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Offer Price at Between HK$7.0 to HK$8.13 per Share to Raise Gross Proceeds up to HK$3.117 billion and to Introduce a Number of Solid Cornerstone Investors

HONG KONG,
CHINA – Media OutReach – 19 October 2020 – KWG Living Group Holdings Limited (“KWG Living” or
the Company”, together with its subsidiaries, the “Group”, HKSE stock code: 3913), a comprehensive property management service provider in China
today announces the details of the global offering
(the “Global Offering”) and the proposed listing of its shares (the “Shares”)
on the Main Board of The Stock Exchange of Hong Kong Limited (the “HKSE”).

The Global Offering is of a
total of 383,384,000 Shares (the “Offer Shares”), comprising an international
placing of 345,044,000 Shares, including 70,623,355 Reserved Shares under the
Preferential Offering (Could be reallocated and Depends on whether the
over-allotment option is exercised or not) (the International Placing) and a
Hong Kong public offering of 38,340,000 Shares (Could be reallocated) (the
“Hong Kong Public Offering”), representing approximately 90% and 10% of the
total number of the Offer Shares respectively. The indicative offer price (the
“Offer Price”) range is HK$7.0 to HK$8.13 per Share.

ABCI Capital Limited and
Huatai Financial Holdings (Hong Kong) Limited are the Joint Sponsors of Global Offering.
ABCI Capital Limited, Huatai Financial Holdings (Hong Kong) Limited, China
International Capital Corporation Hong Kong Securities Limited, Credit Suisse
(Hong Kong) Limited and Morgan Stanley Asia Limited are the Joint Global
Coordinators of Global Offering. ABCI Capital Limited, Huatai Financial
Holdings (Hong Kong) Limited, China International Capital Corporation Hong Kong
Securities Limited, Credit Suisse (Hong Kong) Limited, Morgan Stanley Asia
Limited (in relation to the Hong Kong Public Offering only), Morgan Stanley
& Co. International plc (in relation to the International Offering only),
BOCI Asia Limited, CGS-CIMB Securities (Hong Kong) Limited, CLSA Limited, CRIC
Securities Company Limited, HeungKong Securities Limited are the Joint
Bookrunners of Global Offering. ABCI Securities Limited, Huatai Financial
Holdings (Hong Kong) Limited, China International Capital Corporation Hong Kong
Securities Limited, Credit Suisse (Hong Kong) Limited, Morgan Stanley Asia
Limited (in relation to the Hong Kong Public Offering only), Morgan Stanley
& Co. International plc (in relation to the International Offering only),
BOCI Asia Limited, CGS-CIMB Securities (Hong Kong) Limited, CLSA Limited, CRIC
Securities Company Limited and HeungKong Securities Limited are the Joint Lead
Managers of Global Offering.

The Group introduced a number
of solid cornerstone investors (“Cornerstone Investor”), to subscribe for a
certain number of Offer Shares with an aggregate amount of US$120 million. The
cornerstone investors agreed that their shares purchased pursuant to their
respective cornerstone investors agreement, are subject to the six months
Lock-up period following the Listing Date. The cornerstone investors include Gaoling
Fund, L.P and YHG Investment, L.P.(“Hillhouse Funds”), Orchid China Master Fund
Limited and LMA SPC, Harvest Global Capital Investments Limited, Snow Lake China
Master Fund, Ltd., The Valliance Fund , China Lesso Group Holdings Limited, Oscar
and Partners Capital Limited, and Aspex Master Fund, of which Hillhouse Funds
subscribed for approximately US$50 million, and other cornerstone investors
each subscribed for US$10 million.

The net proceeds of the Global
Offering, after deducting the underwriting commissions and other estimated
expenses in connection with the Global Offering, are estimated to be
approximately HK$2,755.5 million, assuming an Offer Price of HK$7.56 per Offer
Share, being the midpoint of the proposed Offer Price range, and assuming the
Over-allotment Option is not exercised. These proceeds are intended to be
applied as follows:

• approximately 60% will be used to pursue strategic
  acquisitions and investment opportunities to further develop strategic
  alliances, expand business scale and increase market shares in residential
  property management service market and commercial and other non-residential property
  management and operational service market;
• approximately 25% will be used to upgrade the
  intelligent service systems in order to further enhance operational efficiency
  and service quality;
• approximately 10% will be used to further diversify
  value-added services;
• approximately 5% will be used for general business
  purpose and working capital.

