Able Engineering Holdings Limited — Capital/Financing Update 2020

Nov 10, 2020

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.

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ABLE ENGINEERING HOLDINGS LIMITED 安保工程控股有限公司

( Incorporated in the Cayman Islands with limited liability ) (Stock Code: 1627)

VOLUNTARY ANNOUNCEMENT

BUSINESS UPDATES IN RELATION TO THE SITE FOR REDEVELOPMENT OF MAN SHUNG INDUSTRIAL BUILDING

Reference is made to the joint announcement made by Vantage International (Holdings) Limited and Able Engineering Holdings Limited (the “ Company ”, together with its subsidiaries, collectively the “ Group ”) dated 7 January 2020 (the “ Announcement ”) and the annual report of the Company for the year ended 31 March 2020 in respect of the proposed redevelopment of the site of No. 7 Lai Yip Street, Kwun Tong, Kowloon, Hong Kong (the “ Site ”). Unless otherwise specified, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

This announcement is made by the Company on a voluntary basis to inform the shareholders and potential investors of the Company of an update of the proposed redevelopment of the Site.

The board of directors (the “ Board ”) of the Company are pleased to announce that on 22 October 2020, LandsD issued a formal written offer (the “ Offer ”), with conditions, in respect of Bright Wind’s proposed modification of the lease of the Site from industrial use to non-residential use (the “ Proposed Lease Modification ”). Pursuant to the Offer, the premium of the Proposed Lease Modification is amounted to HK$554,570,000 (the “ Premium ”) that Bright Wind is required to pay a deposit equal to 10% of the Premium upon acceptance of the Offer and the balance of Premium is payable within three months thereafter. The Board considers the amount of the Premium is at an acceptable level. The Group intends to accept the Offer and to finance the proposed redevelopment, including the Premium and the related development costs by a combination of (i) internal resources of the Group, and (ii) new bank financing to the extent where available.

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Pursuant to the Proposed Lease Modification, the Site will be redeveloped for non-residential use that the total gross floor area of the non-residential building to be erected shall not exceed 14,775 square meters. The non-residential building could provide more flexibility to the Group for its future development with an option to lease out surplus space of the building, if any. The Board has therefore decided to accept the Offer and has instructed the related consultancy firm today, after trading hours, that, an acceptance letter will be delivered to the LandsD before the time limit of 20 November 2020.

The Board wishes to remind the shareholders and potential investors of the Company that the proposed redevelopment of the Site is subject to, among others, the fulfillment of the conditions of the Proposed Lease Modification as stated in the Offer.

By Order of the Board ABLE ENGINEERING HOLDINGS LIMITED NGAI Chun Hung Chairman

Hong Kong, 10 November 2020

As at the date of this announcement, the Board comprises the following Directors:

Executive Directors Independent Non-executive Directors Mr. NGAI Chun Hung Dr. LI Yok Sheung Mr. CHEUNG Ho Yuen Ms. MAK Suk Hing Mr. LAU Chi Fai, Daniel Ms. LEUNG Yuen Shan, Maisy Mr. IP Yik Nam Mr. YAU Kwok Fai

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