Oriental Press : Discloseable Transaction Provision of Loan

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.

(Incorporated in Hong Kong with limited liability)

(Stock Code: 18)

DISCLOSEABLE TRANSACTION

PROVISION OF LOAN

The Board announces that on 9 October 2019 (after trading hours), the Loan Agreement was entered into between OFA, a wholly-owned subsidiary of the Company as lender, and the Customer as borrower, pursuant to which OFA agreed to grant a secured loan in the principal amount of HK$80 million to the Customer for a term of 12 months.

As some of the applicable percentage ratios under Rule 14.07 of the Listing Rules in respect of the Loan exceed 5% but are less than 25%, the grant of the Loan 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.

INTRODUCTION

The Board announces that on 9 October 2019 (after trading hours), the Loan Agreement was entered into between OFA, a wholly-owned subsidiary of the Company as lender, and the Customer as borrower, pursuant to which OFA agreed to grant a secured loan in the principal amount of HK$80 million to the Customer for a term of 12 months.

THE LOAN AGREEMENT

The principal terms of the Loan Agreement are set out below:

Date of the Loan Agreement:	9 October 2019
Lender:	OFA
Borrower:	Customer
Principal:	HK$80 million
Interest rate:	0.75% per month (i.e. 9% per annum)
Term:	12 months commencing from the Drawdown Date
Repayment:	Customer shall repay the principal amount of the Loan at maturity

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Early repayment:	Customer shall have an option to make early repayment of the
	Loan after the Drawdown Date subject to the Customer giving
	OFA not less than 1 month's advance notice in writing
Security:	(1) Property mortgage: an all-money first legal charge in favour
	of OFA in respect of 7 shop units and 2 car parking spaces
	located in Prince Edward, Kowloon, which are valued by an
	independent property valuer at HK$165 million on 2 July
	2019
	(2) Personal guarantee by the Customer's sole shareholder in
	favour of OFA

FUNDING OF THE LOAN

OFA will finance the Loan with the Group's internal resources.

INFORMATION OF THE CUSTOMER

The Customer is a property holding company incorporated in Hong Kong with limited liability and was introduced to OFA through its network. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, the Customer and its ultimate beneficial owner are Independent Third Parties.

INFORMATION OF THE GROUP AND THE LENDER

The Company is an investment holding company and is the holding company of the Group. The Group is principally engaged in publication of newspapers and money lending business. OFA is a wholly-owned subsidiary of the Company and is a licensed money lender, principally engaged in the business of money lending in Hong Kong.

REASONS FOR AND BENEFITS OF ENTERING INTO THE LOAN AGREEMENT

Taking into account the principal business of OFA, the grant of the Loan to the Customer pursuant to the Loan Agreement is in the ordinary course of business of OFA.

Given that the terms of the Loan Agreement were negotiated on an arm's length basis between OFA and the Customer with reference to OFA's credit policy and the prevailing market rate, and the Loan can generate a stable revenue and cash flow stream to the Group from interest income, the Directors are of the view that the terms of the Loan Agreement and the entering into the Loan Agreement are fair and reasonable and in the interest of the Company and its shareholders as a whole.

LISTING RULES IMPLICATIONS

As some of the applicable percentage ratios under Rule 14.07 of the Listing Rules in respect of the Loan exceed 5% but are less than 25%, the grant of the Loan 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.

DEFINITIONS

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

"Board"

the board of Directors

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"Company"

"connected person" "Customer"

"Director(s)"

"Drawdown Date" "Group" "HK$"

"Hong Kong"

"Independent Third Party"

"Listing Rules" "Loan"

"Loan Agreement" "OFA"

"Stock Exchange"

Hong Kong, 9 October 2019

Oriental Press Group Limited, a company incorporated in Hong Kong with limited liability whose shares are listed on the main board of the Stock Exchange

has the meaning ascribed thereto under the Listing Rules

Huge Grand Limited, a company incorporated in Hong Kong with limited liability, being the borrower under the Loan Agreement and an Independent Third Party

the director(s) of the Company

10 October 2019

the Company and its subsidiaries

Hong Kong dollars, the lawful currency of Hong Kong

the Hong Kong Special Administrative Region of the People's Republic of China

third party that is independent of the Company and connected persons of the Company

the Rules Governing the Listing of Securities on the Stock Exchange

the secured loan with a principal amount of HK$80 million to be granted by OFA to the Customer pursuant to the Loan Agreement

the loan agreement dated 9 October 2019 entered into between OFA and the Customer in respect of the Loan

Oriental FA Limited, a company incorporated in Hong Kong with limited liability with money lenders licence registered under the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong), which is a wholly-owned subsidiary of the Company

The Stock Exchange of Hong Kong Limited

By order of the Board

Oriental Press Group Limited

Ching-fat MA

Chairman

As at the date hereof, the Board comprises seven Directors, of which three are executive Directors, namely Mr. Ching- fat MA (Chairman), Mr. Ching-choi MA (Vice Chairman) and Mr. Shun-chuen LAM (Chief Executive Officer), one non- executive Director, namely Mr. Dominic LAI and three independent non-executive Directors, namely Mr. Yau-nam CHAM, Mr. Ping-wing PAO and Mr. Yat-fai LAM.

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