Redco Properties : ISSUANCE OF US$300 MILLION 8.5% SENIOR NOTES DUE 2021

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.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities referred to herein will not be registered under the Securities Act, and may not be offered or sold in the United States except pursuant to an exemption from, or a transaction not subject to, the registration requirements of the Securities Act. Any public offering of securities to be made in the United States will be made by means of a prospectus. Such prospectus will contain detailed information about the company making the offer and its management and financial statements. The Company does not intend to make any public offering of securities in the United States.

The communication of this announcement and any other document or materials relating to the issue of the Senior Notes offered hereby is not being made, and such documents and/or materials have not been approved, by an authorized person for the purposes of section 21 of the United Kingdom's Financial Services and Markets Act 2000, as amended (the "FSMA"). Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of such documents and/or materials as a financial promotion is only being made to those persons in the United Kingdom who have professional experience in matters relating to investments and who fall within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Financial Promotion Order")), or who fall within Article 49(2)(a) to (d) of the Financial Promotion Order, or who are any other persons to whom it may otherwise lawfully be made under the Financial Promotion Order (all such persons together being referred to as "relevant persons"). In the United Kingdom, the Senior Notes offered hereby are only available to, and any investment or investment activity to which this announcement relates will be engaged in only with, relevant persons. Any person in the United Kingdom that is not a relevant person should not act or rely on this announcement or any of its contents.

REDCO PROPERTIES GROUP LIMITED

力 高 地 產 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1622)

ISSUANCE OF US$300 MILLION 8.5% SENIOR NOTES DUE 2021

Reference is made to the announcement of the Company dated 11 August 2020 in respect of the proposed Notes Issue.

On 11 August 2020, the Company, together with the Subsidiary Guarantors, entered into the Purchase Agreement with Credit Suisse, UBS, Barclays, BNP PARIBAS, Standard Chartered Bank, Haitong International, Deutsche Bank, HeungKong Financial, Orient Securities (Hong Kong), CRIC Securities and The Bank of East Asia, Limited in connection with the Notes Issue.

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The Company intends to use the net proceeds of the Notes Issue to refinance certain of its existing indebtedness. The Company may adjust its plans in response to changing market conditions and thus, reallocate the use of the net proceeds.

MiFID II professionals / ECPs-only / No PRIIPs KID - Manufacturer target market (MiFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail in EEA or UK.

Application will be made to the SGX-ST for the listing and quotation of the Notes on the SGX-ST. The SGX-ST assumes no responsibility for the correctness of any of the statements made, opinions expressed or reports contained in this announcement. Approval in-principle from, admission to the Official List of, and listing and quotation of the Notes on, the SGX-ST are not to be taken as an indication of the merits of the Company, the Subsidiary Guarantors, the JV Subsidiary Guarantors (if any), the Notes, the Subsidiary Guarantees or the JV Subsidiary Guarantees (if any).

Reference is made to the announcement of the Company dated 11 August 2020 in respect of the proposed Notes Issue. The Board is pleased to announce that on 11 August 2020, the Company, together with the Subsidiary Guarantors, entered into the Purchase Agreement with Credit Suisse, UBS, Barclays, BNP PARIBAS, Standard Chartered Bank, Haitong International, Deutsche Bank, HeungKong Financial, Orient Securities (Hong Kong), CRIC Securities and The Bank of East Asia, Limited in connection with the Notes Issue.

THE PURCHASE AGREEMENT

Date: 11 August 2020

Parties to the Purchase Agreement

1. the Company;
2. the Subsidiary Guarantors;
3. Credit Suisse;
4. UBS;
5. Barclays;
6. BNP PARIBAS;
7. Standard Chartered Bank;

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1. Haitong International;
2. Deutsche Bank;
3. HeungKong Financial;
4. Orient Securities (Hong Kong);
5. CRIC Securities; and
6. The Bank of East Asia, Limited.

Credit Suisse, UBS, Barclays, BNP PARIBAS, Standard Chartered Bank and Haitong International are the joint global coordinators, joint bookrunners and joint lead managers and together with Deutsche Bank, HeungKong Financial, Orient Securities (Hong Kong), CRIC Securities and The Bank of East Asia, Limited as the joint bookrunners and joint lead managers in respect of the offer and sale of the Notes. They are also the initial purchasers of the Notes.

To the best of the Directors' knowledge, information and belief, having made all reasonable enquiries, each of Credit Suisse, UBS, Barclays, BNP PARIBAS, Standard Chartered Bank, Haitong International, Deutsche Bank, HeungKong Financial, Orient Securities (Hong Kong), CRIC Securities and The Bank of East Asia, Limited is an independent third party and not a connected person of the Company and its connected persons.

