Infinity Development : PROFIT WARNING

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INFINITY DEVELOPMENT HOLDINGS COMPANY LIMITED

星 謙 發 展 控 股 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 640) PROFIT WARNING

This announcement is made by Infinity Development Holdings Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(1) 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 (Cap. 571).

The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors of the Company that, based on the information currently available to the Company and preliminary review of the unaudited consolidated management accounts of the Group, it is expected to record a significant decline in the Group's profit for the year ended 30 September 2016 as compared with the net profit for the last corresponding year. The decline was mainly attributable to (i) a decline in the revenue of the Group; (ii) a decline in fair value gain of investment properties; and (iii) the Group changed the estimated useful life of certain intangible assets of the Group which significantly increased the amortization charge to be recognised in the books of the Group.

All of the above are subject to the review of the Board and the audit committee of the Company together with the discussion with the Company's auditors.

As the Company is still in the process of finalising the final results of the Group for the year ended 30 September 2016, the information contained in this profit warning announcement is only based on the Company's preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 30 September 2016, which have not been reviewed or audited by the Company's auditor or the audit committee of the Company. Further details of the Group's financial information for the year ended 30 September 2016 will be disclosed in the audited final results announcement, which are expected to be published on 30 December 2016.

The information contained in this announcement is only based on information currently available and the preliminary review by the Board. Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Infinity Development Holdings Company Limited Tong Yiu On

Executive Director

Hong Kong, 21 December 2016

As at the date of this announcement, the Board comprises five executive Directors, namely, Mr. Ieong Un, Mr. Ip Chin Wing, Mr. Ip Ka Lun, Mr. Stephen Graham Prince and Mr. Tong Yiu On and three independent non-executive Directors, namely Mr. Chan Wing Yau George, Mr. Simon Luk and Mr. Tong Hing Wah.