Star Properties Cayman Islands : SUPPLEMENTARY ANNOUNCEMENT ON POSITIVE PROFIT ALERT

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Star Properties Group (Cayman Islands) Limited

星 星 地 產 集 團 (開 曼 群 島) 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1560)

SUPPLEMENTARY ANNOUNCEMENT

ON POSITIVE PROFIT ALERT

This announcement is made by Star Properties Group (Cayman Islands) Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) of Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

Reference is made to the announcement of the Company dated 20 August 2020 in relation to positive profit alert of the Group for the six months ended 30 June 2020 (the "Positive Profit Alert Announcement").

As disclosed in the Positive Profit Alert Announcement, based on the preliminary review of the unaudited consolidated management accounts of the Group, the Group is expected to record a consolidated net profit for the six months ended 30 June 2020 as compared to a consolidated net loss for the same corresponding period in 2019, which was mainly due to, among others, the completion of the very substantial disposal of the sale share of Rainbow Red Holdings Limited which was an indirectly wholly-owned subsidiary of the Company, and the shareholder's loan (the "VSD Transaction").

The board of directors of the Company (the "Board") wishes to further inform shareholders of the Company (the "Shareholders") and potential investors of the Company that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2020 and the information currently available to the Group, the consolidated net profit before tax for the six months ended 30 June 2020 was approximately HK$350 million as compared to a consolidated net loss for the same corresponding period in 2019 HK$2 million. The consolidated net profit before tax for the six months ended 30 June 2020 was mainly due to the VSD Transaction which was attributed to approximately HK$380 million profit before tax.

The Company is still in the process of finalising the financial results of the Group for the six months ended 30 June 2020. The information contained in this announcement is only based on the preliminary review and analysis of the latest unaudited consolidated management accounts of the Group and the information currently available to the Group and is not based on any figures or information audited or reviewed by the Company's independent auditor, and may be subject to amendments. As such, the above information is provided for the Shareholders' and potential investors' reference only. The Shareholders and potential investors are advised to read carefully in the interim results announcement of the Company which is scheduled to be published on 31 August 2020.

Shareholders and potential investors are advised to exercise caution when dealing in Shares of the

Company.

For and on behalf of the Board

Star Properties Group (Cayman Islands) Limited

Chan Man Fai Joe

Chairman

Hong Kong, 26 August 2020

As at the date of this announcement, the Board comprises four executive Directors, namely Mr. Chan Man Fai Joe (Chairman and chief executive officer), Ms. Cheung Wai Shuen, Mr. Liu Hon Wai and Mr. Pong Kam Keung; one non-executive Director, namely Mr. Yim Kwok Man; and three independent non-executive Directors, namely Dr.

Wong Wai Kong, Mr. Lee Chung Ming Eric and Ms. Chan Wah Man Carman.