,592,701 (adjusted for the effect of sharesubdivisioninAugust2017))ordinarysharesinissueduringtheperiod.

TheGrouphadnodilutivepotentialordinaryshares in issue for theperiodsended31October2017and2016.

–9–

7. PROPERTY, PLANT AND EQUIPMENT AND OTHER INTANGIBLE ASSETS

Property,plant and

equipment

Otherintangible

assets TotalUS$’000 US$’000 US$’000

UnauditedAt1May2017,netofaccumulateddepreciation andamortisation 269 – 269Acquisitionofsubsidiaries 111 59,689 59,800Additions 387 – 387Disposals (3) – (3)Depreciationchargedfortheperiod (156) – (156)Amortisationchargedfortheperiod – (5,428) (5,428)Exchangerealignment 6 1,639 1,645

At31October2017,netofaccumulated depreciationandamortisation 614 55,900 56,514

US$’000 US$’000 US$’000

AuditedAt1May2016,netofaccumulateddepreciation 416 – 416Additions 138 – 138Disposals (1) – (1)Depreciationprovidedduringtheyear (282) – (282)Exchangerealignment (2) – (2)

At30April2017,netofaccumulateddepreciation 269 269

8. GOODWILL

TotalUS$’000

UnauditedAt1May2017,netofaccumulatedimpairment 26,373Acquisitionofsubsidiaries 110,297Impairmentchargedfortheperiod (73,098)Exchangerealignment 3,127

At31October2017,netofaccumulatedimpairment 66,699

AuditedAt1May2016,netofaccumulatedimpairment 26,857Acquisitionofasubsidiary 40Disposalofasubsidiary (524)

At30April2017,netofaccumulatedimpairment 26,373

–10–

Impairment testing of goodwill

Goodwillhasbeenallocatedtothefollowingcash-generatingunitsforimpairmenttesting:

• Tradingandsupplychainmanagementservices;

• Operationofonlinesocialplatform;and

• Others

Therecoverableamountofthecash-generatingunithasbeendeterminedbasedonavalueinusecalculationusingcashflowprojectionsbasedonfinancialbudgetsapprovedbyseniormanagement.Thereareanumberofassumptionsandestimatesinvolvedinthepreparationofcashflowprojectionsfortheperiodcoveredbytheapprovedbudget.Keyassumptionsincludetheexpectedgrowthinrevenuesandgrossmargin,timingoffuturecapitalexpenditures, long termgrowth ratesandselectionofdiscount rates.Managementpreparesthe financialbudgets reflectingactualandprioryearperformanceandmarketdevelopmentexpectations.Judgement isrequiredtodeterminethekeyassumptionsadoptedin thecashflowprojectionsandchangestokeyassumptionscansignificantlyaffect thesecash flowprojections.Thediscount ratesapplied to thecashflowprojectionsfortradingandsupplychainmanagementservices,operationofonlinesocialplatformandothersare11%(30April2017:11%),23.69%(30April2017:nil)and10%(30April2017:10%),respectively.Theestimatedgrowth rateused toextrapolate thecash flowsof thecash-generatingunitsbeyondthefive-yearperiodisnomorethan3%.

During theperiodended31October2017, theGroup recognised impairment lossesofUS$13,600,000,US$59,458,000andUS$40,000 inconnectionwithgoodwill allocated to the tradingand supplychainmanagement services,operationofonlinesocialplatformandothers respectively.The impairment lossesaremadebasedontheresultsof impairment testsfor thegoodwillusingtheirvaluesinuseinaccordancewithHKAS36.The impairment lossofUS$59,458,000 inconnectionwith thegoodwillallocated to theoperationofonline socialplatformwasmainly related to the increase in fairvalueof the150,000,000considerationsharesatthecompletiondateoftheacquisitionasdetailedinnote11.

