Prosperity Investment : UPDATE ON DIRECTOR'S INFORMATION PURSUANT TO RULE 13.51(2)(l) AND RULE 13.51B(2) OF THE LISTING RULES

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PROSPERITY INVESTMENT HOLDINGS LIMITED 嘉進投資國際有限公司*

(Incorporated in Bermuda with limited liability)

(Stock Code: 310)

UPDATE ON DIRECTOR'S INFORMATION PURSUANT TO RULE 13.51(2)(l) AND RULE 13.51B(2)

OF THE LISTING RULES

This announcement is made by Prosperity Investment Holdings Limited (the "Company") pursuant to Rule 13.51B(2) of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") in respect of the change in information regarding its non-executive director, namely Mr. Lau Tom Ko Yuen ("Mr. Lau").

Mr. Lau is also a director of PYI Management Limited ("PML"), an indirect wholly-owned subsidiary of PYI Corporation Limited (Stock Code: 498) ("PYI"). According to an announcement made by PYI on 9

March 2021 (the "PYI Announcement"), the sole shareholder of PML has resolved on 9 March 2021 (after trading hours) that steps should be taken immediately to place PML into creditors' voluntary liquidation (the "Liquidation").

As disclosed in the PYI Announcement, on 9 March 2021 (after trading hours), the board of directors of PML resolved that:

• (a) a general meeting of PML be convened at which a resolution for voluntary winding-up will be proposed; and

• (b) a meeting of the creditors of PML be convened for the purposes of the Liquidation.

As further disclosed in the PYI Announcement: (i) PML was incorporated on 3 December 1992 with limited liability under the Hong Kong Companies Ordinance; (ii) the principal activity of PML is provision of management and financial services; (iii) based on the audited financial statements of PML for the year ended 31 March 2020, the net current liability was approximately HK$1,469.1 million whereas the net liability was approximately HK$1,618.1 million as at 31 March 2020. The total liability of PML was approximately HK$3,021.0 million as at 31 March 2020; (iv) based on the management accounts of PML for the ten months ended 31 January 2021, the total liability of PML increased by approximately 5.9% from approximately HK$3,021.0 million as at 31 March 2020 to approximately HK$3,198.6 million as at 31 January 2021; (v) in view of the insolvency of PML as of 31 March 2020 and 31 January 2021, the sole shareholder of PML resolved to approve and place PML into creditors' voluntary liquidation; and (vi) the Liquidation of PML shall have no material adverse impact to the financial performance and operation of the existing business of PYI group.

Mr. Lau confirmed that, save as disclosed above, there is no other information that is required to be disclosed pursuant to Rule 13.51(2)(l) of the Listing Rules.

By Order of the Board

Prosperity Investment Holdings Limited

Yau Wing Yiu

Company Secretary

Hong Kong, 15 March 2021

* For identification purpose only

As at the date of this announcement, the Board comprises one executive director, namely Mr. Cheng Hairong, one non-executive director, namely Mr. Lau Tom Ko Yuen and three independent non-executive directors, namely Mr. Feng Nien Shu, Mr. Lui Siu Tsuen, Richard and Ms. Wong Lai Kin, Elsa.