Guangzhou R&F Properties Co., Ltd. — Capital/Financing Update 2021

Jan 19, 2021

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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COMPLETION OF DISCLOSEABLE TRANSACTION

Reference is made to the announcement of Guangzhou R&F Properties Co., Ltd. dated 9 November 2020 (the “ Announcement ”) in relation to the transfer of interest in the Properties located at Guangzhou International Airport R&F Integrated Logistics Park, the People’s Republic of China. Unless otherwise specified, capitalised terms used in this announcement have the same meanings set out in the Announcement.

The Board is pleased to announce that Closing has taken place on 19 January 2021. As a result, the Target Company has been merged with and into the Merger Sub which indirectly holds the Properties and is owned as to 70% by the Purchaser (a subsidiary formed under funds affiliated with The Blackstone Group Inc.) and as to 30% by the Seller (a wholly-owned subsidiary of the Company). Upon Closing, the Company will receive payments of totaling approximately RMB4,062 million. The Board intends to apply the net proceeds from the Merger and related transactions to lower the gearing and as general working capital of the Group.

As indicated in the Announcement, the Merger enables the Group to monetise the value in its investment in the Properties accumulated over a period of time since investment and to reduce the gearing ratio, which would in turn increase the financial flexibility of the Group and enhance its capability to capture future development and investment opportunities. Additionally, the Merger is expected to bring about strategic benefit for the Group, as the Group is expected to develop a long-term partnership with Blackstone, a renowned investor, to invest in and manage the Properties, which will strengthen the corporate profile and support the growth and development of the Properties.

The Merger is beneficial to the Group in optimizing the allocation of resources, focusing on the development of its core business, increasing its capital reserve and reducing its gearing ratio, which is conducive to the Group’s ability to reduce risks and achieve long-term stable and healthy development.

By order of the Board Guangzhou R&F Properties Co., Ltd. Li Sze Lim Chairman

Hong Kong, 19 January 2021

As at the date of this announcement, the executive directors of the Company are Dr. Li Sze Lim, Mr. Zhang Li, Mr. Zhang Hui and Mr. Xiang Lijun; the non-executive directors are Ms. Zhang Lin and Ms. Li Helen; and the independent non-executive directors are Mr. Zheng Ercheng, Mr. Ng Yau Wah, Daniel and Mr. Wong Chun Bong.

• For identification purpose only