Thecarryingamountofgoodwillallocatedtoeachofthecash-generatingunitsisasfollows:

Trading and supply chainmanagement services

Operation ofonline social platform Others Total

31 October2017

30April2017

31 October2017

30April2017

31 October2017

30April2017

31 October2017

30April2017

(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000

Goodwill 12,733 26,333 53,966 – – 40 66,699 26,373

– 11 –

9. TRADE RECEIVABLES

Thegeneralcredittermsgrantedtocustomersrangefrom30daysto90days.Anagedanalysisofthetradereceivablesasattheendofthereportingperiod,basedontheinvoicedate,isasfollows:

31 October 30April2017 2017

(Unaudited) (Audited)US$’000 US$’000

Within30days 3,805 2,74231to60days 1,255 95361to90days 542 32191to365days 1,547 1,622Over1year 263 132

7,412 5,770Impairment (459) (380)

6,953 5,390

Note:

The trade receivablesagedover90daysarebeingcarefullymonitoredbymanagement.ApproximatelyUS$459,000(30April2017:US$380,000)ofthesebalanceswascoveredbytheimpairment.

10. TRADE PAYABLES

Anagedanalysisofthetradepayablesasattheendofthereportingperiod,basedontheinvoicedate,isasfollows:

31 October 30April2017 2017

(Unaudited) (Audited)US$’000 US$’000

Within30days 5,348 4,02231to60days 735 46861to90days 37 1191to365days 163 97Over1year 67 61

6,350 4,659

11. ACQUISITIONS OF SUBSIDIARIES

On21February2017,awholly-ownedsubsidiaryof theCompany,GlorySinoLimited (“Glory Sino”)enteredintoasharepurchaseagreement(“Agreement”)withindependentthirdpartiestoacquiretheentireissuedsharecapitalofLooveeHoldingsInc.(“Loovee”)ataconsiderationofHK$800,500,000(equivalenttoUS$102,892,000).

Loovee,throughitssubsidiary,isprincipallyengagedinthedevelopmentandoperationofamobilesocialnetworkingplatformnamed“Duimian*”(“對面”).

* For identification purpose only

–12–

PursuanttotheAgreement,theconsiderationwassatisfiedby(i)theallotmentandissueofthe150,000,000sharesoftheCompanyatanissuepriceofHK$4.67perconsiderationshare;and(ii)cashconsiderationofHK$100,000,000 (equivalent toUS$12,853,000. For details of the acquisition, please refer to theannouncements of theCompanydated 21February 2017 and19April 2017, and the circular of theCompanydated28April2017.

Theacquisitionwassubsequentlycompletedon1June2017.Theclosingsharepriceof theCompanyonthecompletiondate increased toHK$7.27and the fairvalueof thepurchaseconsideration forLooveeincreasedtoapproximatelyHK$1,190,500,000(equivalenttoUS$153,020,000)accordingly.

TheGroupincurredtransactioncostsofUS$638,000forthisacquisition.Thesetransactioncostshadbeenexpensedandwereincludedingeneralandadministrativeexpensesintheconsolidatedstatementofprofitorlossfortheyearended30April2017.Noneofthegoodwillrecognisedwasexpectedtobedeductibleforincometaxpurpose.

The fairvaluesof the identifiableassets and liabilitiesofLooveeasat thedateofacquisitionwereasfollows:

(Unaudited)Note US$’000

Property,plantandequipment 111Otherintangibleassets 59,689Tradereceivables 637Prepayments,depositsandotherreceivables 66Cashandcashequivalents 1,308Accruals,provisionsandotherpayables (2,580)Deferredrevenue (1,585)Deferredtaxliabilities (14,923)

Totalidentifiablenetassetsatfairvalue 42,723

Fairvalueofpurchaseconsideration: Cash 12,853 Considerationshares 140,167

153,020

Goodwill 8 110,297

AnanalysisofthenetcashoutflowsinrespectoftheacquisitionCashconsideration 12,853Less:Depositpaidduringtheyearended30April2017 (2,571)Less:Cashandcashequivalentsacquired (1,308)

Netcashoutflowsduringtheperiod 8,974

–13–

12. RELATED PARTY TRANSACTIONS

(a) Inaddition to thebalancesand transactionsdetailedelsewhere, theGrouphadnosignificant relatedpartytransactionsduringthesixmonthsended31October2017and2016.

(b) Loanfromadirector

At31October2017, the loanfromadirector isunsecured,non-interest-bearingandrepayableby20March2018.

