Lanzhou Zhuangyuan Pasture : ANNOUNCEMENT ON THE PROGRESS OF THE POLICY-BASED RELOCATION OF THE WHOLLY-OWNED SUBSIDIARY

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Lanzhou Zhuangyuan Pasture Co., Ltd.*

蘭州莊園牧場股份有限公司

(A joint stock limited company incorporated in the People's Republic of China)

(Stock code: 1533)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made by Lanzhou Zhuangyuan Pasture Co., Ltd.* (蘭州莊園牧場股份 有限公司) (the "Company") pursuant to Rule 13.10B of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

By Order of the Board

Lanzhou Zhuangyuan Pasture Co., Ltd.*

蘭州莊園牧場股份有限公司

Ma Hongfu

Chairman of the Board

Lanzhou, the PRC, 13 March 2020

As at the date of this announcement, the executive directors of the Company are

Mr. Ma Hongfu, Mr. Wang Guofu and Ms. Zhang Qianyu; the non-executive directors of the Company are Mr. Yap Kean Chong and Mr. Song Xiaopeng; and the independent non-executive directors of the Company are Ms. Liu Zhijun, Mr. Zhao Xinmin and Mr. Wong Cho Hang Stanley.

* For identification purposes only

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Stock Code: 002910

Stock abbreviation: Zhuangyuan Pasture

Announcement No.: 2020-018

Lanzhou Zhuangyuan Pasture Co., Ltd.*

ANNOUNCEMENT ON THE PROGRESS OF THE POLICY-BASED

RELOCATION OF THE WHOLLY-OWNED SUBSIDIARY

The Company and all members of the Board warrant that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions.

1. OVERVIEW OF THE POLICY-BASED RELOCATION
   According to the relevant requirements in the Notice of the General Office of Xining City People's Government on Printing and Distributing the Relocation Plan of the Farms along the Huangshui River in Xining City (Ning Zheng Ban [2016] No. 107), the Ordinance on Pollution Prevention and Control in Huangshui Watershed of Qinghai Province, the Ordinance on Water Pollution Prevention and Control in Qinghai Province, the Work Plan of Water Pollution Prevention and Control in Qinghai Province, the Notice of the General Office of Xining City People's Government on Printing and Distributing the Delimitation Plan for Forbidden Areas & Restriction Areas for Animal and Poultry Breeding in Xining City (Trial) (Ning Zheng Ban [2017] No. 143) and the Delimitation Plan of Forbidden Areas, Restricted Areas and Breeding Areas for Animal and Poultry Breeding in Huangyuan County (Yuan Zheng Ban [2016] No. 163), the area, where Qinghai Shengyuan Pasture Co., Ltd. (青海聖源牧場有限公司) ("Qinghai Shengyuan"), a wholly-owned subsidiary of Lanzhou Zhuangyuan Pasture Co., Ltd.* (蘭州莊園牧場股份有限公司) (the "Company"), is located, has been delimitated into forbidden areas for animal and poultry and included in the range of closure and relocation. Qinghai Shengyuan received the Notice of Closure within a Time Limit issued by the People's Government of Huangyuan County, Xining City.
   On 27 April 2019, the Company published the Indicative Announcement of Lanzhou Zhuangyuan Pasture Co., Ltd. on Receipt of the Policy-based Relocation Notice by the Wholly-owned Subsidiary (announcement no.: 2019-037) in respect of the relevant matters regarding the above-mentionedpolicy-based relocation on the designated information disclosure media such as China Securities Journal, Shanghai Securities News, Securities Daily, Securities Times and the website of CNINFO (http://www.cninfo.com.cn).

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1. PROGRESS OF THE POLICY-BASED RELOCATION
   Respecting the deployment of the pollution prevention and control work of Huangyuan County, Xining City, Qinghai Shengyuan has proactively responded to the work arrangement of the Government for relocation and closure, and has been proactively negotiating with the People's Government of Huangyuan County, Xining City in respect of the compensation matters.
   According to the relevant requirements of the Regulation on the Prevention and Control of Pollution Caused by Large Scale Breeding of Livestock and Poultry, the Regulation on Acquisition and Compensation of the Houses on the State-owned Land, etc., Qinghai Shengyuan has suffered from economic losses due to the policy-based relocation, and the People's Government of Huangyuan County, Xining City shall compensate us against losses in accordance with laws. However, we have not yet received any substantive compensation decision from the People's Government of Huangyuan County, Xining City, nor has it entered into any compensation agreement with Qinghai Shengyuan to date.
   In order to protect the legitimate interest and overall interest of the Company and its shareholders, Qinghai Shengyuan filed an administrative indictment to the Intermediate People's Court in Xining City, Qinghai Province. On 11 March 2020, Qinghai Shengyuan received the Notice of Acceptance by the Intermediate People's Court in Xining City [(2020) Qing 01 Xing Chu No. 16] serviced by the Intermediate People's Court in Xining City, Qinghai Province. The administrative indictment has been formally accepted by the Intermediate People's Court in Xining City, Qinghai Province.
   The Board of the Company will timely perform its continuous disclosure obligation in respect of the significant matters of the relocation according to the progress of the relocation of Qinghai Shengyuan in accordance with the requirements of the relevant laws, regulations and normative documents such as the Rules Governing the Listing of Shares on the Shenzhen Stock Exchange and the Measures for Management of Information Disclosure by Listed Companies.

The Board of Lanzhou Zhuangyuan Pasture Co., Ltd.*

13 March 2020

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