Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

EXPANSION PLAN FOR POLYESTER

INDUSTRIAL YARN BUSINESS

THE PROPOSED INVESTMENT

The Board is pleased to announce that it has approved the investment of approximately US$185 million by Billion Fujian, in establishing production lines for polyester industrial yarn products, which will have an aggregate estimated production capacity of about 250,000 tons per year (the "Proposed Investment"). The Proposed Investment will include purchase of land and construction of a new factory with a total construction area of approximately 90,000 square meters for an amount of approximately US$33,000,000 in aggregregate. As a part of the development of the polyester industrial yarn products, the Group will procure 0.25 million tonnes of polyester device,SSP solid phase polymerization device,the production line of polyester industrial yarns, energy and environmental protection and supporting device at a cash consideration of US$152,000,000. The aggregate amount of the Proposed Investment, including the additional working capital required for the development of polyester industrial yarn products, is expected to be approximately US$185,000,000. The Directors expect that the new manufacturing facilities to be established under the polyester industrial yarn expansion plan will commence commercial production progressively starting from the second quarter of 2020.

As of the date of this announcement, the Group has not entered into any legally binding agreement in relation to the Proposed Investment. The Company will make further announcement(s) and will comply with the applicable provisions under the Listing Rules in relation to the Proposed Investment if and when appropriate.

REASONS FOR THE NEW INVESTMENT

The consumption of polyester industrial yarns in the PRC has been increasing in recent years. In particular, the polyester industrial yarn market in the eastern China region is expected to expand rapidly during 2017 to 2023. By expanding into the polyester industrial yarn market, the Company will be able to enjoy the growth in this market by leveraging on its existing scale and expertise in producing polyester yarn products.

Taking into account the abovementioned factors, the Board is of the view that the Proposed Investment is in the interests of the Company and the Shareholders as a whole. The new investment will be funded by funds generated from operations and internal resources of the Company.

DEFINITIONS

In this announcement, the following expressions shall have the following meanings unless the otherwise stated:

"Billion Fujian"

Fujian Billion Polymerization Fiber Technology Industrial

Co., Ltd.*（福建百宏聚纖科技實業有限公司）, a limited

liability company established under the laws of the PRC and

an indirect wholly-owned subsidiary of the Company

"Board"

the board of Directors

"Company"

Billion Industrial Holdings Limited, a company incorporated

in the Cayman Islands with limited liability whose shares are

listed on the Stock Exchange

"Director(s)"

director(s) of the Company

2

"Group"

the Company and its subsidiaries

"Listing Rules"

the Rules Governing the Listing of Securities on the Stock

Exchange

"PRC"

the People's Republic of China

"Shareholder(s)"

shareholder(s) of the Company

"Stock Exchange"

The Stock Exchange of Hong Kong Limited

"US$"

United States dollar(s), the lawful currency of the United

States

Hong Kong, 12 September 2018

By Order of the Board Billion Industrial Holdings Limited

Sze Tin Yau

Chairman

As at the date of this announcement, the Board comprises Mr. Sze Tin Yau and Mr. Wu Jinbiao as executive Directors, Mr. Zeng Wu as non-executive Director and Mr. Chan Shek Chi, Mr. Ma

Yuliang and Mr. Lin Jian Ming as independent non-executive Directors.

* For identification purposes only

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Billion Industrial Holdings Limited published this content on 12 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 September 2018 10:27:03 UTC