Oi Wah Pawnshop Credit : DISCLOSEABLE TRANSACTION PROVISION OF FINANCIAL ASSISTANCE AND ADVANCE TO ENTITIES

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.

(Incorporated in the Cayman Islands with limited liability)

The Board is pleased to announce that on 12 July 2017, the Loan Agreement was entered into between Oi Wah PL as lender and Six Customers as borrower. Pursuant to the Loan Agreement, Oi Wah PL has agreed to grant the Loan to Six Customers for a term of 1 month.

As the applicable percentage ratios under Rule 14.07 of the Listing Rules in respect of the Loan granted to Six Customers 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.

In addition, as (i) Customer E, Customer F, Customer K and Customer L are associated with Customer A with the same beneficial owners; (ii) one of the ultimate beneficial owners of Customer A, Customer E, Customer F, Customer K and Customer L is an associate of Customer B and Customer C; (iii) Customer B is an associate of Customer C; and (iv) Customer C is the ultimate beneficial owner of Customer G and Customer I, the grant of the Loan and the Existing Loans requires aggregation under Rule 14.22 of the Listing Rules. Given the applicable percentage ratios in respect of the Loan and the Existing Loans granted to the Six Customers and the Existing Customers under Rule 14.07 of the Listing Rules exceed 5% but are less than 25%, the grant of the Loan and the Existing Loans still constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules.

As the aggregate amount of the Loan together with the Existing Loans granted to the Customers and their associates exceeds 8% under the assets ratio defined under Rule 14.07(1) of the Listing Rules, the grant of the Loan is subject to the general disclosure obligations under Rules 13.13 and

13.15 of the Listing Rules.

It is required under Rule 13.15 of the Listing Rules to disclose the identities of the Customers. As the Customers have confirmed to the Group that they will not consent to the disclosure of their identities in this announcement, the Company has applied to the Stock Exchange for a waiver from strict compliance with Rule 13.15 of the Listing Rules.

The Board is pleased to announce that on 12 July 2017, the Loan Agreement was entered into between Oi Wah PL as lender and Six Customers as borrower. Pursuant to the Loan Agreement, Oi Wah PL has agreed to grant the Loan to Six Customers for a term of 1 month.

Summarised below are the principal terms of the Loan Agreement.

Date of agreement : 12 July 2017 Lender : Oi Wah PL

Borrower : Six Customers

Principal : Principal A: HK$85,500,000.00 Principal B: HK$36,000,000.00

Interest rate for : P + 15.75% per annum, where P represented the prime rate of 5.25% Principal A per annum offered by Wing Lung Bank Limited as of the date of the

Loan Agreement

Interest rate for : P + 14.75% per annum, where P represented the prime rate of 5.25% Principal B per annum offered by Wing Lung Bank Limited as of the date of the

Loan Agreement

Term : 1 month commencing from the Drawdown Date

Security : A second legal charge/mortgage in respect of fourteen commercial properties and nine industrial properties located in Tsim Sha Tsui, Shatin, Kwun Tong, Wan Chai, Tai Po, Chai Wan and Kwun Tong with valuation conducted by two independent property valuers on 6 July 2017 with an aggregate amount of approximately HK$890,500,000.00

Repayment : Six Customers shall repay the interests with the principal amount at loan maturity

Interest : Interest is calculated on daily basis with the maximum amount of HK$2,096,250.00

Early redemption : Handling fees plus interest in the sum of HK$1,048,125.00 in total will be charged if the Loan is fully repaid by Six Customers within half a month

Pursuant to the Loan Agreement, the Loan is guaranteed by three individuals who are Independent Third Parties. All mortgaged properties are insured against fire risks with an insurance company approved by Oi Wah PL.

The making of the Loan is collaterised. The collaterals provided by Six Customers for the Loan are sufficient as the aggregate loan-to-value ratio of the twenty-three mortgaged properties is approximately 69% (loan-to-value ratio of first mortgage: approximately 41%, loan-to-value ratio as a subordinated mortgage to another independent mortgagee: approximately 14%, loan-to-value ratio of the Loan as a subordinated mortgage to the Group: approximately 14%) based on the value of the mortgaged properties for the Loan as determined by two independent property valuers.

The advance in respect of the Loan was also made on the basis of the Company's credit assessments made on the financial strength and repayment ability of Six Customers, the collaterals provided by Six Customers, which are at the prime sites in Hong Kong, and 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 Six Customers are relatively low.

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

Customer A is a company incorporated in Hong Kong principally engaged in the business of property investment. Customer A is a repeated customer of the Group with no default record. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, Customer A and its ultimate beneficial owners are Independent Third Parties and not connected with the Group.

Customer B is a merchant and our repeated customer with no default record in our Group. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, Customer B is an Independent Third Party and not connected with the Group.

Customer C is a merchant and our repeated customer with no default record in our Group. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, Customer C is an Independent Third Party and not connected with the Group.

Customer E is a company incorporated in Hong Kong principally engaged in the business of property investment. Customer E is a repeated customer of the Group with no default record. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, Customer E and its ultimate beneficial owners are Independent Third Parties and not connected with the Group.

Customer F is a company incorporated in Hong Kong principally engaged in the business of property investment. Customer F is a repeated customer of the Group with no default record. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, Customer F and its ultimate beneficial owners are Independent Third Parties and not connected with the Group.

Customer G is a company incorporated in Hong Kong principally engaged in the business of property investment. Customer G is a repeated customer of the Group with no default record. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, Customer G and its ultimate beneficial owners are Independent Third Parties and not connected with the Group.

Customer I is a company incorporated in Hong Kong principally engaged in the business of property investment. Customer I is a repeated customer of the Group with no default record. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiries, Customer I and its ultimate beneficial owner is Independent Third Party and not connected with the Group.