China Oriental : Announcements and Notices - Voluntary Announcement Situation of Tangshan Production Restriction

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CHINA ORIENTAL GROUP COMPANY LIMITED 中國東方集團控股有限公司*

（incorporated in Bermuda with limited liability）

（Stock code：581）

VOLUNTARY ANNOUNCEMENT

SITUATION OF TANGSHAN PRODUCTION RESTRICTION

This is a voluntary announcement made by China Oriental Group Company Limited (the "Company", together with its subsidiaries, the "Group") to inform its shareholders of the latest business development of the Group.

According to the "Relating to Launch of SO2, NO2 and CO Emission Reduction Action Plan Notice" issued by the Tangshan City Government of People's Republic of China, Tangshan City will carry out SO2 (sulphur dioxide), NO2 (nitrogen dioxide) and CO (carbon monoxide) emission reduction actions during the period from 20 July 2018 to 31 August 2018 in the whole city, explicitly defining the emission reduction action plan objectives, carrying out assessment on the density reduction value of the three gases in every county (city) area, so as to improve the air quality. According to specific requirements in the notice from the Qianxi County of Tangshan City Government dated 16 July 2018, Hebei Jinxi Iron and Steel Group Company Limited ("Jinxi Limited") and Hebei Jinxi Iron and Steel Group Special Steel Company Limited ("Jinxi Special Steel"), both being subsidiaries of the Group, have to restrict the overall blast furnace ironmaking production capacity by 20% and sintering process capacity by 42% (the "Restricted Capacity") during the period from 20 July 2018 to 31 August 2018.

The Group will perform social responsibility earnestly, respond to the calls of government departments proactively, and implement the related restriction measures firmly and thoroughly. At the same time, the Group has prepared reasonable optimisation proposals internally in advance for ensuring the impact is kept to a minimum, facilitating the production and operation of the Group in a stable and orderly manner and making proactive contribution to safeguard the improvement of air quality.

Both Jinxi Limited and Jinxi Special Steel are limited company established in the People's Republic of China, and are 97.6% indirectly owned subsidiaries of the Company. Jinxi Limited, Jinxi Special Steel and the Group are principally engaged in the manufacturing and sales of steel products. Jinxi Limited and Jinxi Special Steel has an annual iron and steel production capacity of approximately 8.5 million tonnes and 2.5 million tonnes respectively in the Qianxi County of Tangshan City. In addition, Jinxi Limited and the Group are also principally engaged in trading of steel products and iron ore and in real estate business.

The Company will provide its shareholders and potential investors with further update whenever it is necessary.

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

By order of the Board

China Oriental Group Company Limited

HAN Jingyuan

Chairman and Chief Executive Officer

Hong Kong, 18 July 2018

As at the date of this announcement, the Board of Directors of the Company comprises Mr. HAN Jingyuan, Mr. ZHU Jun, Mr. SHEN Xiaoling, Mr. ZHU Hao and Mr. HAN Li being the Executive Directors, Mr. Ondra OTRADOVEC being the Non-executive Director and Mr. WONG Man Chung, Francis, Mr. WANG Tianyi and Mr. WANG Bing being the Independent Non-executive Directors.

This announcement is published on the websites of the Company (www.chinaorientalgroup.com) and The Stock Exchange of Hong Kong Limited (www.hkexnews.hk).

*For identification purposes only