Founder : INSIDE INFORMATION ANNOUNCEMENT ON NOTIFICATION LETTER FROM PEKING FOUNDER ON ITS POTENTIAL 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 ON ITS POTENTIAL 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").

The Company has recently received a notification letter from Peking University Founder Group Company Limited ("Peking Founder"), a controlling shareholder of the Company, regarding a notice received by Peking Founder from The First Intermediate People's Court of Beijing (the "Court"). According to such notice, Bank of Beijing Co., Ltd. applied to the Court for a restructuring of Peking Founder. As of the date of this announcement, it is uncertain whether such application for restructuring has been accepted by the Court and whether Peking Founder will be required to go through a restructuring.

The Company confirms that the incident mentioned above currently has no material adverse impact on the Company's operation and the Company currently maintains a health financial position with cash sufficient for its operation on hand. The Company will closely follow the developments of this incident and the status of receivables from Peking Founder, and comply with relevant disclosure requirements under the Listing Rules and the SFO in a timely manner.

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Shareholders and potential investors 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, 18 February 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 Li Fat Chung, Ms Wong Lam Kit Yee and Mr Chan Chung Kik, Lewis.

• For identification purpose only

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