(c) CompensationofkeymanagementpersonneloftheGroup:

For the six months ended31 October2017 2016

(Unaudited) (Unaudited)US$’000 US$’000

Shorttermemployeebenefits 512 617Post-employmentbenefits –definedcontributionplans 33 50

Totalcompensationpaidtokeymanagementpersonnel 545 667

–14–

MANAGEMENT DISCUSSION AND ANALYSIS

Business Review

Overview

During the period under review, theGroup acquired a new business, amobile socialnetworkingplatform,based inShenzhen, thePeople’sRepublicofChina (“PRC”).Thenewbusiness contributeda revenueof approximatelyUS$9.7million (equivalent toHK$75.5million)during theperiodunder review, representingapproximately16.4%of theGroup’srevenue.

RegardingtheGroup’s tradingandsupplychainmanagementservices,businessenvironmentremainedchallengingduring theperiodunder review, revenuedecreasedbyapproximately5.7%fromapproximatelyUS$52.5million (equivalent toHK$408.5million) for the sameperiodlastyeartoapproximatelyUS$49.6million(equivalenttoHK$385.9million).

Asa result, theoverallGroup’s revenue increasedbyapproximately13%toapproximatelyUS$59.4million (equivalent toHK$462.1million) fromapproximatelyUS$52.5million(equivalenttoHK$408.5million)forthesameperiodlastyear.

Grossprofit increasedbyaround16.6%fromapproximatelyUS$12.7million (equivalent toHK$98.8million)forthesameperiodlastyeartoapproximatelyUS$14.8million(equivalenttoHK$115.1million).Thegrowthwasmainlyattributable to thenewonlinesocialplatformbusinessgeneratingahighermargin.

Theoveralloperatingcosts increased fromapproximatelyUS$10.4million (equivalent toHK$80.9million)forthesameperiodlastyeartoapproximatelyUS$16.6million(equivalenttoHK$129.1million).Theincreasewasmainlyduetothecostsinrelationtothenewacquiredonline socialplatformbusinessof approximatelyUS$6.7million (equivalent toHK$52.1million).

TheGroup recorded a loss of approximatelyUS$73.4million (equivalent toHK$571.1million) during the period, as comparedwith profit of approximatelyUS$2.2million(equivalenttoHK$17.1million)forthesameperiodlastyear.Thesignificantlosswasmainlydue to the impairment lossesongoodwillofapproximatelyUS$73.1million (equivalent toHK$568.7million)andtheamortisationofintangibleassetsofapproximatelyUS$5.4million(equivalent toHK$42million).Excluding thenon-cash impairment lossesongoodwillandamortisationof intangibleassets,netofdeferred taxcreditofapproximatelyUS$1.4million(equivalent toHK$10.9million), theGroup’sprofit for theperiodwouldbeapproximatelyUS$3.7million(equivalenttoHK$28.8million),anincreaseofapproximatelyUS$1.5million(equivalent toHK$11.7million)ascompared toaprofitofapproximatelyUS$2.2million(equivalenttoHK$17.1million)forthecorrespondingperiodlastyear.

–15–

Segmental Analysis

Operating Segmentation

TheGroup’s business comprises three operating segments: (i) trading and supply chainmanagement services; (ii)operationof anonline socialplatform;and (iii)money lendingbusiness.

(i) Trading and supply chain management services

Revenue for tradingandsupplychainmanagement services reducedbyapproximately5.7%fromapproximatelyUS$52.5million(equivalenttoHK$408.5million)forthesameperiodlastyeartoapproximatelyUS$49.6million(equivalenttoHK$385.9million),butit still accounts forapproximately83.5%of theGroup’s revenue.Thedrop in revenuewasmainlyduetothedeclineintradingbusinessfromafewUScustomers.

(ii) Operation of the online social platform

On1 June2017, theGroup’s acquisitionof theentire issued sharecapitalofLooveewhich is principally engaged in the development and operation of amobile socialnetworking platformnamed “Duimian”, one of the largest gamifiedmobile socialnetworkingplatformsinthePRC.“Duimian”targetsyoungerusergroupswithmostuserscurrentlyinfirst-tiercitiesinthePRC.AfterthecompletionofacquisitionofLoovee,thebusinessgenerated revenueof approximatelyUS$9.7million (equivalent toHK$75.5million)contributingaround16.4%oftheGroup’stotalrevenue.

