Redco Properties Group Limited — Capital/Financing Update 2014

Jan 21, 2014

Unless otherwise defined in this announcement, terms defined in the prospectus dated 21 January 2014 (the “Prospectus”) issued by Redco Properties Group Limited (the “Company”) have the same meanings when used in this announcement.

Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) and Hong Kong Securities Clearing Company Limited (“HKSCC”) 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.

This announcement is for information purposes only and does not constitute an invitation or offer or an invitation to induce and offer by any person to acquire, purchase or subscribe for securities or any Shares under the Global Offering. This announcement is not, and is not intended to be, an offer of securities of the Company for sale in any jurisdiction, including, without limitation, the United Kingdom, Australia, Japan, Canada or the United States. The Shares of the Company have not been, and will not be, registered under the United States Securities Act 1933, as amended from time to time (the “U.S. Securities Act”), or the securities laws of any state of the United States, and may not be offered or sold within the United States (as defined in Regulation S under the U.S. Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and any applicable state or local securities law. The Hong Kong Offer Shares are being offered and sold outside of the United States in offshore transactions in accordance with Regulation S under the U.S. Securities Act. There will not be any public offering of securities in the United States. This announcement and the information contained herein are not for release, publication or distribution, directly or indirectly, in or into the United States.

In connection with the Global Offering, Kingston Securities Limited (the “Stabilising Manager”), its affiliates or any person acting for it, as stabilising manager on behalf of the Underwriters, may, to the extent permitted by applicable laws of Hong Kong or elsewhere, over-allocate or effect any other transactions with a view to stabilising or maintaining the market price of our Shares at a level higher than that which might otherwise prevail in the open market for a limited period after the Listing Date. However, there is no obligation on the Stabilising Manager, its affiliates or any person acting for it, to conduct any such stabilising activity, which if commenced, will be done at the absolute discretion of the Stabilising Manager, its affiliates or any person acting for it, and may be discontinued at any time. Any such stabilising activity is required to be brought to an end within 30 days of the last day for the lodging of applications under the Hong Kong Public Offer. Such stabilisation action, if commenced, may be effected in all jurisdictions where it is permissible to do so, in each case, in compliance with all applicable laws, rules and regulatory requirements, including the Securities and Futures (Price Stabilizing) Rules, as amended, made under the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong). The details of the intended stabilisation and how it will be regulated under the Securities and Futures Ordinance are set out in the section headed “Structure of the Global Offering” in the Prospectus.

Potential investors should read the Prospectus for detailed information about the Global Offering described below before deciding whether or not to invest in the Shares thereby being offered. Any investment decision in relation to the Offer Shares should be taken solely in reliance on the information provided in the Prospectus.

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REDCO PROPERTIES GROUP LIMITED 力高地產集團有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 1622)

GLOBAL OFFERING

Number of Offer Shares : 400,000,000 Shares (subject to the under the Global Offering Over-allotment Option) Number of Hong Kong Offer Shares : 40,000,000 Shares (subject to adjustment) Number of International Placing Shares : 360,000,000 Shares (subject to adjustment and the Over-allotment Option) Maximum Offer Price : HK$2.60 per Hong Kong Offer Share (payable in full on application, subject to refund on final pricing, plus brokerage of 1.0%, SFC transaction levy of 0.003% and Stock Exchange trading fee of 0.005%) Nominal Value : HK$0.10 each Stock Code : 1622

Sole Sponsor

Joint Global Coordinators and Joint Bookrunners

Joint Lead Managers

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Application has been made to the Listing Committee of the Stock Exchange for the granting of the approval for the listing of, and permission to deal in, the Shares in issue and to be issued under the Global Offering (being 400,000,000 new Shares and any Shares which may be issued upon the exercise of the Over-allotment Option), Shares to be issued under the Capitalisation Issue and any Shares which may be issued pursuant to the exercise of options which may be granted under the Share Option Scheme. Assuming the Hong Kong Public Offer becomes unconditional at or before 8:00 a.m. on Thursday, 30 January 2014, it is expected that dealings in the Shares on the Main Board of the Stock Exchange are expected to commence at 9:00 a.m. on Thursday, 30 January 2014. In the event the Over-allotment Option is exercised, an announcement will be made by the Company.

The Global Offering comprises the Hong Kong Public Offer of 40,000,000 Shares (subject to adjustment), and the International Placing of 360,000,000 Shares (subject to adjustment and the Over-allotment Option). The allocation of the Offer Shares between the Hong Kong Public Offer and the International Placing will be subject to adjustment as described in the section headed “Structure of the Global Offering” in the Prospectus.

Subject to the granting of the approval for the listing of, and permission to deal in, the Shares on the Stock Exchange and compliance with the stock admission requirements of HKSCC, the Shares will be accepted as eligible securities by HKSCC for deposit, clearance and settlement in CCASS with effect from the date of commencement of dealings in the Shares on the Stock Exchange or on any other date HKSCC chooses. Settlement of transaction between participants of the Stock Exchange is required to take place in CCASS on the second business day after any trading day. All activities under CCASS are subject to the General Rules of CCASS and CCASS Operational Procedures in effect from time to time. All necessary arrangements have been made to enable the Shares to be admitted into CCASS.

The Offer Price will not be more than HK$2.60 per Offer Share and is currently expected to be not less than HK$2.10 per Offer Share, unless otherwise announced. Applicants for the Hong Kong Offer Shares are required to pay, on application, the maximum Offer Price of HK$2.60 per Offer Share together with brokerage of 1%, SFC transaction levy of 0.003% and Stock Exchange trading fee of 0.005%, subject to refund if the Offer Price as finally determined is less than HK$2.60 per Offer Share.

