About STAR GROUP ASIA Company

We are property developers, mainly engaged in the development of industrial buildings in Hong Kong for sale or rent. Our business operates under two main business segments: — Property development: developing land for industrial development, rebuilding or upgrading (through alterations and additions) an existing industrial building to increase its capital value and realize the increased capital value associated with the sale of the property; and — Property investment: Investing in properties with good capital appreciation potential and rental value, and leasing such reserved properties to generate significant recurring rental income. With the expertise and experience of the Group's management, we have completed a new industrial building (Skyline Center) since we established our business in 2010 and have successfully increased its capital value (which was completed in August 2014), and we have also begun construction of another new industrial building (i.e. Star Center) in June 2013, and we expect the building to be completed in the fourth quarter of 2016. Whereas (a) we focus on industrial and commercial properties, the operation process of property development projects is similar; by implementing the Skyline Center and Star Center property projects, we have accumulated experience in identifying and acquiring development sites, obtaining pre-construction approvals, project planning and design (including selecting and appointing construction and engineering companies), project execution and supervision (including appointing contractors to undertake foundation and superstructure construction projects), and pre-sale and marketing; (b) our directors and senior management have expertise and experience relevant to our business; (c) we have established customers and suppliers Network, we believe we have the necessary qualifications and will be able to further develop the Group's business by carrying out future property development projects. Our directors believe that Skyline Center and Star Center will help us establish a foothold for property development in Hong Kong, particularly in the private industrial market. Skyline Center and Star Center highlight our strengths in quality and design, making us stand out as a property developer with a vision and expertise in the private industrial market. According to data from the JLL report, as far as the private industrial market is concerned, the Group ranks fifth in terms of the floor area of completed properties since 2011. All properties held by the Group at the last practical date were used for industrial purposes. We intend to convert Yue Fung Property and rebuild Chai Wan Kok Property as a commercial property focusing on studio office buildings. Our goal is to commence the property upgrade project of Yue Fung Property and the redevelopment of the property in Chai Wan Kok in the fourth quarter and the third quarter of 2016, respectively. The Group's revenue for the three years ended December 31, 2015 was zero, approximately HK$611.8 million and approximately HK$78.7 million, respectively. After completing the construction of our first completed project, the Skyline Centre, in August 2014, we delivered the Skyline Center's sold factory units in the third and fourth quarters of 2014, and the proceeds relating to the sale of such sold factory units were confirmed in accordance with relevant accounting standards after delivery. As a result, the Group did not record any revenue for the year ended December 31, 2013. During the track record period, our profit mainly came from the sale of factory units at Skyline Center. For the three years ended December 31, 2015, the Group recorded net profit of approximately HK$0.2 million, approximately HK$196.1 million and approximately HK$37.1 million respectively. In the same period, we recorded fair value income from investment properties of approximately HK$5.1 million, approximately HK$12.0 million and approximately HK$16.4 million respectively. Excluding the relevant fair value gains, the Group will record an adjusted net loss of approximately HK$4.9 million for the year ended December 31, 2013, and recorded adjusted net profit of approximately HK$184.1 million and approximately HK$20.7 million for the two years ended December 31, 2015, respectively, so it will still be able to comply with the profit requirements under section 8.05 (1) (a) of the Listing Rules. Since we set up our business in 2010 and until our track record, we have completed only one property development project (i.e. Skyline Center). In this regard, during the track record period, we mainly generated profit from the sale of factory units at the Skyline Center. Looking ahead, we expect to generate significant revenue from the sale of Star Center units, and the sold units are expected to complete construction and delivery from the last quarter of 2016 to the first quarter of 2017, and since we expect our profit contribution from rent (as a source of recurring revenue) to increase due to the completion of the Yufeng Project and the Chai Wan Kok Project, the Group will obtain a more stable revenue stream.