Hao Tian Development : Discloseable Transaction in Relation to Provision of Financial Assistance

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(Incorporated in the Cayman Islands with limited liability)

(Stock code: 474) DISCLOSEABLE TRANSACTION IN RELATION TO PROVISION OF FINANCIAL ASSISTANCE

The Board is pleased to announce that on 12 June 2017, the Loan Agreement was entered into between Hao Tian Finance, an indirect subsidiary of the Company as lender, and the Borrower as borrower, pursuant to which, Hao Tian Finance has agreed to provide the Loan in the principal amount of HK$100,000,000 to the Borrower for a term of one month after the Drawdown Date.

As one or more of the applicable percentage ratios under Rule 14.07 of the Listing Rules in respect of the financial assistance given to the Borrower was more than 5% but less than 25%, the Loan advanced under the Loan Agreement constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules and is therefore subject to the reporting and announcement requirements under the Listing Rules.

As the amount of the financial assistance advanced to the Borrower does not exceed 8% of the assets ratio, the grant of the Loan is not subject to the general disclosure obligations under Rule 13.15 of the Listing Rules.

PROVISION OF FINANCIAL ASSISTANCE

On 12 June 2017, Hao Tian Finance entered into the Loan Agreement with the Borrower, pursuant to which Hao Tian Finance has agreed to provide the Loan in the principal amount of HK$100,000,000 to the Borrower for a term of one month after the Drawdown Date.

Loan Agreement

Summarised below are the principal terms of the Loan Agreement. Date : 12 June 2017

Parties

Lender : Hao Tian Finance

Borrower : The Borrower

Principal : HK$100,000,000

The Loan will be available for drawdown upon the satisfaction of certain conditions as set out in the Loan Agreement. Pursuant to the Loan Agreement, the Borrower may within 3 Business Days from the date of the Loan Agreement make a single drawing for the full amount of the Loan.

Interest rate : 15% per annum, which shall be calculated on the actual

number of days elapsed on the basis of 365-day year commencing from the Drawdown Date.

Upfront fee : The Borrower shall on or before the Drawdown Date pay to

the Lender an upfront fee equivalent to 1% of the Loan.

Term : One-month period commencing from the Drawdown Date.

Repayment : The Borrower shall repay the Loan in full principal amount

of the Loan together with outstanding interest accrued thereon on the Maturity Date.

Voluntary Prepayment : The Borrower may repay all or part of the Loan (but if in

part, being an amount in the multiple of HK$1,000,000) together with interest accrued thereon any time prior to the Maturity Date.

Security : No security nor guarantee is provided for the Loan.

To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, the Borrower is a third party independent of the Company and connected persons of the Company.

Funding of the Loan

The Group will finance the loan by the internal resources of the Group.

Information of the Group

The Company is an investment holding company. As at the date of this announcement, the Group is principally engaged in the business of financial services, securities investment, trading of futures, logistics and warehousing, rental and trading of construction machinery.

Reasons for, and benefits of, the Loan Agreement

The terms of the Loan Agreement were negotiated on an arm's length basis between Hao Tian Finance and the Borrower with reference to prevailing market terms. The Directors are of the view that the terms of the Loan Agreement were entered into on a normal commercial terms.

Taking into account the satisfactory financial background of the Borrower, and that revenue and cashflow from the interest income is expected, the Directors consider that the terms of the Loan Agreement and the entering into of the Loan Agreement are fair and reasonable and in the interests of the Company and its shareholders as a whole.

LISTING RULES IMPLICATIONS

The advance of the Loan constitutes financial assistance provided by the Company within the meaning of the Listing Rules.

As one or more of the applicable percentage ratios under Rule 14.07 of the Listing Rules in respect of the financial assistance given to the Borrower was more than 5% but less than 25%, the Loan advanced under the Loan Agreement constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is therefore subject to the reporting and announcement requirements under the Listing Rules but not the shareholders' approval requirement.

As the amount of the financial assistance given to the Borrower does not exceed 8% of the assets ratio, the advance of the Loan is not subject to the general disclosure obligations under Rule 13.15 of the Listing Rules.

DEFINITIONS

In this announcement, unless the context otherwise requires, the words and expressions below shall have the following meanings when used herein:

"Board" the board of Directors;

"Borrower" an individual businessman, the borrower under the Loan Agreement;

"Business Day" a day (other than a Saturday, Sunday and public holidays) on

which commercial banks in Hong Kong are open for general banking transactions;

"Company" Hao Tian Development 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;