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.

YUE YUEN INDUSTRIAL (HOLDINGS) LIMITED

裕 元 工 業（ 集 團 ）有 限 公 司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 00551)

INSIDE INFORMATION ADJUSTMENT OF EMPLOYEE BENEFIT PAYMENTS

This announcement is made by the board of directors (the "Board") of Yue Yuen Industrial (Holdings) Limited (the "Company" and together with its subsidiaries, the "Group") pursuant to the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule
13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong
Kong Limited.
The Group owns a factory (the "Gaobu Factory") in Gaobu Town, Dongguan City, Guangdong Province, the People's Republic of China which manufactures footwear products for its customers.
Some employees at the Gaobu Factory went on strike on 14 April 2014, demanding for adjustment of social insurance benefit and housing provident fund (collectively the "Employee Benefit Payments"). In response to certain employees' demand for the adjustment of the Employee Benefit Payments and to assist the Company in staff retention and staff recruitment, the Group decided to adjust the Employee Benefit Payments for the employees of the Gaobu Factory in accordance with the relevant local government policies with effect from 1 May 2014.
The Company will continue to review its employee benefits policy. Adjustment to the Employee Benefit Payments may have a material adverse effect on the financial performance of the Group.

* for identification purposes only

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

By Order of the Board

Lu Chin Chu

Chairman

As at the date of this announcement, the directors of the Company are: Executive Directors:

Mr. Lu Chin Chu (Chairman), Ms. Tsai Pei Chun, Patty (Managing Director), Mr. Tsai Chi Neng, Mr. Kuo Tai Yu, Mr. Kung Sung Yen, Mr. Chan Lu Min, Mr. Li I Nan, Steve, Mr. Lee Shao Wu, Mr. Tsai Ming-Lun, Ming and Mr. George Hong-Chih Liu.

Independent Non-executive Directors:

Dr. Liu Len Yu, Mr. Leung Yee Sik, Mr. Huang Ming Fu, Mr. Chu Li-Sheng, Mr. Yen Mun-Gie (also known as Teresa Yen) and Mr. Hsieh, Yung Hsiang (also known as Alfred Hsieh).

Hong Kong, 17 April 2014
Website: http://www.yueyuen.com
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