GR Properties : PROFIT WARNING

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.

GR PROPERTIES LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code: 108)

PROFIT WARNING

This announcement is made by GR Properties Limited (the "Company") and its subsidiaries (collectively the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under XIVA of the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong).

The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2020 and other information currently available to the Board, the Group is expected to record a loss attributable to Shareholders of not less than HK$6 million for the six months ended 30 June 2020, as compared to the loss attributable to Shareholders of approximately HK$3 million in the corresponding period in 2019. The increase in loss is mainly attributable to increase in finance costs for the period as a result of additional interest expense incurred on a quasi-loan equity contributed by a joint venture partner of a subsidiary, which was acquired in the second half year of 2019. The effect of the increase in finance costs for the period was partly offset by a remeasurement gain recognised upon transfer of certain properties held for sale to investment properties in the People's Republic of China during the six months ended 30 June 2020.

The information contained in this announcement is only a preliminary assessment made by the management of the Company based on the unaudited consolidated management accounts of the Group and the information currently available to the Board, and such information has not been reviewed by the auditors or audit committee of the Company. The Company is still in the process of preparing and finalizing the results of the Group for the six months ended 30 June 2020, which are subject to further adjustments. Shareholders and potential investors are advised to read carefully the interim results announcement of the Group for the six months ended 30 June 2020 which is expected to be published in late August 2020.

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Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

GR Properties Limited

Wei Chunxian

Chairman

Hong Kong, 25 August 2020

As at the date of this announcement, the executive Directors are Mr. Wei Chunxian, Mr. Sun Zhongmin, Ms. Liu Shuhua, Mr. Guo Jingsheng, Ms. Huang Fei and Ms. Li Bing; and the independent non-executive Directors are Mr. Tung Woon Cheung Eric, Ms. To Tsz Wan Vivien and Mr. Leung Louis Ho Ming.

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