Kaisa Prosperity : SUPPLEMENTAL ANNOUNCEMENT TO THE 2019 ANNUAL REPORT

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Kaisa Prosperity Holdings Limited

佳 兆 業 美 好 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2168)

SUPPLEMENTAL ANNOUNCEMENT

TO THE 2019 ANNUAL REPORT

Reference is made to the annual report for the year ended 31 December 2019 (the "2019 Annual Report") of Kaisa Prosperity Holdings Limited (the "Company") published on 27 April 2020. Unless otherwise stated, capitalised term used herein shall have the same meanings as those defined in 2019 Annual Report.

The Company would like to provide the following additional information in relation to:

1. USE OF PROCEEDS FROM THE LISTING OF THE SHARES OF THE COMPANY (THE "SHARES") IN DECEMBER 2018
   The Company raised Net Proceeds of approximately HK$262.1 million (equivalent to approximately RMB230.7 million) from the listing of the Shares in December 2018. During the year ended 31 December 2019, RMB96.9 million of the Net Proceeds was utilised as follows.

Intended use of
Net Proceeds as				Actual
stated in the prospectus		Actual	Unutilised	Unutilised
(the "Prospectus") of	Planned	use of Net	Net Proceeds	use of Net	Net Proceeds
the Company dated	use of Net	Proceeds	as at	Proceeds	as at
26 November 2018	Proceeds	during 2018	1 January 2019	during 2019	31 December 2019
	RMB in million	RMB in million	RMB in million	RMB in million	RMB in million
(1) Acquire or invest	115.3	-	115.3	36.6 used as	71.9
in other property				intended for the
management companies				acquisition of
				60% of Jiaxing
				Dashu
				6.8 used as
				intended for the
				acquisition of
				51% of Jiangsu
				Hengyuan
		- 1 -

Intended use of

Net Proceeds as

stated in the prospectus

Planned

Actual

Unutilised

Actual

Unutilised

(the "Prospectus") of

use of Net

Net Proceeds

use of Net

Net Proceeds

the Company dated

use of Net

Proceeds

as at

Proceeds

as at

26 November 2018

Proceeds

during 2018

1 January 2019

during 2019

31 December 2019

RMB in million

RMB in million

RMB in million

RMB in million

RMB in million

(2)

Acquire or invest in

46.1

-

46.1

-

46.1

companies engaged in

property management

related business

(3)

Promote the K Life

23.1

-

23.1

18.3 used as

4.8

mobile APP and the

intended for

community value-added

supporting the

products and services

upgrade of K Life

mobile APP

and promotion of

the community

value-added

services

(4)

Develop management

23.1

-

23.1

12.1 used as

11.0

digitalization service

intended for

specialization

the development

and upgrade of the

K Service

platform and

digital equipments

(5)

General working capital

23.1

-

23.1

23.1 used as

-

intended

230.7

-

230.7

96.9

133.8

It is expected that the unutilised Net Proceeds will be applied in a manner consistent with the disclosure in the Prospectus.

With respect to the Net Proceeds for the usage set out in items (3) and (4) above, it is expected that the Net Proceeds will be utilised on or before 31 December 2021. With respect to the Net Proceeds for the usage set out in items (1) and (2) above, it is expected that the Net Proceeds will be utilised before 31 December 2022. Given the impacts of the COVID-19 on the global economy and trade environment, the Company will continue to seek suitable targets for acquisitions and investments or cooperation, it will adopt a prudent and flexible approach for utilizing the Net Proceeds effectively and efficiently for the long term benefit and development of the Group.

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1. SHARE OPTIONS GRANTED DURING 2019
   During 2019, the Company granted 11,450,000 share options of the Company under the share option scheme approved by the shareholders of the Company in the annual general meeting held on 18 June 2019. All the share options were granted on 19 July 2019, the closing price of the Shares immediately before the date of grant was HK$15.36.
   The fair value under the binomial model for all the share options granted have been set out in Note 30 to the consolidated financial statements of the 2019 Annual Report. The 8,700,000 share options granted to the employees and 2,750,000 share options granted to the directors of the Company have a fair value under the binomial model of HK$62,564,000 and HK$22,241,000, respectively.

Except as disclosed above, all other information in the 2019 Annual Report remains unchanged.

By Order of the Board

Kaisa Prosperity Holdings Limited

Liao Chuanqiang

Chairman

Hong Kong, 23 July 2020

As at the date of this announcement, the executive Directors are Mr. Liao Chuanqiang, Ms. Guo Li, Mr. Wu Jianxin, Ms. Kwok Hiu Ting and Mr. Li Haiming; and the independent non- executive Directors are Mr. Liu Hongbai, Ms. Ma Xiumin and Mr. Chen Bin.

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