Binhai Investment : Announcements and Notices - Profit Warning

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: 2886)

PROFIT WARNING

This announcement is made by Binhai Investment Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rule") 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 of directors of the Company (the "Board") wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018, the profit attributable to equity holders of the Company for the six months ended 30 June 2018 is expected to decrease by approximately 60% as compared to that for the corresponding period in 2017. Such significant decrease was mainly due to an increase in foreign exchange losses of approximately HK$68 million resulting from the depreciation of Renminbi and an increase in finance costs of the Group of approximately HK$62 million.

The information contained in this announcement is only based on information currently available to the Company and the Board's preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018. Such information and accounts are subject to finalization and other potential adjustments (if necessary), and are not based on any figures or information audited or reviewed by the auditor or the audit committee of the Company. Shareholders and potential investors are advised to carefully read the interim results announcement of the Group for the six months ended 30 June 2018, which is expected to be announced on 17 August 2018.

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

By Order of the Board

BINHAI INVESTMENT COMPANY LIMITED

Gao Liang

Executive Director

Hong Kong, 19 July 2018

As at the date of this announcement, the Board comprises two executive Directors, namely, Mr. Zhang Bing Jun and Mr. Gao Liang, four non-executive Directors, namely, Mr. Shen Xiao Lin, Mr. Zhang Jun, Mr. Wang Gang and Ms. Shi Jing, and four independent non-executive Directors, namely, Mr. Ip Shing Hing, J.P., Professor Japhet Sebastian Law, Mr. Tse Tak Yin and Mr. Lau Siu Ki, Kevin.

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