Sinopec Kantons : INSIDE INFORMATION - POSSIBLE DISPOSAL

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SINOPEC KANTONS HOLDINGS LIMITED

（ 中 石 化 冠 德 控 股 有 限 公 司 ）*

(incorporated in Bermuda with limited liability)

(Stock Code: 934)

INSIDE INFORMATION

POSSIBLE DISPOSAL

This announcement is made by Sinopec Kantons Holdings Limited (the "Company") pursuant to Rule 13.09(2)(a) 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 in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders (the "Shareholders") and potential investors of the Company that China Oil & Gas Pipeline Network Corporation ("PipeChina") has been established recently. The Company is in negotiations with PipeChina and other relevant parties and may possibly dispose of all or part of the assets related to natural gas pipelines held by the Company and its subsidiaries (the "Group") or the equity interest in members of the Group that hold such assets (the "Possible Disposal"). As of the date of this announcement, as the Possible Disposal is still in the preparation stage, the Group has not yet reached any agreements in relation to the Possible Disposal with any party. The Company will make further announcements in accordance with the requirements of the Listing Rules as and when appropriate.

The Board wishes to emphasise that the Possible Disposal is subject to, among others, the entering into of a binding agreement, the terms and conditions of which, including the assets to be disposed of and the consideration, are yet to be agreed upon. There is no guarantee that the Possible Disposal will materialise. As the Possible Disposal may or may not proceed, 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

Sinopec Kantons Holdings Limited

Chen Yaohuan

Chairman

Hong Kong, 10 December 2019

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As at the date of this announcement, the Board comprises the following:

Executive Directors

Mr. Chen Yaohuan (Chairman)

Mr. Xiang Xiwen (Deputy Chairman)

Mr. Dai Liqi

Mr. Li Jianxin

Mr. Wang Guotao

Mr. Ye Zhijun (Managing Director)

Independent non-executive Directors

Ms. Tam Wai Chu, Maria

Mr. Fong Chung, Mark

Dr. Wong Yau Kar, David

Ms. Wong Pui Sze, Priscilla

• For identification purposes only

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