Binhai Investment : Announcements and Notices - Voluntary Announcement the Acquisition of the Entire Share Cpaital of Nanjing Luyuan Gas Company Limited

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(Incorporated in Bermuda with limited liability)

(Stock Code: 2886)

VOLUNTARY ANNOUNCEMENT

THE ACQUISITION OF THE ENTIRE SHARE CPAITAL OF NANJING LUYUAN GAS COMPANY LIMITED*(南京綠源燃氣有限公司)

This announcement is made on a voluntary basis by Binhai Investment Company Limited (the "Company", and together with its subsidiaries, the "Group").

The board of directors of the Company (the "Board") is pleased to announce that Nanjing Binhai Gas Company Limited* (南京濱海燃氣有限公司), a wholly subsidiary of the Company, has completed a transaction with Shenzhen Gas Investment Company Limited* (深圳市燃氣投資有 限公司), an independent third party to the Group, to acquire the entire equity interest in Nanjing Luyuan Gas Company Limited* (南京綠源燃氣有限公司) (the "Target Company") at an aggregate consideration of RMB 32,500,000. The Target Company operates gas supply business in Hefengzhen of Lishui District of Nanjing, the PRC (中國南京市溧水區和鳳鎮), and has become an indirect wholly-own subsidiary of the Company.

The Target Company was established in 2010 and owns the pipeline gas franchise right in Hefengzhen Industrial Concentration Zone* (溧水區和鳳鎮工業集中區) in Lishui District, Nanjing, the PRC. The Target Company operates in Hefengzhen, which is located at the southern end of Lishui District covering an area of approximately 97.02 square kilometers and has a population of about 53,000. While Hefengzhen has been upgraded as the Electromechanical Industrial Park of the High-tech Economic Zone of the Lishui District, it has a low gas-supply rate. With its convenient transportation network, well-established infrastructure and vibrantcultural industry, Hefengzhen is anticipating a rapid infrastructure and economic development. Lishui District, being one of the vice-cities of Nanjing, has sustained a strong momentum in infrastructure development. Besides, Lishui District is accessible by the high-speed rail, subway and airplane, and thus creates a great potential in regional development and the growth of market volume in natural gas.

The acquisition of the Target Company has substantially expanded the scope of operation of the Group. Moreover, synergy is formed among the Target Company and relevant subsidiaries of the Company, which effectively maintained the integrity of the Group's regional operation. Such acquisition also enhances the Group's strength and influence in the gas industry, and creates a more favorable environment for promoting the integration of the gas market in Lishui District of Nanjing for the Group.

By order of the Board

Binhai Investment Company Limited

Gao Liang

Executive Director

Hong Kong, 12 March 2019

As at the date of this announcement, the Board comprises two executive directors, namely, Mr. ZHANG Bing Jun and Mr. GAO Liang, four non-executive directors, namely, Mr. SHEN Xiao Lin, Mr. ZHANG Jun, Mr. WANG Gang, Mr. YU Ke Xiang, and four independent non-executive directors, namely, Mr. IP Shing Hing, J.P., Mr. LAU Siu Ki, Kevin, Professor Japhet Sebastian LAW and Mr. TSE Tak Yin.

* For identification purposes only