(iii) Money lending business

On15November2016,TingoConsultingCompanyLimited (“Tingo”),a subsidiaryoftheCompany,enteredintoaloanagreement(“Loan Agreement”)with鄭聯軍(ZHENGLianjun*)(“Borrower”),abusinessman,andXinKaiHeTradingCo.,Limited(beingtheguarantorof the loanandwhoseequity iswholly-ownedby theBorrower),acompanyincorporatedinHongKong.Pursuant totheLoanAgreement,Tingoagreedtoprovidealoan in theprincipal amountofUS$6,000,000 (equivalent toHK$46,680,000) to theBorrowersubject toandupon the termsandconditions thereof.The loanhasbeen fullysettledon30June2017.Therewasnoloangrantedornonewborrowerduringtheperiodunderreview.

Impairment losses on goodwill

During the period ended 31October 2017, theGroup recognised impairment losses ofUS$13,600,000,US$59,458,000andUS$40,000 inconnectionwithgoodwill allocated totradingandsupplychainmanagementservices,operationofonlinesocialplatformandothersrespectively.TheimpairmentlossesaremadebasedontheresultsofimpairmenttestsforthegoodwillusingtheirvaluesinuseinaccordancewithHKAS36.

–16–

The impairment lossofUS$13,600,000 inconnectionwith thegoodwillallocated to tradingandsupplychainmanagement serviceswasmainly related toanexpected futuredecline inrevenueduetoachallengingbusinessenvironment.

The impairment lossofUS$59,458,000 in connectionwith thegoodwill allocated to theoperationofonline socialplatformwasmainly related to the increase in fairvalueof the150,000,000considerationsharesatthecompletiondateoftheacquisitionofLoovee.

The impairment loss ofUS$40,000was recognised toothers as nomoremoney lendingbusinessisexpectedinthefuture.

Thedetailsofthegoodwillandacquisitionofsubsidiariesaresetoutinnote8andnote11ofthisannouncementrespectively.

Hong Kong Tax Case

Asofthedateofthisannouncement,theGroupreceivedprotectiveassessmentsamountingtoapproximatelyHK$173,000,000 (equivalent toUS$22,237,000) from the IRD in respectofqueries on themodusoperandi of theGroup and the chargeability of theprofits for theassessmentyears from2003/2004 to2010/2011.Objectionshavebeen lodgedby theGroupagainst the protective assessments. In addition,TaxReserveCertificates amounting toHK$5,250,000 (equivalent toUS$675,000)havebeenpurchasedby twosubsidiariesof theCompany inpursuitof theholdoverof taxdemandedunderprotectiveassessments for thoseyears.

Withtheassistanceofanexternaltaxspecialist,theGroupsubmittedasettlementproposalaspartofanegotiationwith the IRD in relation to thiscase inApril2015.Subsequent to thesubmission to the IRD, theGroupkeptclosedialoguewith the IRDandunderstood that theIRDrequiredadditionalevidencefromtheGrouptofurtherassessthetaxposition.Asatthecloseof the reportingperiod, thecasewasstillundernegotiationwith the IRD.Despite theunknownoutcome,theGroupisoftheviewthatsufficienttaxprovisionshavebeenmadeinthefinancialstatementsbasedontheinformationavailable.

Financial Review

Financial Resources and Liquidity

TheGroup’s financial position remains healthywith cash and cash equivalents ofapproximatelyUS$15million (equivalent toHK$116.7million)asat31October2017. Inaddition,theGrouphastotalbankingfacilitiesofapproximatelyUS$10.3million(equivalenttoHK$80million)includingborrowingfacilitiesofapproximatelyUS$0.1million(equivalenttoHK$0.8million)asat31October2017.

TheGrouphasacurrentratioofapproximately1.16andagearingratioofzero,basedonnointerest-bearingborrowingsandtotalequityofapproximatelyUS$111.7million(equivalenttoHK$869million) as at 31October 2017.Therehasnot been anymaterial change in theGroup’sborrowingssince31October2017.

–17–

On21March2017, theGroupentered intoa loanagreementwithaDirector,pursuant towhich theDirectoragreed toprovidea loan facility to theGroup inanaggregateamountofUS$10million (equivalent toHK$77.8million) to finance theacquisitionofLooveeandpossiblefutureacquisitions.Theloanisunsecured,noninterest-bearingandrepayableby20March2018on the first anniversary from thedateof drawdownor such later date tobeagreed.During theperiodunder review,a loanofapproximatelyUS$3.9million (equivalenttoHK$30million)wasdrawndownbytheGroup.

