Binhai Investment : Announcements and Notices - Voluntary Announcement Natural Gas Entrusted Pipeline Transmission Four-party Agreement

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(Incorporated in Bermuda with limited liability)

(Stock code: 2886)

VOLUNTARY ANNOUNCEMENT

NATURAL GAS ENTRUSTED PIPELINE TRANSMISSION

FOUR-PARTY AGREEMENT

This announcement is made on a voluntary basis by Binhai Investment Company Limited (the "Company", and together with its subsidiaries, the "Group").

The board of directors of the Company (the "Board") is pleased to announce that Tianjin TEDA Binhai Clean Energy Group Company Limited*€˂ݵइ༺Ᏽऎ૶ᆎঐ๕ණྠϞࠢʮ̡("TEDA Energy", formerly known as Tianjin Binda Gas Enterprise Company Limited*€˂ݵᏵ༺ዷंྼ ุϞࠢʮ̡), a wholly-owned subsidiary of the Company, has recently entered into Natural Gas Entrusted Pipeline Transmission Four-party Agreement (the "Agreement") with Tianjin Natural Gas Sales Company of PetroChina Company Limited*€ʕ਷ͩذ˂್ंٰ΅Ϟࠢʮ̡˂್ंቖਯ˂ݵʱ ʮ̡("PetroChina Tianjin Company"), PetroChina Dagang Oil Fields Natural Gas Company*€ʕ ਷ͩذɽಥذ͞˂್ंʮ̡("PetroChina Dagang Company", and together with TEDA Energy, the "Transmitting Companies") and Tianjin Huadian Nanjiang Thermal Power Company Limited* €˂ݵശཥیᖛᆠཥϞࠢʮ̡("Tianjin Nanjiang"). The validity period of the Agreement is one year.

Pursuant to the terms of the Agreement, the Transmitting Companies shall transmit natural gas to Tianjin Nanjiang pursuant to the time and quantities requested by PetroChina Tianjin Company during the validity period of the Agreement. The annual volume of entrusted transmitting natural gas is the planned volume which is instructed to the Transmitting Companies by PetroChina Tianjin Company and is approved by the Transmitting Companies. The pipeline transmission fee is settled simultaneously by a one invoice system of natural gas fee between PetroChina Tianjin Company and Tianjin Nanjiang with reference to the actual amount of gas transmitted, and hence is collectively paid by PetroChina Tianjin Company to the Transmitting Companies. The pipeline transmission fee is settled on a monthly basis by PetroChina Tianjin Company and the Transmitting Companies.

The entering into of the Agreement is favourable to fostering the development of the pipeline transmission business of the Group, increasing revenue and profits from pipeline transmission fee of the Group and enhancing the rate of usage of the pipelines of the Group.

By order of the Board

Binhai Investment Company Limited

Gao Liang

Executive Director

Hong Kong, 8 December 2017

As at the date of this announcement, the Board comprises two executive directors, namely, Mr. ZHANG Bing Jun and Mr. GAO Liang, five non-executive directors, namely, Mr. SHEN Xiao Lin, Mr. ZHANG Jun, Mr. WANG Gang, Ms. ZHU Wen Fang 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.

*

For identification purpose only