Kong Shum Union Property Mgmt Hldgs : DISCLOSEABLE TRANSACTION IN RELATION TO THE PROVISION OF FINANCIAL ASSISTANCE

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Kong Shum Union Property Management (Holding) Limited

港深聯合物業管 理（控 股 ）有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8181) DISCLOSEABLE TRANSACTION IN RELATION TO THE PROVISION OF FINANCIAL ASSISTANCE PROVISION OF LOAN

The Board is pleased to announce that after trading hours on 18 July 2017 and 15 August 2017, the Existing Loan Agreement and the Loan Agreement was respectively entered into between the Lender, an indirect wholly-owned subsidiary of the Company, as lender and the Borrower as borrower.

Pursuant to the Existing Loan Agreement and the Loan Agreement, the Lender has agreed to grant the Existing Loan and the Loan to the Borrower for a period of 6 months commencing from the date of the Existing Loan Agreement and the Loan Agreement respectively at an interest rate of 12% per annum.

GEM LISTING RULES IMPLICATIONS

The Loans provided under the Loan Agreements constitute financial assistance provided by the Lender within the meaning of the GEM Listing Rules.

As the aggregate amount of the Loans granted to the Borrower under Chapter 19 of the GEM Listing Rules exceeds 5% but less than 25%, the grant of the Loans constitute a discloseable transaction for the Company. Accordingly, the Loans are subject to the reporting and announcement requirements under Chapter 19 of the GEM Listing Rules.

The Board is pleased to announce that after trading hours on 18 July 2017 and 15 August 2017, the Existing Loan Agreement and the Loan Agreement was respectively entered into between the Lender, an indirect wholly-owned subsidiary of the Company, as lender and the Borrower as borrower.

Pursuant to the Existing Loan Agreement and the Loan Agreement, the Lender has agreed to grant the Existing Loan and the Loan to the Borrower for a period of 6 months commencing from the date of the Existing Loan Agreement and the Loan Agreement respectively at an interest rate of 12% per annum.

Summarized below are the principal terms of the Loan Agreements:

THE LOAN AGREEMENT Date : 15 August 2017 (after trading hours) Lender : Lucky Stone Finance Limited, an indirect wholly-owned subsidiary of the Company Borrower : the Borrower Principal amount : HK$7,000,000Interest : 12% per annumDrawdown date : 15 August 2017 Term : A period of six months commencing from the date of the Loan Agreement Payment : The Borrower shall pay interest of the Loan to the Lender and repay the principal amount of the Loan and interest accrued thereon on or before the end of the term of the Loan (subject to the terms and conditions of the Loan Agreement) Prepayment : The Borrower may, at any time, after giving the Lender not less than one month's prior written notice, prepay the outstanding Loan and interest thereon in accordance with the Loan Agreement Security : One post-dated cheque from the Borrower for the interest accrued on the Loan payable on the date of maturity and one post-dated cheque for the payment of the principal amount of the Loan on the date of maturity drawn on a licensed bank in Hong Kong THE EXISTING LOAN AGREEMENT Date : 18 July 2017 (after trading hours) Lender : Lucky Stone Finance Limited, an indirect wholly-owned subsidiary of the Company Borrower : the Borrower Revolving loan facility

: A revolving loan facility of up to HK$7,000,000 to be made available to the Borrower by the Lender upon the terms and conditions of the Existing Loan Agreement

Existing Loan : The principal amount drawn and for the time being outstanding under the Existing Loan Interest : Interest shall accrue on the principal outstanding balance of the Existing Loan at the rate of 12% per annum (or at such rate as may from time to time determined by the Lender) Drawdown date : the Borrower may, subject to the terms and conditions of the Existing Loan Agreement, on any day and at any time during the subsistence of the Existing Loan Agreement make a drawing under the Existing Loan Term : A period of six months commencing from the date of the Existing Loan Agreement or at such term as may from time to time extended or determined by the Lender Payment : The Borrower shall pay interest of the Existing Loan to the Lender accrued until the total principal outstanding amount together with all interests in or in relation to the Existing Loan are fully settled and repay the principal outstanding balance of the Existing Loan and interest accrued thereon on or before the expiration of the term of the Existing Loan (subject to the terms and conditions of the Existing Loan Agreement) Prepayment : The Borrower may at any time, after giving the Lender prior written notice, prepay the outstanding Loan and interest thereon in accordance with the Existing Loan Agreement Security : Nil FUNDING OF THE ADVANCE

The Loans were/will be financed by the Group's internal resources.

INFORMATION OF THE BORROWER

To the best of the knowledge, information and belief of the Directors having made all reasonable enquiries, the Borrower is a merchant with no default record in our Group and is an Independent Third Party and not connected to the Group.

INFORMATION OF THE GROUP AND THE LENDER

The Group is principally engaged in provision of property management services in Hong Kong primarily targeting residential properties and properties investment. The Lender, being an indirectly wholly-owned subsidiary of the Company principally engaged in the business of money lending service, is a licensed money lender in Hong Kong under the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong).

REASON FOR PROVISION OF THE LOANS

The provision of the Loans will provide reasonable interest income to the Lender and the Loans will be recorded as a loan receivable of the Group.

The terms of the Loans were arrived at after arm's length negotiations between the Lender and the Borrower with reference to the financial background and repayment ability of the Borrower. The Directors consider that the transactions contemplated under the Existing Loan Agreement and the Loan Agreement are in ordinary and usual course of business of the Group and on normal commercial terms and the terms of the Loans are fair and reasonable and in the interests of the Company and its Shareholders as a whole.

IMPLICATIONS UNDER THE GEM LISTING RULES

The Loans provided under the Loan Agreements constitute financial assistance provided by the Lender within the meaning of the GEM Listing Rules.

As the aggregate amount of the Loans granted to the Borrower under Chapter 19 of the GEM Listing Rules exceeds 5% but less than 25%, the grant of the Loans constitute a discloseable transaction for the Company. Accordingly, the Loans are subject to the reporting and announcement requirements under Chapter 19 of the GEM Listing Rules.