Trade receivables increased from approximatelyUS$5.4million (equivalent toHK$42million)asat30April2017toapproximatelyUS$7million(equivalent toHK$54.5million)asat31October2017.

TheGroup’snetassetvalue recordedasat31October2017wasapproximatelyUS$111.7million(equivalenttoHK$869million).

ThemajorityoftheGroup’stransactionsduringtheperiodunderreviewweredenominatedinUS dollars,HongKong dollars andRenminbi. Tominimise exchange risks, sales andpurchasesaregenerallytransactedinthesamecurrency.

Asat31October2017, theGrouphadnomaterial contingent liabilitiesorguarantees,orchargesonanygroupasset.

Remuneration Policy and Staff Development Scheme

Asat31October2017, theGrouphad412staffmembers (2016:347staffmembers).TotalstaffcostsfortheperiodunderreviewamountedtoapproximatelyUS$7.6million(equivalenttoHK$59.1million)(2016:US$7.1million(equivalenttoHK$55.2million)).

TheGroupoffers competitive remuneration schemes to its employeesbasedon industrypractices,performanceof the individual employeeand thatof theGroup. Inaddition, theCompanyhasadopteda shareoptionschemeforeligiblepersonsanddiscretionarybonusesarepayabletostaffbasedonhisorherindividualperformanceandthatoftheGroup.

Corporate Events during the Reporting Period

Acquisition of a gamified mobile social networking platform in the PRC

On21February2017,awholly-ownedsubsidiaryoftheCompany,GlorySinoenteredintotheAgreementwithindependentthirdpartiestoacquiretheentireissuedsharecapitalofLooveeataconsiderationofHK$800,500,000(equivalenttoUS$102,892,000).

Looveeisprincipallyengagedinthedevelopmentandoperationofamobilesocialnetworkingplatformnamed“Duimian”,oneofthelargestgamifiedmobilesocialnetworkingplatformsinthePRC.

–18–

Pursuant to theAgreement, theconsiderationshallbesatisfiedby(i) theallotmentandissueof 150,000,000 consideration shares of theCompany at an issue price ofHK$4.67 perconsideration share; and (ii) cash consideration ofHK$100,000,000 (equivalent toUS$12,853,000).

Furtherdetailsof theacquisitionaresetout in theannouncementsof theCompanydated21February2017and19April2017,andthecircularoftheCompanydated18April2017.

Theacquisitionwassubsequentlycompletedon1June2017.Theclosingsharepriceof theCompanyon thecompletiondate increased toHK$7.27and the fairvalueof thepurchaseconsideration forLoovee increased to approximatelyHK$1,190,500,000 (equivalent toUS$153,020,000)accordingly.

Share Subdivision

TheexistingissuedandunissuedsharesofUS$0.04eachinthesharecapitaloftheCompanyhasbeendivided into three (3) shareswithparvalueofoneandone thirdU.S.centseach.Therewillbenochange to theboard lot sizeafter thesharesubdivision.Please refer to thesectionheadedbelow“CapitalStructure”fordetails.

Change of financial year end date

TheBoard issuedanannouncementon21September2017 tochange the financialyearenddate of the Company from 30April to 31December (“Change”). Accordingly, theforthcomingfinancialyearenddateoftheCompanywillbe31December2017.

TheChange is intended to facilitate the futuredevelopmentdirectionof theGroup,whosemedium-to-longtermstrategicplanistocontinuetomakestrategicinvestmentsinthePRC.

TheGroup’soperationsaremostlycarriedoutthroughitssubsidiariesestablishedinthePRC,which are statutorily required to close their accounts on the financial year end date of31December (“PRC Operating Subsidiaries”). Since the financial results of thePRCOperatingSubsidiariesaretobeconsolidatedintotheCompany’sconsolidatedaccountseachyear, theChangealigns the financialyearenddateof theCompanywith thePRCOperatingSubsidiaries.This streamlinesand facilitates thepreparationof theconsolidated financialstatementsoftheGroup.

