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.

Hong Kong Finance Group Limited

香 港 信 貸 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1273)

DISCLOSEABLE TRANSACTION PROVISION OF

FINANCIAL ASSISTANCE

PROVISION OF FINANCIAL ASSISTANCE

The Board is pleased to announce that on 21 September 2020, the Loan Agreement was entered into between HK Finance as the lender and Customer H as the Borrower. Pursuant to the Loan Agreement, HK Finance has agreed to grant the Loan to the Borrower for a term of 12 months.

LISTING RULES IMPLICATIONS

As the applicable percentage ratios under Rule 14.07 of the Listing Rules in respect of the Loan granted to the Borrower under the Loan Agreement exceed 5% but are less than 25%, the grant of the Loan constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules.

PROVISION OF FINANCIAL ASSISTANCE

The Board is pleased to announce that on 21 September 2020, the Loan Agreement was entered into between HK Finance as the lender and Customer H as the Borrower. Pursuant to the Loan Agreement, HK Finance has agreed to grant the Loan to the Borrower for a term of 12 months.

Summarised below are the principal terms of the Loan Agreement.

THE LOAN AGREEMENT

Date of the Loan

:

21 September 2020

Agreement

Lender

:

HK Finance

Borrower

:

Customer H

- 1 -

Principal

:

HK$30,000,000

Interest rate

: 1% per month (equivalent to 12% per annum)

Term

: 12 months commencing from the drawdown date

Security

:

A first legal charge/mortgage in respect of a residential

property with a car parking space located at Shouson Hill

Road, Hong Kong with valuation conducted by an independent

property valuer based on the valuation cut-off date on 13

August 2020

with an

aggregate

amount of

approximately

HK$60,000,000

Repayment

: the Borrower will repay the interest on a monthly basis with the

principal amount to be repaid at Loan maturity

Early redemption

:

the Borrower

will have

an option

at any time

to make early

repayment of the whole or part of the Loan after the drawdown date subject to the Borrower giving HK Finance not less than one calendar month's advance notice in writing

INFORMATION ON THE CREDIT RISK RELATING TO THE LOAN

The making of the Loan is collateralised. The collateral provided by the Borrower for the Loan is sufficient as the loan-to-value ratio of the mortgaged properties for the Loan to the Group is approximately 50.0% based on the value of the mortgaged properties for the Loan determined by an independent valuer.

The advance in respect of the Loan were also made on the basis of the Company's credit assessments made on (i) the collateral provided by Customer H, which are at the prime site in Hong Kong; (ii) the fact that Customer H is a repeated customer with satisfactory repayment history and records; and (iii) the relatively short term nature of the advance. After taking into account the factors as disclosed above in assessing the risks of the relevant advance, the Company considers that the risks involved in the advance to Customer H are low and manageable.

FUNDING OF THE LOAN

The Group will finance the Loan with the Company's general working capital.

INFORMATION ON THE BORROWER

Customer H is a company incorporated in British Virgin Islands engaging in the business of property investment holdings, and was approached by the Group through its network. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, the Borrower and its ultimate beneficial owner are an Independent Third Party and not connected with the Group.

- 2 -

INFORMATION ON THE GROUP AND THE LENDER

The Company is an investment holding company. The Group is principally engaged in money lending business in Hong Kong and mainly provides mortgage loans under the Money Lenders Ordinance. HK Finance, as the lender of the Loan, is an indirect wholly- owned subsidiary of the Company.

REASONS FOR ENTERING INTO THE LOAN AGREEMENT

Taking into account the principal business activities of the Group, the grant of the Loan to the Borrower is in the ordinary and usual course of business of the Group.

The terms of the Loan Agreement were negotiated on an arm's length basis between HK Finance and the Borrower. The Directors consider that the grant of the Loan is a financial assistance provided by the Group within the meaning of the Listing Rules. The Directors are of the view that the terms of the Loan Agreement were entered into on normal commercial terms based on the Group's credit policy. Taking into account the satisfactory financial background of the Borrower and that a stable revenue and cashflow stream from the interest income is expected, the Directors consider that the terms of the Loan Agreement are fair and reasonable and the entering into of the Loan Agreement is in the interests of the Company and its Shareholders as a whole.

