HC : VOLUNTARY ANNOUNCEMENT EARLY REDEMPTION OF GUARANTEED AND SECURED NOTES

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.

HC GROUP INC.

慧聰集團有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 02280)

VOLUNTARY ANNOUNCEMENT

EARLY REDEMPTION OF GUARANTEED AND SECURED NOTES

Reference is made to the announcements of HC Group Inc. (the "Company") dated 16 November 2018 and 04 December 2018 (the "Announcements") in relation to, inter alia, the issue of HK$350,000,000 2.85% plus HIBOR guaranteed and secured notes. Unless otherwise stated, capitalized terms used herein shall have the same meanings as defined in the Announcements.

The Company announces that as of the date of this announcement, the Company has already effected an early redemption of part of the outstanding Notes at the principal amount of HK$250,000,000 (the "Early Redemption"). The fund for the Early Redemption was satisfied by the existing internal resources of the Group.

As at the date of this Agreement, HK$100,000,000 of the principal amount of the Notes remain outstanding. The Directors consider that the Early Redemption reduces the Group's debt and interest expenses and lowers gearing ratio, thereby improving the corporate capital structure. Therefore, the Directors are of the view that the Early Redemption is in the interests of the Group and the Shareholders as a whole. The Directors are also of the view that the Early Redemption does not result in any material adverse impact on the operation and financial position of the Group.

By Order of the Board

HC Group Inc.

Liu Jun

Chairman

Hong Kong, 31 August 2020

- 1 -

As at the date of this announcement, the Board comprises:

Mr. Liu Jun (Executive Director and Chairman)

Mr. Zhang Yonghong (Executive Director and Chief Executive Officer) Mr. Liu Xiaodong (Executive Director and President)

Mr. Guo Fansheng (Non-executive Director) Mr. Sun Yang (Non-executive Director) Mr. Lin Dewei (Non-executive Director)

Mr. Zhang Ke (Independent non-executive Director)

Mr. Zhang Tim Tianwei (Independent non-executive Director) Ms. Qi Yan (Independent non-executive Director)

- 2 -