Star Properties Cayman Islands : POSITIVE PROFIT ALERT AND RESUMPTION OF TRADING

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Star Properties Group (Cayman Islands) Limited 星星地產集團 (開曼群島) 有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1560)

POSITIVE PROFIT ALERT

AND

RESUMPTION OF TRADING

This announcement is made by Star Properties Group (Cayman Islands) Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) of Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

The board of directors of the Company (the "Board") wishes to inform the shareholders of the Company (the "Shareholders") and its potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2017 and the information currently available to the Group, it is expected that the Group will record an increase of no less than 50% in profit attributable to the Shareholders for the year ended 31 December 2017 as compared to that for the year ended 31 December 2016. Such increase was primarily due to the revenue recognition from the completed project, namely The Star, an industrial building developed by the Group, which is situated at the Remaining Portion of Section B of Lot No. 693 in Demarcation District No. 445, Kwai Chung, New Territories, Hong Kong of approximately HK$714 million.

The Company is still in the process of finalising the financial results of the Group for the year ended 31

December 2017. The information contained in this announcement is only preliminary review and analysis made by the Board with reference to the latest unaudited consolidated management accounts of the Group and the information currently available to the Group which has not been audited or reviewed by the Company's independent auditor and the audit committee of the Company, and may be subject to amendments. As such, the above information is provided for the Shareholders' and potential investors' reference only. The Shareholders and potential investors are advised to refer to details in the final results announcement of the Group which is expected to be published at the end of February 2018.

RESUMPTION OF TRADING

Trading in the shares of the Company on the Stock Exchange has been halted at 2:07 p.m. on 31 January 2018. Application has been made by the Company to the Stock Exchange for resumption of trading of the shares of the Company with effect from 9:00 a.m. on 1 February 2018.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in shares of the Company.

For and on behalf of the Board

Star Properties Group (Cayman Islands) Limited

Chan Man Fai Joe

Chairman

Hong Kong, 31 January 2018

As at the date of this announcement, the Board consists of eight Directors comprising three executive Directors, namely Mr. Chan Man Fai Joe (Chairman), Ms. Cheung Wai Shuen and Mr. Liu Hon Wai; two non-executive Directors, namely Mr. Pong Kam Keung and Mr. Yim Kwok Man; and three independent non-executive Directors, namely Mr. Shiu Siu Tao, Mr. Lee Chung Ming Eric and Ms. Chan Wah Man Carman.