China Wood Optimization : SUPPLEMENTAL ANNOUNCEMENT DISCLOSEABLE TRANSACTION PROVISION OF LOAN

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China Wood Optimization (Holding) Limited

中 國 優 材 ( 控 股 ) 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1885)

SUPPLEMENTAL ANNOUNCEMENT

DISCLOSEABLE TRANSACTION

PROVISION OF LOAN

Reference is made to the announcement of China Wood Optimization (Holding) Limited (the "Company") dated 14 August 2020 (the "Announcement") in relation to the provision of Loan. Capitalised terms used herein shall have the same meanings as those defined in the Announcement unless otherwise defined.

The Board wishes to provide additional information on the Borrower. The Borrower, Hebei Overseas Listed Equity Investment Fund Co., Ltd.* (河北境外上市股權投資基 金有限公司), is ultimately owned or controlled as to (i) 27% by Xingtai Municipal Government Investment and Financing Management Center* (邢臺市政府投融資管 理中心); (ii) 26.2% by State-owned Assets Management Committee of Hebei Province* (河北省國有資產管理委員會); (iii) 18.0% by Shijiazhuang City Finance Bureau* (石家莊市財政局); (iv) 10.0% by State-owned Assets Supervision and Administration Commission of Cangzhou Municipal People's Government (滄州市人 民政府國有資產監督管理委員會); (v) 8.0% by Hengshui City Finance Bureau* (衡水市財政局); (vi) 4% by State-owned Assets Supervision and Administration Commission of Handan Municipal People's Government* (邯鄲市人民政府國有資產 監督管理委員會); (vii) approximately 2.2% by Sun Hongbao (孫洪寶); (viii) approximately 0.6% by Wang Changlan (王長蘭); (ix) 2.0% by Cangzhou High-tech Industrial Development Zone Management Committee* (滄州高新技術產業開發區管 理委員會); and (x) 2.0% by Ningjin County State-owned Assets Administration* (寧 晉縣國有資產管理局).

* for identification purpose only

By order of the Board

China Wood Optimization (Holding) Limited

Yim Tsun

Chairlady

Hong Kong, 19 August 2020

As at the date of this announcement, the executive Directors are Ms. Yim Tsun and Mr. Li Li; and the independent non-executive Directors are Mr. Zhang Dali, Mr. Pu Junwen and Mr. Lau Ying Kit.