Poly Property : ANNOUNCEMENT MADE PURSUANT TO RULE 13.18 OF THE LISTING RULES

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(Incorporated in Hong Kong with limited liability)

(Stock Code: 00119)

ANNOUNCEMENT MADE PURSUANT TO

RULE 13.18 OF THE LISTING RULES

This announcement is made pursuant to Rule 13.18 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

The board of directors (the "Board") of Poly Property Group Co., Limited (the "Company") announces that on 9 September 2019, the Company (as corporate guarantor), an indirect non-wholly owned subsidiary of the Company (the "Subsidiary") in which the Company holds 70% beneficial interest (as borrower), and Industrial and Commercial Bank of China (Asia) Limited (the "Bank") (as lender) entered into a facility agreement (the "Facility Agreement") for a term loan facility of up to HK$2,900,000,000 (the "Banking Facility"). The final maturity date of the Banking Facility shall be the earlier of (i) the date falling 60 months after the date of the Facility Agreement; and (ii) the date falling 9 months after the date of the certificate of compliance of the government grant concerned. Pursuant to the terms and conditions of the Facility Agreement, the Company shall provide the Bank with the guarantee in proportion to its ultimate beneficial interest in the Subsidiary.

Pursuant to the Facility Agreement, if, among other things, China Poly Group Corporation Limited ("China Poly", the controlling shareholder of the Company) ceases to (a) be the single largest shareholder of the Company, (b) maintain management control of the Board of the Company, or (c) be under the control of the State-owned Assets Supervision and Administration Commission of the State Council of the People's Republic of China, the Bank may declare that all or any part of the advance(s) made by the Bank under the Banking Facility together with interest and any other amounts accrued thereunder be immediately due and payable. As at the date of this announcement, China Poly, through its subsidiaries, holds approximately 47.32% of the total issued ordinary share capital of the Company.

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The Company will make continuing disclosure in its subsequent interim and annual reports pursuant to the requirements of Rule 13.21 of the Listing Rules so long as the abovementioned obligations continue to exist.

By order of the Board

Poly Property Group Co., Limited

ZHANG Bingnan

Chairman

Hong Kong, 9 September 2019

As at the date of this announcement, the executive directors of the Company are Mr. Zhang Bingnan, Mr. Han Qingtao, Mr. Xue Ming, Mr. Wang Xu, Mr. Wang Jian, Mr. Ye Liwen, Mr. Zhu Weirong, and the independent non-executive directors are Mr. Ip Chun Chung, Robert, Mr. Choy Shu Kwan, Miss Leung Sau Fan, Sylvia and Mr. Wong Ka Lun.

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