Coastal Greenland : SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO THE ANNUAL REPORT FOR THE YEARS ENDED 31 MARCH 2019 AND 2020

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COASTAL GREENLAND LIMITED

沿海綠色家園有限公司*

(Incorporated in Bermuda with limited liability)

(Stock Code: 1124)

SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO THE ANNUAL REPORT FOR THE YEARS ENDED 31 MARCH 2019 AND 2020

Reference is made to the annual report of Coastal Greenland Limited (the "Company", together with its subsidiaries, the "Group") for the year ended 31 March 2019 (the "2019 Annual Report") and the annual report of the Company for the year ended 31 March 2020 (the "2020 Annual Report"). Unless otherwise defined, capitalised terms used herein shall have the same meaning as those set out in the 2019 Annual Report and 2020 Annual Report.

In addition to the information provided in the 2019 Annual Report and 2020 Annual Report, the Board would like to provide further information and breakdown in relation to the other expenses of the Group for the year ended 31 March 2020 (together with the comparative figures of 2019) as follows:

• For identification purpose only

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	2020	2019
	HK$'000		HK$'000
Compensation for cancellation of a disposal agreement#	-	350,631
Compensation in respect of a land development project disposed of@	72,509		-
Compensation in respect of delay in the handover of completed
properties to purchasers	427	12,205
Fines and late penalty for tax charges, etc	28	16,418
Impairment loss recognised on investments in joint ventures	-	41,958
Impairment loss recognised on prepayments, deposits and other
receivables	-	1,440
Impairment loss recognised on properties under development	134,523	105,889
Impairment loss recognised on trade receivables included
in "assets classified as held for sale"	-	24,942
Indemnity against a legal case	21,742	22,479
Loss on disposal of financial assets at FVOCI	-	38,830
Loss on write-off of assets and liabilities of de-registration
of subsidiaries	20,988		-
Write-off of amount due from an associate upon disposal	-	13,305
Write-off of prepayments, deposits and other receivables	1,210	18,263
Others	1,947	4,633
	253,374	650,993

• The amount represented compensation for cancellation of a disposal agreement in relation to certain land disposal to an independent third party so as to facilitate the proceeding of the transaction of disposal of Century East Group Limited during last year.

• The amount represented compensation for a land development project disposed of in the previous years in relation to the delay in the construction progress which give rise to an additional cost to the purchaser.

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The Board confirmed that the supplementary information provided in this announcement does not affect other information contained in the 2019 Annual Report and the 2020 Annual Report. Save as disclosed above, the contents of the 2019 Annual Report and 2020 Annual Report remained unchanged.

By order of the Board

Coastal Greenland Limited

Jiang Ming

Chairman

Hong Kong, 14 August 2020

As at the date of this announcement, the Board comprises Mr. Jiang Ming, Mr. Xia Xianglong, Dr. Li Ting and Mr. Lin Chen Hsin as executive Directors, Mr. Zhu Guoqiang and Mr. Qiu Guizhong as non-executive Directors and Mr. Wong Kai Cheong, Mr. Yang Jiangang and Mr. Huang Xihua as independent non-executive Directors.

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