Longfor : PUBLIC OFFERING OF THE SECOND TRANCHE OF 2020 DOMESTIC CORPORATE BONDS IN THE PRC AND UNAUDITED FINANCIAL INFORMATION OF CHONGQING LONGHU DEVELOPMENT COMPANY LIMITED

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LONGFOR GROUP HOLDINGS LIMITED

龍 湖 集 團 控 股 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 960)

PUBLIC OFFERING OF THE SECOND TRANCHE OF 2020

DOMESTIC CORPORATE BONDS IN THE PRC AND

UNAUDITED FINANCIAL INFORMATION OF

CHONGQING LONGHU DEVELOPMENT COMPANY LIMITED

This announcement is made by Longfor Group Holdings 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 "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Chongqing Longhu Development Company Limited* (重慶龍湖企業拓展有限公司), an indirect subsidiary of the Company established in the People's Republic of China (the "PRC") (the "Issuer"), has received the "Approval Letter for the Public Offering of Domestic Corporate Bonds of Chongqing Longhu Development to Qualified Investors" (Zheng Jian Xu Ke [2020]937) dated 19 May 2020 from China Securities Regulatory Commission whereby the Issuer is permitted to issue the corporate bonds with a principal amount of RMB18 billion. The Approval is valid for twenty-four months commencing from 19 May 2020.

The Issuer will issue the second tranche of 2020 the domestic corporate bonds to qualified investors on 6 and 7 August 2020. The second tranche of the 2020 domestic corporate bonds has a principal amount of not more than RMB3.0 billion (RMB3.0 billion inclusive) (the "Second Tranche of 2020 Domestic Corporate Bonds") and is in two forms: (i) five-year bond, the Issuer shall be entitled to adjust the coupon rate and the investors shall be entitled to sell back the bonds after the end of the third year, and (ii) seven-year bond, the Issuer shall be entitled to adjust the coupon rate and the investors shall be entitled to sell back the bonds after the end of the fifth year. The range of coupon rate of Second Tranche of 2020 Domestic Corporate Bonds for consultation ranges from 3.3% to 4.3% for the five-year bond and ranges from 3.8% to 4.8% for the seven-year bond, respectively. The final coupon rate will be determined on 5 August 2020 based on book-building. The Second Tranche of 2020 Domestic Corporate Bonds are non-guaranteed bonds, and satisfy the basic conditions for conducting securities-pledged repurchase.

Details of the procedures for the application for the Second Tranche of 2020 Domestic Corporate Bonds are published on the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on

4 August 2020. The Issuer has received "AAA" rating from credit rating agency China Chengxin Securities Rating Company Limited* (中誠信證券評估有限公司) on the Issuer and the Second

Tranche of 2020 Domestic Corporate Bonds.

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Pursuant to relevant rules and regulations of the PRC and the requirements of the China Securities Regulatory Commission, the unaudited consolidated financial statements of the Issuer for the three months ended 31 March 2020 (the "Unaudited March Financials") are disclosed in the preliminary offering circular and published on the website of Shanghai Stock Exchange (http://www.sse.com.cn) on 4 August 2020.

Set out below are the key financial figures of the Unaudited March Financials:

	For the three months ended
	31 March 2020
	(unaudited)
	RMB' 000
Current assets	489,477,848.1
Non-current assets	117,976,261.8
Total assets	607,454,109.9
Current liabilities	301,221,855.7
Non-current liabilities	120,339,750.1
Total liabilities	421,561,605.8
Total equity	185,892,504.1
Revenue	7,247,324.1
Net profit after taxation	1,052,047.8
Cash resources#	76,427,326.0

• including restricted bank deposit

Attention of the shareholders and potential investors of the Company is hereby drawn to the fact that the Unaudited March Financials and its summary disclosed in this announcement, which were published on the relevant websites of the PRC, have been prepared in accordance with the PRC Generally Accepted Accounting Principles, which may require adjustment during the course of auditing. Furthermore, the Unaudited March Financials may require adjustment under the International Financial Reporting Standards. The Unaudited Consolidated Financial Information is published pursuant to relevant PRC laws and regulations for the reference of investors of the Second Tranche of 2020 Domestic Corporate Bonds only. In addition, the information contained in the relevant websites in the PRC and this announcement is limited solely to the operation of the Issuer and its subsidiaries, which does not reflect a full picture of operation or status of the Group.

Shareholders of the Company and potential investors should exercise caution when dealing with the securities of the Company and should not rely solely on such information.

By Order of the Board

Longfor Group Holdings Limited

Wu Yajun

Chairperson

Hong Kong, 4 August 2020

As at the date of this announcement, the Board comprises eight members: Madam Wu Yajun, Mr. Shao Mingxiao, Mr. Zhao Yi and Mr. Wang Jiangjian who are executive directors; and Mr. Frederick Peter Churchouse, Mr. Chan Chi On, Derek, Mr. Xiang Bing and Mr. Zeng Ming who are independent non-executive directors.

• for identification purposes only

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