China Hongqiao : VOLUNTARY ANNOUNCEMENT

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China Hongqiao Group Limited

中國宏橋集團有限公司

(Incorporated under the laws of Cayman Islands with limited liability)

(Stock Code: 1378)

VOLUNTARY ANNOUNCEMENT

This is a voluntary announcement made by China Hongqiao Group Limited (the "Company", together with its subsidiaries, the "Group").

Reference is made to the cooperation agreement in relation to the establishment of a green aluminum

innovation industrial park (the "Cooperation Agreement") entered into between Shandong Weiqiao Chuangye Group Company Limited ( 山東魏橋創業集團有限公司, "Weiqiao Chuangye Group", a

related company of the Group) and the People's Government of Yunnan Province on 15 October 2019. Pursuant to the Cooperation Agreement, considering the abundant clean energy such as hydropower in Yunnan Province, Weiqiao Chuangye Group will build a green aluminum innovation industrial park in cooperation with the People's Government of Yunnan Province.

The Group believes that the construction of such low-carbon green aluminum innovation industrial park is conform to the next global transformation trend for new energy and the national policies for energy structure optimisation, key industries layout adjustment and industrial transfer direction. The Group will actively respond to the aforesaid Cooperation Agreement to fully enjoy and utilise the policy for integrating water, electricity and aluminum promoted by the People's Government of Yunnan Province, to further reduce the Group's production cost and reinforce its competitive advantages. The Group will formulate the best mode for participation in such green aluminum innovation industrial park upon the consideration of various factors, including the propose transfer of part of the Group's existing production equipment to such green aluminum innovation industrial park, to reduce the effect on the Group's production volume to the greatest extend. The Group believes that the Group's involvement in such green aluminum innovation industrial park will be conducive to the Group's continuous complete implementation of the development strategy of integrating the upstream and downstream businesses, the further improvement of the proportion of clean energy of the Group and the green sustainable development of the Group, thereby further consolidating and enhancing the Group's core competitiveness.

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The Company will make further announcements in accordance with the requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, if necessary.

By Order of the Board

China Hongqiao Group Limited

Zhang Bo

Chairman

Shandong, the People's Republic of China

16 October 2019

As at the date of this announcement, the Board comprises nine directors, namely Mr. Zhang Bo, Ms. Zheng Shuliang and Ms. Zhang Ruilian as executive directors, Mr. Yang Congsen, Mr. Zhang Jinglei and Mr. Chen Yisong (Mr. Zhang Hao as his alternate) as non-executive directors, and Mr. Xing Jian, Mr. Han Benwen and Mr. Dong Xinyi as independent non-executive directors.

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