INVESTMENT IN THE ENTRUSTED FUND

INVESTMENT IN THE ENTRUSTED FUND

The Board is pleased to announce that on 18 November 2016, the Beneficiary entered into the Entrusted Fund Agreement with the Trustee pursuant to which the Beneficiary has agreed, subject to the terms and conditions contained therein, to entrust the Entrusted Amount of RMB39,200,000 (equivalent to HK$43,904,000) to the Trustee for a term of six months, which carries an expected rate of net return of 26.5% per annum. The permitted use of the Entrusted Fund is for the provision of the Loan to the Borrower. The Trustee will enter into a separate loan agreement with the Borrower for the provision of the Loan with a principal amount of RMB39,200,000 (equivalent to HK$43,904,000) and a term of six months, and which is secured by the Securities. IMPLICATIONS UNDER THE LISTING RULES The investment in the Entrusted Fund constitutes a transaction within the meaning of Chapter 14 of the Listing Rules. As one or more of the applicable percentage ratios (as calculated under Rule 14.07 of the Listing Rules) in respect of the investment in the Entrusted Fund is more than 5% but less than 25%, such investment constitutes a discloseable transaction of the Company and is subject to the reporting and announcement requirements set out in Chapter 14 of the Listing Rules.