Fortheabovereasons,theBoardbelievesthatitisintheCompany’sintereststhattheChangetobeeffectuated.

Saveasdisclosed in this announcement, therearenoother important events affecting theCompanyanditssubsidiarieswhichhaveoccurredsince31October2017.

–19–

Prospects

Thespreadof the Internethasbroughtworld-shakingchanges to theglobaleconomy.Theincreasedpopularityof the Internethas resulted inhigherdegreeofprice transparencyandpricingpressure,whichisexpectedtocontinuallyposechallengestotraditionalsupplychainmanagement.However,withchallengesoftencomeopportunities,andtherapidgrowthoftheInternethasalsonurturedaneweconomy. Industrieswithin thisneweconomy, includingChina’smobile socialnetworkingsectorwhich theGroupventured intoduring theperiodunder review,haveattracted theworld’sattention.Areport fromAnalysysInternational, theindependentmarket research firm, projects thatChina’smobile social networkmarketpossessesimmensepotentialwiththenumberofusersexpectedtoreach880millionby2018,representingacompoundannualgrowthrateof147.1%between2014and2018.

Foroperationof theGroup’smobile socialnetworkingplatformbusiness, themanagementaimstobuild“Duimian”inthird-andfourth-tiercitiestofurtherbroadenitsuserbase.

Traditionalsourcingandsupplychainmanagementbusinessesareexpectedtobechallenging,theGroupwillcontinuetostrengthenthecooperativerelationshipwithexistingcustomersbydevelopingamorediversifiedproductmixandofferingmorecomprehensivevalue-addedservices.

Lookingahead,themanagementwillexplorethepotentialacquisitionopportunitiesandotherinvestmentsandallocateresourcestothoseprojectswithgreaterdevelopmentpotential.ThisapproachwillhelptheGroupcapturethenewopportunitiesgeneratedwithintheneweconomyandultimatelycreategreatervalueforshareholdersoftheCompany.

CAPITAL STRUCTURE

Issue of Consideration Shares

On21February2017,GlorySino(“Purchaser”),awholly-ownedsubsidiaryoftheCompany,entered into theAgreementwithLeqian InvestmentLimited,MikeCai InvestmentLimited,Mr.TsangChunHoAnthony, SA1 Investments Inc., Lemei InvestmentLimited,LetuInvestmentLimited,Leguang InvestmentLimited,Lehao InvestmentLimitedandLemingInvestmentLimited (together the “Vendors”),Mr.CongweiZhou,Mr.ShengqiCai,Mr.TsangChunHoAnthony,Mr.SungLeeMingAlfred,Ms.JinchunLai,Mr.YoumingZhang,Ms.XinZhang,Mr.QiFengandMr. JinfengLiu (together the“Guarantors”).Pursuant totheAgreement, thePurchaser conditionally agreed tobuyand theVendors conditionallyagreed to sell the entire issued share capital ofLooveeat the aggregate considerationofHK$800,500,000,whichwillbesatisfiedby (i)cashconsiderationofHK$100,000,000;and(ii) allotment and issue of 150,000,000 consideration shares in an aggregate amount ofHK$700,500,000 by theCompany. Further details of the acquisition are set out in theannouncementsof theCompanydated21February2017and19April2017,and thecircularoftheCompanydated28April2017.

–20–

Theacquisitionhasbeenapprovedby theshareholdersof theCompany(“Shareholders”)atthespecialgeneralmeetingoftheCompany(“SGM”)heldon23May2017.On1June2017,uponcompletionof theacquisition, theCompanyallottedand issued150,000,000ordinaryshares under the specificmandate as the consideration shares to theVendors.The cashconsiderationpayableundertheAgreementhasbeenfullysettledinaccordancewiththetermoftheAgreementasatthedateofthisannouncement.

Share Subdivision

Pursuant toanordinary resolutionpassedat theSGMheldon9August2017,everyone (1)existingissuedandunissuedsharewithparvalueofUS$0.04eachinthesharecapitaloftheCompanywassubdividedintothree(3)shareswithparvalueofoneandonethirdU.S.centseachwitheffectfrom10August2017(“Share Subdivision”).UponcompletionoftheShareSubdivision, theauthorisedsharecapitalof theCompanywasUS$40,000,000,divided into3,000,000,000ordinarysharesofoneandone thirdUScentseach,ofwhich1,509,592,701ordinary shareswere issuedand fullypaidorcreditedas fullypaid.Furtherdetailsof theShareSubdivisionaresetoutintheannouncementoftheCompanydated17July2017andthecircularoftheCompanydated24July2017.