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Applications for the Hong Kong Offer Shares will only be considered on the basis of the terms and conditions of the Prospectus and the related Application Forms.

Applicants who would like to have the Hong Kong Offer Shares alloted and issued in their own names should (i) complete and sign the WHITE Application Forms; or (ii) submit applications online through the designated website of the White Form eIPO Service Provider at www.eipo.com.hk under the White Form eIPO service. Applicants who would like to have the Hong Kong Offer Shares alloted and issued in the name of HKSCC Nominees and deposited directly into CCASS for credit to their designated CCASS Participants’ stock accounts or their CCASS Investor Participants’ stock accounts should complete and sign the YELLOW Application Forms.

Copies of the Prospectus, together with WHITE Application Forms, may be obtained during normal business hours from 9:00 a.m. on Tuesday, 21 January 2014 until 12:00 noon on Friday, 24 January 2014 from the following offices of the Hong Kong Underwriters:

Name Address ICBC International Securities Limited 37/F, ICBC Tower 3 Garden Road, Central Hong Kong Kingston Securities Limited Suite 2801, 28/F, One IFC 1 Harbour View Street Central Hong Kong CMB International Capital Limited Units 1803-4, 18th Floor Bank of America Tower 12 Harcourt Road Central Hong Kong China Rise Securities Company Room 1611, 16/F Limited West Wing, Shun Tak Centre 168-200 Connaught Road Central Hong Kong

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or any of the following branches of Industrial and Commercial Bank of China (Asia) Limited:

	Branch Name	Address
Hong Kong	Central Branch	1/F, 9 Queen’s Road	Central
Island		Central
	Causeway Bay Branch	Shop A, G/F, Jardine Center
		50 Jardine’s Bazaar
		Causeway Bay
	North Point Branch	G/F, 436-438 King’s Road
		North Point
Kowloon	Hung Hom Branch	Shop 2A
		G/F, Hung Hom Shopping Mall
		2-34E Tak Man Street
		Hung Hom
	Kwun Tong Branch	Shop 5 & 6
		1/F, Crocodile Center
		79 Hoi Yuen Road
		Kwun Tong
	Yaumatei Branch	542 Nathan Road
		Yaumatei
	Mongkok Branch	G/F., Belgian Bank Building
		721-725 Nathan Road
		Mongkok
	Mei Foo Branch	Shop N95A
		1/F, Mount Sterling Mall
		Mei Foo Sun Chuen
New	Tai Po Branch	Shop F, G/F, Mee Fat Building
Territories		No 34-38 Tai Wing Lane
		Tai Po
	Kwai Fong Branch	C63A-C66
		2/F, Kwai Chung Plaza
		Kwai Fong

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Copies of the Prospectus, together with the YELLOW Application Forms, may be obtained during normal business hours from 9:00 a.m. on Tuesday, 21 January 2014 until 12:00 noon on Friday, 24 January 2014 at the Depository Counter of HKSCC at 2nd Floor, Infinitus Plaza, 199 Des Voeux Road Central, Hong Kong or from your stockbroker, who may have such Application Forms and the Prospectus available.

The WHITE or YELLOW Application Form completed in accordance with the instructions printed thereon, together with a cheque or banker’s cashier order payable “ ” to ICBC (Asia) Nominee Limited — Redco Properties Public Offer attached should be deposited in the special collection boxes provided at any of the branches of the receiving banks referred to above on such dates and during such time as specified in the Application Forms.

Applicants may submit applications online to the White Form eIPO Service Provider through the designated website www.eipo.com.hk (24 hours daily, except on the last application day) from 9:00 a.m. on Tuesday, 21 January 2014 until 11:30 a.m. on Friday, 24 January 2014 or such later time as described in the section headed “How to Apply for Hong Kong Offer Shares — 9. Effect of Bad Weather on the Opening of the Application Lists”.

Please refer to the sections headed “Structure of the Global Offering” and “How to Apply for Hong Kong Offer Shares” of the Prospectus for details of the conditions and procedures of the Hong Kong Public Offer.

The Company expects to announce the Offer Price, an indication of the level of interest in the International Placing, the level of applications of the Hong Kong Public Offer and the basis of allotment on Wednesday, 29 January 2014 in the South China Morning Post (in English) and the Hong Kong Economic Times (in Chinese) and on the website of the Company at www.redco.cn and the website of the Stock Exchange at www.hkexnews.hk .

The results of allocations under the Hong Kong Public Offer (with successful applicants’ identification document numbers, where applicable) will be made available through a variety of channels from Wednesday, 29 January 2014 in the manner described in the section headed “How to Apply for Hong Kong Offer Shares — 10. Publication of Results” of the Prospectus.

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The Company will not issue temporary documents of title. No receipt will be issued for sum paid on application. Share certificates will only become valid at 8:00 a.m. on Thursday, 30 January 2014 provided that the Global Offering has become unconditional and the right of termination described in the section headed “Underwriting” in the Prospectus has not been exercised. Dealings in the Shares on the Stock Exchange is expected to commence at 9:00 a.m. on Thursday, 30 January 2014. The Shares will be traded in board lots of 2,000 each. The stock code of our Shares is 1622.

By Order of the Board Redco Properties Group Limited Huang Ruoqing Executive Director

Hong Kong, 21 January 2014

As at the date of this announcement, the executive Directors are Mr. Huang Ruoqing, Mr. Tang Chengyong, Mr. Hong Duxuan; and the independent non-executive Directors are Mr. Wong Yau Kar, David, Mr. Chau On Ta Yuen, Mr. Yip Tai Him and Mr. Chow Kwong Fai, Edward.

Please also refer to the published version of this announcement in the South China Morning Post.

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