KWG Living Group Holdings
Limited is a comprehensive property management service provider in China, carrying
the company philosophy of ”Careful Housekeeper”. KWG Living provide comprehensive
property management services for both residential properties and commercial
properties. Residential property management service segment comprises (i)
pre-sale management services; (ii) property management services; and (iii)
community value-added services, including (a) property agency services to
property developers and property owners; (b) home-living services to property
owners and residents; and (c) common area value-added services. The commercial
property management and operational service segment comprises (i)pre-sale management
services; (ii) commercial property management services; (iii) commercial
operational services; and (iv) other value-added services, primarily including
common area value-added services.

KWG Living focus on the development
in the Greater Bay Area and the track record had grown rapidly. According to
CIA, the Group was ranked 18th and 17th among the Top 100 Property Management
Companies in China (中國物業服務百強企業) in terms of overall strength in 2019 and 2020
respectively. As of April 30, 2020, the total GFA under management of
residential properties and commercial properties managed by the Group was 18.9
million sq.m. and 3.3 million sq.m respectively. These residential properties were
located in 38 cities or autonomous country in China, including major cities
such as Beijing, Shanghai, Chengdu and Suzhou. KWG Living has further
penetrated the Great Bay Area. According to the industry consultant of the
Company, Jones Lang LaSalle Corporate Appraisal and Advisory
Limited (“JLL”), among the property management companies with commercial
operational services, we were ranked seventh in China and fifth in the Greater
Bay Area in terms of total GFA under management. In the Greater Bay Area, as of
April 30, 2020, the group has a contracted construction area of 14.2 million sq.m,
accounting for 41.2% of the total contracted construction area. The Group’s
revenue increased from RMB 463 million in 2017 to RMB 1.125 billion in 2019, a
compound annual growth rate of 55.8%, and net profit increased from RMB 44.15
million in 2017 to RMB 185 million in 2019 , The compound annual growth rate is
104.8%.

KWG Living has won well-recognized reputation and premium brought for its high
quality service. The Group has won different awards, including the top 10
leading companies in terms of service quality among the 2020 Top 100 Property
Management Companies in China
(2020中國物業服務百強服務質量領先企業十強) by CIA, together with KWG Group, were awarded 2020 Top 100 Commercial
Property Companies in China (2020中國商業地產百強企業) (ranked No. 8) in 2020 by CIA and a 2019 high growth commercial property enterprise (2019年度高成長商業地產企業) by linkshop.com (聯商網) etc.
The Group believes that well-recognized market reputation will enhance the
customer stickiness, also help to secure high-profile property management
projects and enable to further grow business. In addition, customers are
generally willing to pay a premium for quality services. According to the
ranking of CIA, in 2019, among the top 10 leading property management companies
in the Greater Bay Area, the group was ranked first in terms of revenue per
sq.m. among the top 10 leading property management companies in the Greater Bay
Area.

KWG Living commercial property
management and operation business is advancing steadily. Meanwhile, the Group could
also provide diversified services to cater to the needs of different customers.
The Group have been provided commercial property management and operational
services since 2006. The commercial property management and operational
business targets mid- to high-end commercial properties, including office
buildings and shopping malls. According to JLL, given the different customer
base, management and operation of commercial properties typically yield higher
service fees and profit margin in general, as compared to residential
properties. Therefore, the Group has placed an emphasis on commercial property
management and operational business, with an expectation that it will enhance
financial performance and contribute to profitability of the Group. In addition to providing diversified property management services to
residential and commercial properties, the Group also provides a series of
value-added services, including second-hand property agency services for
residential properties, household cleaning, maintenance, remodeled apartment
design for elderly residents, and commercial property renovation, facility
maintenance and leasing advertising space. The Group’s business portfolio has
created a diversified source of income, which helps improve financial
performance and increase customer loyalty.

