To: All Financial/ Business Editors

FOR IMMEDIATE RELEASE

Leo becomes first company in Hong Kong to complete Green Financing for two consecutive years and secures total loan valued at HKD750 million

Hong Kong, 9 September 2019 – Leo Paper Group (Hong Kong) Limited (the “Group”), a global printing communications company based in Hong Kong, announced that its wholly-owned subsidiary Leo Paper Group Finance Limited (“Leo”) has signed a HKD400 million four-year term green loan and revolving credit facility¹ (“Green Loan”) with a group of eight leading banks today. Together with HKD350 million in Green Financing completed last year, the Group has secured green loans totalling HKD750 million in two years and has become the first company in Hong Kong to complete Green Loan for two consecutive years.

Committed to realising sustainable development, the Group considers energy and emission reduction a major global trend and the driver for rapid growth of the paper printing industry. It plans to utilise part of the HKD400 million green loan on developing a green project at its Heshan plant in China, the objectives of which include reducing energy consumption and carbon emissions, as well as curbing and treating gas, solid and water waste at its existing printing factories. It will also engage in other projects that promote green construction. Furthermore, the Group plans to utilise part of the loan to build a 80,000 sq. m. green plant in Southeast Asia that will comply with the UK Building Research Establishment Environmental Assessment Method (BREEAM) certification standard, hence it will meet stringent standards pertaining to energy consumption, and waste water and waste material discharge. This new plant in Southeast Asia is expected to commence production in 2021 and will further drive the Group’s business development.

Mr. Samuel Leung, Group Chairman, said, “In addition to increasing capital investments to reduce carbon emissions and save energy at our mainland plants, the Group has been actively implementing the ‘China Plus’ strategy for a few years now, and has been looking for suitable locations in Southeast Asia to bring its green printing philosophy to new markets.”

“The Sino-US trade friction which emerged in June 2018 remains an uncertainty today. To adapt to market changes and strengthen risk management, we have formed strategic partnerships with customers at their request, and set up another production base outside China. We believe that such moves will be helpful in alleviating the negative impact caused by the Sino-US trade war on businesses and costs of the Group and our customers. One year has passed, and today I am pleased to announce that our first plant in Southeast Asia has commenced production. It is among the first plants to be established in the region by a large printing group. As for our second plant in Southeast Asia, which has a land area of 80,000 sq. m., we officially took possession of the land and the new plant will start production in 2021. Our prompt response to market needs and changes has been the key to our success. ”

“It is worth noting that our second plant in Southeast Asia will be designed and built based on the high standards and stringent environmental protection regulations required for BREEAM certification, which reflects our determination and vision to promote environmental protection in different countries and markets, develop ‘zero waste plants’ and set new standards for the industry.”

Mr King Lai, CFO of the Group, said, “Despite the uncertainties in both the global and local markets since the beginning of this year, the Group still received strong support from various banks; securing Green Financing from them and completing the second round of our Green Financing plan, which amounted to HKD400 million involving eight leading banks in just two months. This is a testament to the confidence that the capital market has in our financial strength and prospects, which we are immensely proud of. We would like to thank the eight banks for their trust and recognition, and we will continue to deliver on our promise of leading the industry towards a greener future.”

Mr Terence Chiu, Head of Commercial Banking, Hong Kong, HSBC, said,“Sustainability is not an one-off event but continuous business transformation. After successfully establishing the green framework and raising the first green club loan for Leo Paper in 2018, we are delighted to support the company to complete its second green club loan this year. The proceeds will be used to finance green projects and invest in energy efficiency facilities, which supports Leo Paper commitment to sustainability to establish a long-term path to grow. This deal is a good example of how HSBC acts as a green structuring bank and helps our clients on continuous transition to sustainable business.”

Leo is the first privately-held company in Hong Kong to obtain the HKQAA Green Finance Certification. Since the Group secured HKD350 million in Green Financing in 2018, it has invested over HKD100 million in technical improvement projects for energy reduction, resulting in high environmental protection efficiency. For example, the Group purchased new energy saving and carbon reduction devices that resulted in the saving of close to 9.0 million kWh of electricity and the cutting of carbon emissions by 4,500 tonnes per year, thus helping it to greatly enhance its energy efficiency and ability to protect the environment.

The eight banking institutions that participated in the Green Financing exercise include (in alphabetical order):

Bank of China (Hong Kong) Ltd.

BNP Paribas

Citibank, N.A.

Hang Seng Bank Ltd.

The Hongkong and Shanghai Banking Corporation Limited

Mizuho Bank, Ltd.

MUFG Bank, Ltd.

The Bank of East Asia, Ltd.

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About Leo Paper Group (Hong Kong) Limited

Since 1982, the Group has engaged in business as a traditional printing company and since then, it has developed into a leading global printing communications company, providing its clients with comprehensive printing services. Over the years, the Group has continued to promote environmentally-friendly materials and cleaner production technologies. To enhance its green manufacturing capability, not only has the Group increased sourcing of “green” materials and developed products with green technologies, but it has also reduced waste and emissions and has reused resources. The Group strives to improve their environmental performance in the production and business operations to reduce the ecological footprint to help create a better future.

For media enquiries:

Name: Courtney Ngai

Title: Assistant Director

Strategic Financial Relations Ltd.

Phone: (852) 2114 4952

Email: courtney.ngai@sprg.com.hk

Name: Kay Lau

Title: Assistant Manager

Strategic Financial Relations Ltd.

Phone: (852) 2114 2239

Email: kay.lau@sprg.com.hk

Name: Emma Fung