Founder : INSIDE INFORMATION ANNOUNCEMENT ON NOTIFICATION LETTER FROM PEKING FOUNDER IN RELATION TO THE COURT RULING FOR ITS SUBSTANTIVE CONSOLIDATED RESTRUCTURING

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Bermuda with limited liability)

(Stock Code: 00418)

INSIDE INFORMATION

ANNOUNCEMENT ON

NOTIFICATION LETTER FROM PEKING FOUNDER

IN RELATION TO THE COURT RULING

FOR ITS SUBSTANTIVE CONSOLIDATED RESTRUCTURING

This announcement is made by the Founder Holdings Limited (the "Company") 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 (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong) (the "SFO").

We refer to (i) the announcement of the Company dated 18 February 2020 in relation to the notification letter from Peking University Founder Group Company Limited ("Peking Founder"), a substantial shareholder of the Company, regarding its restructuring being applied, (ii) the announcement of the Company dated 19 February 2020 in relation to the notification letter from Peking Founder regarding the acceptance of its restructuring by the court, and (iii) the announcement of the Company dated 17 July 2020 in relation to the notification letter from Peking Founder regarding the substantive consolidated restructuring of its subsidiaries being applied. Unless otherwise stated, capitalized terms used herein shall have the same meanings as defined in such announcements.

The Company received a notification letter from Peking Founder on 31 July 2020, regarding a civil order and decision letter received by the administrator of Peking University Founder Group Company Limited from The First Intermediate People's Court of Beijing (the "Court"). Pursuant to the civil order and decision letter, the Court decided to accept the substantive consolidated restructuring of Peking Founder, Peking University Founder Information Industry Group Co., Ltd., which is the direct controlling shareholder of the Company, Founder Industry Holdings Co., Ltd., PKU Healthcare Industry Group Co., Ltd., and Peking University Resource Group Limited (collectively "the Five Companies including Peking Founder") and appoint the administrator of Peking University Founder Group Company Limited as the administrator of substantive consolidated restructuring of the Five Companies including Peking Founder.

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The Company will continue to closely follow the subsequent development and influence of this incident and comply with relevant disclosure requirements under the Listing Rules and the SFO in a timely manner.

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

By Order of the Board

Founder Holdings Limited

Cheung Shuen Lung

Chairman

Hong Kong, 31 July 2020

As at the date of this announcement, the board of directors of the Company comprises executive directors of Mr Cheung Shuen Lung (Chairman), Mr Shao Xing (President), Professor Xiao Jian Guo, Ms Zuo Jin, Mr Hu Bin and Ms Liao Hang, and the independent non-executive directors of Mr Chan Chung Kik, Lewis, Mr Lau Ka Wing and Mr Lai Nga Ming, Edmund.

• For identification purpose only

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