China Ocean Industry : COMPLETION OF THE SUBSCRIPTION OF NEW SHARES UNDER GENERAL MANDATE

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CHINA OCEAN INDUSTRY GROUP LIMITED 中海重工集團有限公司

(Incorporated in Bermuda with limited liability)

(Stock code: 00651)

COMPLETION OF THE SUBSCRIPTION OF NEW SHARES

UNDER GENERAL MANDATE

Financial Adviser

Draco Capital Limited

References are made to the announcements of China Ocean Industry Group Limited (the "Company") dated 10 March 2020, 17 March 2020, 9 April 2020, 15 May 2020, 5 June 2020, 19 June 2020, 10 July 2020, 31 July 2020, 31 August 2020, 30 September 2020, 30 October 2020, 30 November 2020 and 15 January 2021 respectively in relation to the subscription of the Subscription Shares under General Mandate (the "Announcements"). Unless otherwise defined herein, capitalised terms used herein shall have the same meanings as those defined in the Announcements.

COMPLETION OF SUBSCRIPTION OF NEW SHARES UNDER GENERAL MANDATE

The Board is pleased to announce that the condition precedent of the Subscription set out in the Subscription Agreements has been fulfilled. As a result, completion of the Subscription took place and an aggregate of 68,000,000 new Shares were issued and allotted under the General Mandate to the Subscribers on 8 March 2021.

To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiries, and save as disclosed in the Announcements, the Subscribers (and the ultimate beneficial owner of the Subscribers, if applicable) are third parties independent of the Company and its connected persons, and none of the Subscribers (and the ultimate beneficial owner of the Subscribers, if applicable) has become a substantial Shareholder as a result of the Subscription.

The net proceeds from the Subscription, after deducting related expenses, are approximately HK$6.64 million.

Pursuant to the information on shareholdings available to the Company as at the date of this announcement, the shareholding structure of the Company immediately before and immediately after completion of the Subscription is as follows:

Shareholder

Mr. Li Ming	31,219,448	9.16%
Lead Dragon Limited (Note 1)	13,550,125	3.97%
Mr. Zhang Shi Hong (Note 2)	242,750	0.07%
The Subscribers	-	-
Public Shareholders	295,908,648	86.80%
Total:	340,920,971	100.00%
Notes:

At the date of
this announcement
No. of Shares Approximately	No. of Shares	Approximately
%	%
31,219,448	7.64%
13,550,125	3.31%
242,750	0.06%
68,000,000	16.63%
295,908,648	72.36%
408,920,971	100.00%

Immediately after the Completion

• 1. Lead Dragon Limited is wholly-owned by Mr. Li Ming, the chairman and an executive Director.

• 2. Mr. Zhang Shi Hong is an executive Director.

By order of the Board

China Ocean Industry Group Limited

LI Ming

Chairman

Hong Kong, 8 March 2021

As at the date of this announcement, the Board of the Company comprises three executive directors, namely, Mr. Li Ming, Mr. Zhang Shi Hong and Mr. Zhang Chuanjun; and three independent non-executive directors, namely, Ms. Xiang Siying, Mr. Hu Bai He and Ms. Xiang Ying.