MiFID II professionals / ECPs-only / No PRIIPs KID- Manufacturer target market (MiFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail in EEA or UK.

The Notes and the Subsidiary Guarantees have not been, and will not be, registered under the Securities Act. The Notes and the Subsidiary Guarantees will only be offered and sold by the initial purchasers of the Notes outside the United States in compliance with Regulation S under the Securities Act, and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. None of the Notes and the Subsidiary Guarantees will be offered to the public in Hong Kong.

Principal terms of the Notes

The following is a summary of certain provisions of the Notes and the Indenture. This summary does not purport to be complete and is qualified in its entirety by reference to the provisions of the Indenture, the Notes, the Subsidiary Guarantees, and the JV Subsidiary Guarantees, if any.

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Notes Offered

Subject to certain conditions to completion, the Company will issue the Notes in the aggregate principal amount of US$300 million. The Notes will mature on 19 August 2021, unless earlier redeemed in accordance with the terms thereof.

Offering Price

The offering price of the Notes will be 98.885% of the principal amount of the Notes.

Interest

The Notes will bear interest from and including 20 August 2020 at the rate of 8.5 % per annum, payable in arrears on 20 February 2021 and 19 August 2021.

Ranking of the Notes

The Notes are (1) general obligations of the Company; (2) senior in right of payment to any existing and future obligations of the Company expressly subordinated in right of payment to the Notes; (3) at least pari passu in right of payment with the certain existing pari passu secured indebtedness and all other unsecured, unsubordinated indebtedness of the Company (subject to any priority rights of such unsecured, unsubordinated indebtedness pursuant to applicable law); (4) guaranteed by the Subsidiary Guarantors and the JV Subsidiary Guarantors, if any, on a senior basis, subject to certain limitations; (5) effectively subordinated to the other secured obligations (if any, other than permitted pari passu secured indebtedness) of the Company, the Subsidiary Guarantors and the JV Subsidiary Guarantors, to the extent of the value of the assets serving as security therefor (other than the collateral securing the Notes); and (6) effectively subordinated to all existing and future obligations of the subsidiaries of the Company which are not providing guarantees under the Notes.

Events of default

The events of default under the Notes include, among others: (a) default in the payment of principal of (or premium, if any, on) the Notes when the same becomes due and payable at maturity, upon acceleration, redemption or otherwise; (b) default in the payment of interest on any Note when the same becomes due and payable, and such default continues for a period of 30 consecutive days; (c) default in the performance or breach of the provisions of certain covenants under the Indenture relating to consolidation, merger and sale of assets, the failure by the Company to make or consummate an offer to purchase in the manner described in the Indenture;

1. default by the Company or certain of its subsidiaries in the performance of or breaches of any other covenant or agreement in the Indenture or under the Notes (other than a default specified in clause (a), (b) or (c) above) and such default or breach continues for a period of 30 consecutive days after written notice by the trustee or the holders of 25% or more in aggregate principal amount of the Notes; (e)

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there occurs with respect to any indebtedness of the Company or certain of its subsidiaries having an outstanding principal amount of US$10.0 million or more in the aggregate for such indebtedness (i) an event of default that has caused the holder of such indebtedness to declare such indebtedness to be due and payable prior to its stated maturity and/or (ii) the failure to make a principal payment when due; (f) one or more final judgments or orders for the payment of money are rendered against the Company or certain of its subsidiaries and are not paid or discharged, and there is a period of 60 consecutive days following entry of the final judgment or order that causes the aggregate amount for all such final judgments or orders outstanding and not paid or discharged against all such persons to exceed US$10.0 million (in excess of amounts which the Company's insurance carriers have agreed to pay under applicable policies) during which a stay of enforcement, by reason of a pending appeal or otherwise, is not in effect; (g) an involuntary case or other proceeding is commenced against the Company or any of its significant subsidiaries (or any group of subsidiaries that together would constitute a significant subsidiary) with respect to it or its debts under any applicable bankruptcy, insolvency or similar law in effect seeking the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company or any significant subsidiary, or for any substantial part of the property and assets of the Company or any significant subsidiary (or any group of restricted subsidiaries that together would constitute a significant subsidiary) and such involuntary case or other proceeding which remains undismissed and unstayed for a period of 60 consecutive days, or an order for relief is entered against the Company or any significant subsidiary (or any group of restricted subsidiaries that together would constitute a significant subsidiary) under any applicable bankruptcy, insolvency or other similar law as now or hereafter in effect; (h) voluntary bankruptcy or insolvency proceedings commenced by the Company or any of its significant subsidiaries (or any group of subsidiaries that together would constitute a significant subsidiary); or consent to the entry of an order for relief in an involuntary case under any such law; or consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company or any of the Company's significant subsidiaries (or any group of subsidiaries that together would constitute a significant subsidiary) or for all or substantially all of the property and assets of the Company or any of its significant subsidiaries (or any group of subsidiaries that together would constitute a significant subsidiary); or effects any general assignment for the benefit of creditors; (i) any Subsidiary Guarantor or JV Subsidiary Guarantor denying or disaffirming its obligations under its Subsidiary Guarantee or JV Subsidiary Guarantee or, except as permitted by the Indenture, any Subsidiary Guarantee or JV Subsidiary Guarantee being determined to be unenforceable or invalid or for any reason ceasing to be in full force and effect; (j) any default by the Company or any Subsidiary Guarantor Pledgor in the performance of any of its obligations under the Indenture and the security documents, which adversely affects the enforceability, validity, perfection or priority of the applicable lien on the collateral or which adversely affects the condition or value of such collateral, taken as a whole, in any material respect; or (k) the Company or any Subsidiary Guarantor Pledgor denying

