Clarification Statement

2019.08.16

Clarification Statement

Hong Kong Cheung Kei Center is wholly-owned by the Cheung Kei Group ("the Group"). It is a Super Grade A office tower, and it is where the Group's headquarter in Hong Kong is located. Over the years, the Group has strived to maintain an excellent relationship with each of its tenants by delivering services of the highest quality and standard and exercising prudence and due diligence in tenant selection.

Recently, Mount Kelly International Limited ("Mount Kelly") has commenced proceedings in the High Court, requesting for a declaration that its tenancy at the Hong Kong Cheung Kei Center has been void. As disclosed in publicly available information, Mount Kelly has failed to obtain the requisite permissions to operate an educational institute at the relevant premises. It is plain and obvious that a claim arising for that reason is unreasonable and unfound.

The Group hereby reiterates that Mount Kelly's claim is absolutely groundless. In view of the seriousness of its claim and in order to safeguard the goodwill of the Group, the Group has promptly referred the matter to a team of lawyers and will pursue all courses of action to safeguard the Group's reputation and rights. The Group will also pursue all outstanding rental and other payments owed by Mount Kelly as a result of its long-term default. All of the rights and remedies of the Group is reserved.

The Group will make further announcements in respect of the said matter if and when appropriate.

Cheung Kei Group

Hong Kong, 15 August, 2019