INTERIM DIVIDEND

TheBoardhasresolvednottodeclarethepaymentofanyinterimdividendforthesixmonthsended31October2017 (31October2016:0.46HKcents (adjusted for theeffectofShareSubdivisioninAugust2017)pershare).

PURCHASE, SALE OR REDEMPTION OF SHARES

During the sixmonths ended 31October 2017, neither theCompany, nor any of itssubsidiariespurchased,soldorredeemedanyshareoftheCompany.

AUDIT COMMITTEE

TheAuditCommitteehas reviewed theaccountingpoliciesadoptedby theGroup includingreviewoftheunauditedcondensedconsolidatedinterimfinancialinformationoftheGroupforthe sixmonths ended 31October 2017. Such condensed consolidated interim financialinformationhasnot been auditedbut hasbeen reviewedby theCompany’s independentauditor.TheAuditCommitteehasnodisagreementwiththeaccountingtreatmentadoptedbytheCompany.

–21–

CORPORATE GOVERNANCE

AcorporategovernancereporthasbeenpublishedandincludedintheCompany’s2017annualreport, inwhich theCompany reported the adoption of the code provisions (“Code Provisions”) as stated in theCorporateGovernanceCode (“CG Code”) contained inAppendix14 to theListingRulesas thecorporategovernancecodeof theCompany.Duringtheperiodunder review, theCompany fullycompliedwith theCodeProvisions in theCGCode,saveforthedeviationasdescribedbelow:

CodeprovisionE.1.2oftheCGCoderequiresthechairmanoftheBoardtoattendtheannualgeneralmeetingheldon30August2017(“2017 AGM”).Duetootherbusinesscommitments,Mr.ZHOUXijianwasnot able to attend the2017AGM.Mr.WONGHingLin,Dennis,executiveDirectorandpresidentoftheCompany,actedasthechairmanofthe2017AGMtoensureaneffectivecommunicationwiththeShareholders.

ThecorporategovernancepracticesadoptedbytheCompanyduringtheperiodunderreviewareinlinewiththosepracticessetoutintheCompany’s2017annualreport.

MODEL CODE FOR SECURITIES TRANSACTIONS

TheCompanyhasadoptedtheModelCodeforSecuritiesTransactionsbyDirectorsofListedIssuers (“Model Code”) setout inAppendix10 to theListingRulesas itsmodelcode forsecurities transactions by theDirectors.TheCompany, havingmade specific enquiries,obtained confirmations fromall theDirectors that theyhave compliedwith the requiredstandardssetoutintheModelCodethroughoutthesixmonthsended31October2017.

TheCompanyhasalsoestablishedwrittenguidelinesonnolessexactingtermsthantheModelCode (“Employees Written Guidelines”) for securities transactionsby relevantemployeeswhoare likely topossessunpublished inside information in relation to theCompanyor itssecurities.No incident of non-compliance of theEmployeesWrittenGuidelines by therelevantemployeeswasnotedby theCompany throughout thesixmonthsended31October2017.

PUBLICATION OF RESULTS ANNOUNCEMENT AND INTERIM REPORT

ThisannouncementispublishedonthewebsitesoftheCompany(www.daoheglobal.com.hk)andtheStockExchange(www.hkexnews.hk).The2017/18interimreportwillbedespatchedtotheShareholdersandavailableontheabovewebsitesinduecourse.

ByOrderoftheBoardDaohe Global Group Limited

ZHOU XijianChairman and non-executive Director

HongKong,14December2017

As at the date of this announcement, the non-executive Director of the Company is Mr. ZHOU Xijian, the executive Directors are Mr. ZHANG Qi, Mr. WONG Hing Lin, Dennis and Mr. TSANG Chun Ho, Anthony (also known as Zichen), and the independent non-executive Directors are Mr. WANG Arthur Minshiang, Mr. LAU Shu Yan and Mr. ZHANG Huijun.