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or disaffirming its obligations under the any security document or, other than in accordance with the Indenture and the security documents, any security document ceasing to be or is not in full force and effect, or the collateral agent ceasing to have a first priority security interest in the collateral.

If an event of default (other than the default specified in clause (g) and (h) above) occurs and is continuing under the Indenture, the trustee or the holders of at least 25% in aggregate principal amount of the Notes then outstanding, by written notice to the Company (and to the trustee if such notice is given by the holders) may, and the trustee at the request of such holders shall, declare the principal of, premium, if any, and accrued and unpaid interest on the Notes to be immediately due and payable. Upon a declaration of acceleration, such principal of, premium, if any, and accrued and unpaid interest shall be immediately due and payable. If an event of default specified in (g) and (h) above occurs with respect to the Company or any of its significant subsidiary (or any group of subsidiaries that together would constitute a significant subsidiary), the principal of, premium, if any, and accrued and unpaid interest on the Notes then outstanding shall automatically become and be immediately due and payable without any declaration or other act on the part of the trustee or any holder.

Covenants

The Notes, the Indenture and the Subsidiary Guarantees will limit the Company's ability and the ability of certain of its subsidiaries to, among other things:

1. incur or guarantee additional indebtedness and issue disqualified or preferred stock;
2. declare dividends on their capital stock or purchase or redeem capital stock;
3. make investments or other specified restricted payments;
4. issue or sell capital stock of certain of its subsidiaries;
5. guarantee indebtedness of certain of its subsidiaries;
6. sell assets;
7. create liens;
8. enter into sale and leaseback transactions;
9. enter into agreements that restrict certain of its subsidiaries' ability to pay dividends, transfer assets or make intercompany loans;

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1. enter into transactions with shareholders or affiliates; and
2. effect a consolidation or merger.

Optional Redemption of the Notes

The Notes may be redeemed in the following circumstances:

1. At any time and from time to time following the occurrence of the NDRC registration, the Company may redeem the Notes, in whole or in part, at a redemption price equal to 101% of the principal amount of the Notes, together with accrued and unpaid interest, if any, to (but not including), the redemption date.
2. At any time prior to 19 August 2021, the Company may at its option redeem the Notes, in whole but not in part, at a redemption price equal to 100% of the principal amount of the Notes redeemed plus the applicable premium as of, and accrued and unpaid interest, if any, to (but not including) the redemption date. The Company will give not less than 15 days' nor more than 30 days' notice of any redemption.
3. At any time and from time to time prior to 19 August 2021, the Company may redeem up to 35% of the aggregate principal amount of the Notes with the net cash proceeds of one or more sales of common stock of the Company in an equity offering at a redemption price of 108.5% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to (but not including) the redemption date; provided that at least 65% of the aggregate principal amount of the Notes originally issued on the original issue date remains outstanding after each such redemption and any such redemption takes place within 60 days after the closing of the related equity offering.

Reasons for the Notes Issue

The Group is an integrated property developer focusing on mid-to-high-end residential and commercial property development in the PRC.

The Company intends to use the net proceeds of the Notes Issue to refinance certain of its existing indebtedness. The Company may adjust its plans in response to changing market conditions and thus, reallocate the use of the net proceeds.

