Binhai Investment : Announcements and Notices - Inside Information Application by Tianjin Steel Pipe for Revocation of Arbitration Award

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(Incorporated in Bermuda with limited liability)

(Stock Code: 2886)

INSIDE INFORMATION APPLICATION BY TIANJIN STEEL PIPE FOR REVOCATION OF ARBITRATION AWARD

This announcement is made by Binhai Investment Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Reference is made to the announcement dated 20 November 2018 by the Company on the application by Tianjin TEDA Binhai Clean Energy Group Co., Ltd.* (天津泰達濱海清潔能 源集團有限公司) (a wholly-owned subsidiary of the Company) ("Tianjin Clean Energy") for arbitration proceedings at Tianjin Arbitration Commission against Tianjin Steel Pipe Manufacturing Co., Ltd* (天津鋼管製造有限公司) ("Tianjin Steel Pipe") for failing to honour its contractual obligation to pay the transaction amounts under an agreement for sale of natural gas, and the announcement dated 20 March 2019 by the Company on the grant of final arbitration award in respect of such arbitration proceedings. Capitalised terms used in this announcement shall have the same meanings as defined in the aforesaid announcements of the Company, unless otherwise defined in this announcement.

The Company wishes to provide an update that Tianjin Clean Energy has not received payment from Tianjin Steel Pipe of the amounts under the Arbitration Award. Tianjin Clean Energy proceeded to apply to the No. 3 Intermediate People's Court of Tianjin Municipality for enforcement of the Arbitration Award. However, Tianjin Clean Energy subsequently received summons for an application by Tianjin Steel Pipe to the No. 2 Intermediate People's Court of Tianjin Municipality for revocation of the Arbitration Award on the ground that the penalty for overdue payment under the Arbitration Award was excessively high.

Tianjin Clean Energy will raise objection to the above application by Tianjin Steel Pipe for revocation of the Arbitration Award in accordance with legal procedures.

There is no assurance that the amounts awarded to the Group under the Arbitration Proceedings will be eventually recovered. The Company will make further announcement(s) to update the shareholders of the Company and the public on the above matter as and when appropriate.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

BINHAI INVESTMENT COMPANY LIMITED

Gao Liang

Executive Director

Hong Kong, 12 April 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 and 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 purpose only