Tern Properties : INSIDE INFORMATION PROFIT WARNING

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TERN PROPERTIES COMPANY LIMITED

太 興 置 業 有 限 公 司

(Incorporated in Hong Kong with limited liability)

(Stock code: 277)

INSIDE INFORMATION

PROFIT WARNING

This announcement is made by Tern Properties Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) 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 under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

The board of directors of the Company (the "Board") wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that based on the information currently available to the Board and the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 September 2019 (the "Period"), it is expected (i) to record a significant loss for the Period attributable to owners of the Company as compared to recording a profit for the six months ended 30 September 2018; and (ii) that the total comprehensive expenses attributable to owners of the Company for the Period may record a significant increase as compared with that for the six months ended 30 September 2018. The turnaround of the Group's interim results was primarily attributable to a significant decrease in the fair value of investment properties of the Group during the Period.

However, the Company has yet to finalise the unaudited interim results of the Group for the Period. As such, the information contained in this announcement is only based on the preliminary assessment by the management of the Company with reference to the information currently available including the unaudited consolidated management accounts of the Group, which have not been reviewed by the Company's auditors or the audit committee of the Company and which are therefore subject to adjustments. The actual interim results of the Group for the Period may therefore be different from what is disclosed in this announcement. Shareholders and potential investors are advised to read carefully the interim results announcement of the Company for the Period, which is expected to be published by middle of November 2019.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

Tern Properties Company Limited

Lee Ka Man

Company Secretary

Hong Kong, 1 November 2019

As at the date of this announcement, the Board comprises seven Directors, of which three are Executive Directors, namely Mr. Chan Hoi Sow, Mr. Chan Yan Tin, Andrew and Ms. Chan Yan Wai, Emily, one is Non-Executive Director, namely Ms. Chan Yan Mei, Mary-ellen and three are Independent Non-Executive Directors, namely Mr. Chan Kwok Wai, Mr. Tse Lai Han, Henry and Ms. Cheung Chong Wai, Janet.