LISTING RULES IMPLICATIONS

As the applicable percentage ratios under Rule 14.07 of the Listing Rules in respect of the Loan granted to the Borrower under Loan Agreement exceed 5% but are less than 25%, the grant of the Loan constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules.

It is required under Rule 14.58(2) of the Listing Rules to disclose the identities of the Borrower. Since (i) the Loan is not regarded as a material transaction of the Company as compared to the Company's overall financial position; (ii) the Company has practical difficulties in complying with the aforesaid disclosure requirement as the Borrower and its ultimate beneficial owner have confirmed to the Group that they will not consent to the disclosure of their identities in this announcement; (iii) the disclosure of the identities of the Borrower does not reflect its financial standing or repayment abilities and thus will serve little purpose in assisting the Shareholders to evaluate their creditworthiness and the risks and exposure of the Loan; and (iv) the Company has made alternative disclosures in respect of the Loan in this announcement, including but not limited to the details of the collateral and the loan-to-value ratio of the collateral in respect of the Loan, which would be much more meaningful for the Shareholders in assessing the risk and exposure of the Loan and the repayment abilities of the Borrower, the Company has applied to, and been granted by, the Stock Exchange for a waiver from strict compliance with Rule 14.58(2) of the Listing Rules.

- 3 -

DEFINITIONS

In this announcement, the following expressions have the following meanings:

''Board''

the board of Directors

''Borrower or Customer H''

a corporation incorporated in British Virgin Islands pursuant

to the Loan Agreement, and is an Independent Third Party

''Company''

Hong Kong Finance Group Limited, a company incorporated

in the Cayman Islands with limited liability, the shares of

which are listed on the Main Board of the Stock Exchange

''Director(s)''

the director(s) of the Company

''Group''

the Company and its subsidiaries

''HK$''

Hong Kong Dollars, the lawful currency of Hong Kong

''HK Finance''

Hong Kong Finance Company Limited, a company

incorporated in Hong Kong with limited liability with

money lenders licence registered under Money Lenders

Ordinance, and is an indirect wholly-owned subsidiary of

the Company

''Hong Kong''

the Hong Kong Special Administrative Region of the

People's Republic of China

''Independent Third

party(ies) who is/are independent of the Company and its

Party(ies)''

connected person(s) (as defined in the Listing Rules)

''Listing Rules''

the Rules Governing the Listing of Securities on the Stock

Exchange

''Loan''

the mortgage loan in the principal amount of

HK$30,000,000 provided by HK Finance to the Borrower

under the Loan Agreement

''Loan Agreement''

the loan agreement dated 21 September 2020 entered into

between HK Finance and the Borrower

''Money Lenders Ordinance'' the Money Lenders Ordinance (Chapter 163 of the laws of Hong Kong) as amended, supplemented or otherwise

modified from time to time

''Share(s)''

ordinary share(s) of HK$0.01 each in the share capital of

the Company

- 4 -

''Shareholder(s)''

holder(s) of the Share(s)

''Stock Exchange''

The Stock Exchange of Hong Kong Limited

On behalf of the Board

Hong Kong Finance Group Limited

Chan Kwong Yin William

Chairman

Hong Kong, 21 September 2020

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

Executive Directors:

Independent Non-executive Directors:

Mr. Chan Kwong Yin William (Chairman)

Mr. Chan Siu Wing Raymond

Mr. Chan Koung Nam

Mr. Chu Yat Pang Terry

Mr. Tse Pui To (Chief Executive Officer)

Mr. Cheung Kok Cheong

- 5 -

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Hong Kong Finance Group Ltd. published this content on 21 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 September 2020 09:24:00 UTC