The good development of KWG
Living is benefited from the support of KWG group and the excellent experienced
management. KWG Living was spun-off from KWG Group. KWG Group is a large-scale
property developer which has further penetrated the Greater Bay Area and
Yangtze River Delta Area with a strong focus on first-tier, new first-tier and
second-tier cities. The land reserves of KWG Group and its continuous
expansion will bring about steady support to the Group’s business. The
extensive experience and strong management capabilities are key to the success
of the Group. KWG Group not only has capable workforce, the Group also provide
the employees with comprehensive trainings and established a talent pool
management system to cultivate the employees.

Moreover, the Group utilized
advanced technology to improve operational efficiency and customer experience. The
Group has been utilizing  “CoKWG” app to
provide residents with services including entry control, repair and maintenance
requirements. The Group has also installed various facilities in residential
properties under management for developing a smart community, which can save
labor cost while enhancing customer experience.

The Chairman, Non-executive
Director and a Controlling Shareholder MR. Kong Jianmin said, “KWG Living has already built a strong
foothold in the Greater Bay Area and will consolidate its leading position
there. Having set its sights on building up its nationwide business presence,
the Group will also seek to expand both its business and market shares in
Yangtze River Delta, Midwest China and, Hainan and Bohai Economic Rim. KWG
Living and KWG Group will also complement each other for mutual benefits based
on their good and stable relationship. After it is spun off through a separate
listing, KWG Living will have an independent platform for raising financing
directly. The move will also be conducive to the expansion of its investor base
and the improvement of the efficiency of its business operation and financial
management.”

Executive Director, the Chief
Executive officer and a Controlling Shareholder MR. Kong Jiannan said, “Residential property
development as an industry has been growing on the back of China’s urbanization
in the past several decades. This has generated a huge demand for residential
property management. Specifically, the Greater Bay Area’s market for
residential property management is booming. As a comprehensive property
management service provider in China, KWG Living will continue to grow and
further diversify into value-added services through acquisitions and strategic
investments. It will also upgrade its intelligent systems to further enhance
both the operational efficiency and customer experience. In the future, KWG
Living expects its revenue to continue to grow on the back of the increasing
gross floor area of properties under its management, its expanding geographical
market coverage and its further diversified service portfolio.”

The Hong Kong Public Offering commenced at 9:00
am on Monday, 19^th October 2020, and is expected to close at 12:00 noon on Thursday, 22^nd October
2020. The results of allocation in the Hong Kong Public Offering and the
Preferential Offering and the final Offer Price are expected to be announced on
Thursday, 29^th October 2020. Dealings in the Shares on the Main
Board of HKSE are expected to commence on Friday, 30^th October 2020,
with 3913 as the stock code.

White Application Forms and
prospectuses can be obtained from ABCI Securities Limited, Huatai Financial
Holdings (Hong Kong) Limited, China International Capital Corporation Hong Kong
Securities Limited, Credit Suisse (Hong Kong) Limited, Morgan Stanley Asia
Limited, BOCI Asia Limited, CGS-CIMB Securities (Hong Kong) Limited, CLSA
Limited, CRIC Securities Company Limited, HeungKong Securities Limited, and any
of the designated branches of the receiving banks, including Hang Seng Bank
Limited, Industrial and Commercial Bank of China (Asia) Limited, and Standard
Chartered Bank (Hong Kong) Limited; or apply online via the White Form eIPO
service at www.eipo.com.hk. Applicants can also instruct
HKSCC to process their applications by using Yellow Application Forms or via
electronic instructions.

(From left to right) KWG Living Group Holdings Limited Investor Relations Director Yu Jing, Chief Financial Officer Li Mingming, Executive Director and General Manager of the financial management center Yang Jingbo, Executive Director and Chief Executive Officer Kong Jiannan, Executive Director and General Manager of the residential property management department Wang Yue, human resources General Manager Kuang Xiaoling, General Manager of commercial department Cuiran

KWG Living Group Holdings Limited

Offer Statistics at-a-Glance