SRE : INSIDE INFORMATION AND DISCLOSURE PURSUANT TO RULE 13.19 OF THE LISTING RULES

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.

SRE GROUP LIMITED

上 置 集 團 有 限 公 司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 1207)

INSIDE INFORMATION AND

DISCLOSURE PURSUANT TO RULE 13.19 OF THE LISTING RULES

This announcement is made by SRE Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.19 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (the "SFO"), Chapter 571 of the Laws of Hong Kong.

Reference is made to the announcement (the "Announcement") of the Company dated 20 February 2020 in relation to, inter alia, the Arrest of Mr. Peng and the Detention of Mr. Chen. Unless otherwise defined herein, capitalized terms used in this announcement shall have the same meanings as defined in the Announcement.

TRIGGERING EVENTS

Pursuant to Rule 13.19 of the Listing Rules, the Company hereby announces that the Arrest and/ or the Detention would or may technically constitute the occurrence of certain triggering events (the "Triggering Events") under certain loan agreements of certain bank loans (the "Relevant Loans") borrowed or guaranteed by the Group in the aggregate outstanding principal amount of approximately RMB4,587 million. As a result, the respective lenders (the "Lenders") of the Relevant Loans have the rights to demand immediate repayment of the outstanding principal, accrued interests and all other amounts accrued or outstanding under the Relevant Loans.

In respect of the above, the Group has been proactively communicating with the Lenders with a view to obtaining waivers from the Lenders. Whilst the Group has not yet obtained formal waivers from the Lenders as at the date of this announcement, based on communications between the Group and the Lenders, the Company is given to understand that the Lenders' decision to exercise their rights to demand immediate repayment or not is mainly based on assessment of the operation and financial conditions and the ability to make timely repayments of the respective borrowers of the Relevant Loans. As at the date of this announcement, the business, operations, financial condition and cash position of the Group remain normal and stable, and the Group has sufficient financial resources to support the normal

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repayments of the Relevant Loans. The Company would like to emphasize that as of the date of this announcement, none of the Lenders has expressed an intention to demand immediate repayment of any of the Relevant Loans.

At the same time, the Group will also actively consider other suitable director candidates in replacement of Mr. Peng and Mr. Chen, and also consider appropriate adjustments to the composition of the board of directors.

As at the date of this announcement, save as disclosed above, the Company is not aware of any information which must be announced to avoid a false market in the Company's securities or of any inside information required to be disclosed pursuant to the Inside Information Provisions under Part XIVA of the SFO. The Company will disclose further development of this matter by way of announcement(s) as and when appropriate.

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

in the shares of the Company.

By Order of the Board

SRE Group Limited

Zhu Qiang

Executive Director

Hong Kong, 24 February 2020

As at the date of this announcement, the board of directors of the Company comprises seven executive directors, namely Mr. Peng Xinkuang, Mr. Chen Donghui, Mr. Zhu Qiang, Ms. Qin Wenying, Mr. Jiang Qi, Ms. Jiang Chuming and Mr. Zong Shihua; and four independent non-executive directors, namely Mr. Zhuo Fumin, Mr. Chan, Charles Sheung Wai, Mr. Ma Lishan and Mr. Han Gensheng.

*  For identification purpose only

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