Crown International : PROPOSED ISSUE OF BONDS

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.

CROWN INTERNATIONAL CORPORATION LIMITED

皇冠環球集團有限公司

(Incorporated in Hong Kong with limited liability)

(Stock code: 727)

PROPOSED ISSUE OF BONDS

This announcement is made by the Company pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

PROPOSED ISSUE OF BONDS

The Board announces that the Company proposes to issue the Bonds targeting at subscribers which are Independent Third Parties. None of the Bonds will be offered to the public in Hong Kong or to connected persons of the Company. When a subscriber is identified, the Company will enter into a subscription agreement with the subscriber in respect of the Bond(s).

As at the date of this announcement, the terms and conditions of the Bonds have yet to be finalised. The terms and conditions of the Bonds will be determined by the Board

subject to market conditions and subscribers' interests. The indicative principal terms

of the Bonds are set out below and are subject to change according to the market conditions.

The Bonds are expected to be issued in tranches within three months and in an aggregate principal amount of up to US$200,000,000 with a term of one to three years at a coupon rate in accordance with the market conditions.

The Bonds will constitute direct, unconditional, unsubordinated and unsecured obligations of the Company which will rank equally and without any preference amongst themselves and at all times rank at least pari passu with all other present and future direct, unconditional, unsubordinated and unsecured obligations of the Company. No listing of the Bonds will be sought on the Stock Exchange or any other stock exchanges.

REASONS FOR THE ISSUE OF BONDS AND USE OF PROCEEDS

The Group is principally engaged in the business of property investment, property development, hotel operations and financial consultancy services in the People's Republic of China.

As disclosed in the interim report of the Company for the six months ended 30 September 2019, the preparation of a new business segment, the comprehensive healthcare business, was finished in the first half of the year. The comprehensive healthcare business includes provision of services to healthcare business operators, including preliminary planning, research, establishment, staff training and post- establishment operation and management. The Group has succeeded in attracting professional teams with extensive experience in these sectors and has comprehensive project resources and customer network. The Group is even better equipped and readily prepared to commence business operations in the second half of the year, which in turn would contribute to the revenue and earnings for the Group. Furthermore, the Group is proactively identifying potential property projects to modify them into high-end healthcare projects through various methods such as acquisition of property projects or cooperation with property owners. It is also possible to develop healthcare projects through land development by ourselves. When integrated into the capital operations with insurers and financial institutions, the development of the comprehensive healthcare business would gain more strengths. As the domestic aging population problem is worsening, the Group is of the view that the Chinese government is also willing to actively support the relevant industries. The concept of comprehensive healthcare will become an important goal of the Group's future development. The net proceeds from the proposed issue of the Bonds are intended to be used for acquisition, modification and development of such potential healthcare projects.

The Board is of the view that the proposed issue of the Bonds is in the interest of the Company and its Shareholders as a whole.

As no binding agreement in relation to the proposed issue of the Bonds has been entered into as at the date of this announcement, the proposed issue of the Bonds may or may not materialise. Investors and shareholders of the Company are urged to exercise caution when dealing in the securities of the Company. Further announcement(s) in respect of the issue of the Bonds will be made by the Company as and when appropriate.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following terms shall have the following meanings:

"Board"	the board of Directors
"Bond(s)"	the bonds to be issued by the Company in an aggregate
	principal amount of up to US$200,000,000
"Company"	Crown International Corporation Limited, a company
	incorporated in Hong Kong with limited liability whose
	issued Shares are listed on the Main Board of the Stock
	Exchange (Stock Code: 727)
"connected person(s)"	has the meanings ascribed to it under the Listing Rules
"Director(s)"	the director(s) of the Company
"Group"	the Company and its subsidiaries
"Hong Kong"	the Hong Kong Special Administrative Region of the
	People's Republic of China
"Independent Third	third party(ies) which is(are) independent of and not
Party(ies)"	connected with the Company and its connected persons
	and not otherwise a connected person of the Company
"Listing Rules"	the Rules Governing the Listing of Securities on the
	Stock Exchange
"Stock Exchange"	The Stock Exchange of Hong Kong Limited
"US$"	United States dollars, the lawful currency of the United
	States of America

By Order of the Board

Crown International Corporation Limited

HUNG Man

Chairman

Hong Kong, 20 December 2019

As at the date of this announcement, the Board comprises four executive Directors, namely Ms. HUNG Man, Mr. LI Yong Jun, Mr. LIU Hong Shen and Mr. MENG Jin Long; and three independent non-executive Directors, namely Mr. LONG Tao, Mr. REN Guo Hua, and Mr. CHEN Fang