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Listing

Application will be made to the SGX-ST for the listing and quotation of the Notes on the SGX-ST. The SGX-ST assumes no responsibility for the correctness of any of the statements made, opinions expressed or reports contained in this announcement. Approval in-principle from, admission to the Official List of, and listing and quotation of the Notes on, the SGX-ST are not to be taken as an indication of the merits of the Company, the Subsidiary Guarantors, the JV Subsidiary Guarantors (if any), the Notes, the Subsidiary Guarantees or the JV Subsidiary Guarantees (if any).

No listing of the Notes has been or will be sought in Hong Kong.

DEFINITIONS

In this announcement, the following expressions shall have the meanings set forth below unless the context requires otherwise:

"Barclays"	Barclays Bank PLC
"BNP PARIBAS"	BNP Paribas
"Board"	the board of Directors
"Company"	Redco Properties Group Limited, a company
	incorporated in the Cayman Islands with limited
	liability, the shares of which are listed on the main
	board of the Stock Exchange
"connected person(s)"	has the meaning ascribed to it under the Rules
	Governing the Listing of Securities on The Stock
	Exchange of Hong Kong Limited
"Credit Suisse"	Credit Suisse (Hong Kong) Limited
"CRIC Securities"	CRIC Securities Company Limited
"Deutsche Bank"	Deutsche Bank AG, Singapore Branch
"Directors"	the directors of the Company
"Group"	the Company and its subsidiaries
"Haitong International"	Haitong International Securities Company Limited
"HeungKong Financial"	HeungKong Securities Limited
"Hong Kong"	the Hong Kong Special Administrative Region of
	the People's Republic of China

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"Indenture"	the written agreement to be entered into between
	the Company, the Subsidiary Guarantors as
	guarantors and a trustee, that specifies the terms
	and conditions of the Notes including the
	covenants, events of default, interest rate of the
	Notes and the maturity date
"JV Subsidiary Guarantee"	limited recourse guarantees given by the JV
	Subsidiary Guarantors on the Notes
"JV Subsidiary Guarantor"	each subsidiary of the Company which in the future
	provides a JV Subsidiary Guarantee
"NDRC"	the National Development and Reform Commission
	of the PRC or its local counterparts
"Notes"	the 8.5% senior notes due 2021 in the aggregate
	principal amount of US$300 million to be issued by
	the Company
"Notes Issue"	the issue of the Notes by the Company
"Orient Securities	Orient Securities (Hong Kong) Limited
(Hong Kong)"
"PRC"	the People's Republic of China, excluding Hong
	Kong, Macao Special Administrative Region of the
	People's Republic of China and Taiwan for the
	purpose of this announcement
"Purchase Agreement"	the agreement dated 11 August 2020 entered into
	by and among Credit Suisse, UBS, Barclays, BNP
	PARIBAS, Standard Chartered Bank, Haitong
	International, Deutsche Bank, HeungKong
	Financial, Orient Securities (Hong Kong), CRIC
	Securities, The Bank of East Asia, Limited, the
	Company and the Subsidiary Guarantors in relation
	to the Notes Issue
"Securities Act"	the United States Securities Act of 1933, as
	amended
"SGX-ST"	Singapore Exchange Securities Trading Limited
"Standard Chartered Bank"	Standard Chartered Bank
"Stock Exchange"	The Stock Exchange of Hong Kong Limited

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"Subsidiary Guarantees"	the guarantees provided by the Subsidiary
	Guarantors in respect of the Notes
"Subsidiary Guarantors"	certain subsidiaries of the Company that on the
	issue date of the Notes will provide guarantees to
	secure the Company's obligations under the Notes
"The Bank of East Asia,	The Bank of East Asia, Limited
Limited"
"UBS"	UBS AG Hong Kong Branch (UBS AG is
	incorporated in Switzerland with limited liability)
"United States"	the United States of America
"U.S. Dollars" or "US$"	United States dollar(s), the lawful currency of the
	United States
"%"	per cent.
	By Order of the Board
	Redco Properties Group Limited
	Wong Yeuk Hung
	Chairman
Hong Kong, 12 August 2020

As at the date of this announcement, the executive directors of the Company are Mr. Wong Yeuk Hung, Mr. Huang Ruoqing and Mr. Tang Chengyong; and the independent non-executive directors of the Company are Dr. Wong Yau Kar, David GBS, BBS, JP, Mr. Chau On Ta Yuen SBS, BBS and Mr. Yip Tai Him.

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