New World Department Store China : ANNOUNCEMENT IN RELATION TO RESTORATION OF PUBLIC FLOAT

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.

ANNOUNCEMENT IN RELATION TO RESTORATION OF PUBLIC FLOAT

Reference is made to (i) the announcement dated 28 August 2017 jointly issued by New World Development Company Limited (the ''Offeror'') and New World Department Store China Limited (the ''Company'') in relation to, among other things, the lapse of the Offer; (ii) the announcement of the Company dated 29 August 2017 in relation to the public float of the Company; and (iii) the announcement of the Company dated 8 September 2017 in relation to the grant of Waiver (collectively, the ''Announcements''). Unless otherwise stated, capitalised terms used herein shall have the same meanings as defined in the Announcements.

On 25 October 2017, the Company was informed by the Offeror, being its controlling shareholder, that the Offeror Concert Party (a wholly-owned subsidiary of the Offeror) has disposed of 11,376,000 NWDSC Shares (representing approximately 0.67% of the total issued share capital of the Company as at the date of this announcement) on the open market (the ''Disposal'') for the purpose of restoring the public float of the Company.

To the best knowledge, information and belief of the Board, having made all reasonable enquiries, immediately following the Disposal and as at the date of this announcement, 421,633,000 NWDSC Shares were held by the public, representing approximately 25.01% of the total issued share capital of the Company. Accordingly, the public float of the Company has been restored and the Company is in compliance with Rule 8.08(1)(a) of the Listing Rules.

By order of the board of

New World Department Store China Limited (新世界百貨中國有限公司)

Wu Yuk-Kwai, Catherine

Company Secretary

Hong Kong, 26 October 2017

As at the date of this announcement, the board of directors of the Company comprises (a) two executive directors, namely Dr. Cheng Chi-Kong, Adrian and Mr. Cheung Fai-Yet, Philip; (b) three non-executive directors namely, Dr. Cheng Kar-Shun, Henry, Mr. Au Tak-Cheong and Ms. Ngan Man-Ying, Lynda; and (c) four independent non-executive directors, namely Mr. Cheong Ying-Chew, Henry, Mr. Chan Yiu-Tong, Ivan, Mr. Tong Hang-Chan, Peter and Mr. Yu Chun- Fai.