Tian Shan Development : SUPPLEMENTAL ANNOUNCEMENT ON THE ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2019

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Tian Shan Development (Holding) Limited

天山發展（控股）有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 2118)

SUPPLEMENTAL ANNOUNCEMENT

ON THE ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2019

Reference is made to the annual report of Tian Shan Development (Holding) Limited (the "Company", together with its subsidiaries, the "Group") for the year ended 31 December 2019 published on 15 May 2020 (the "2019 Annual Report"). Unless otherwise stated, capitalised terms used here in shall bear the same meanings as defined in the 2019 Annual Report.

As disclosed in the 2019 Annual Report, other income under other net income of the Group for the year ended 31 December 2019 amounted to approximately HK$34.0 million (as disclosed in note 5 to the financial statements of the 2019 Annual Report). The Board would like to provide further information on the breakdown of the other income of the Group for the year ended 31 December

2019 as follows:

	For the year ended
	31 December
	2019		2018
	RMB'000	RMB'000
Income from factoring service	8,385		10,894
Compensation income	6,365	5,548
Property management income	5,948	5,251
Utility income	3,145	5,345
Input value-added tax surplus deduction	2,042	-
Others	8,154	6,486
Total	34,039		33,524

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The above additional information does not affect other information contained in the 2019 Annual Report and, save as disclosed in this announcement, the remaining contents of the 2019 Annual Report remain unchanged.

By Order of the Board

Tian Shan Development (Holding) Limited

Wu Zhen Shan

Chairman

Hong Kong, 13 August 2020

As at the date of this announcement, the Board comprises three executive Directors, Mr. Wu Zhen Shan, Mr. Wu Zhen Ling and Mr. Zhang Zhen Hai; and three independent non-executive Directors, Mr. Tian Chong Hou, Mr. Wang Ping and Mr. Cheung Ying Kwan.

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