DeTai New Energy : DISCLOSEABLE TRANSACTION RELATING TO THE PROVISION OF LOAN

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: 559)

DISCLOSEABLE TRANSACTION RELATING TO THE PROVISION OF LOAN

The Board announces that on 20 January 2017 (after trading hours), the Lender, an indirect wholly-owned subsidiary of the Company, entered into the Loan Agreement with the Borrower, pursuant to which the Lender has agreed to lend a loan of HK$20,000,000 to the Borrower for a period from the date of drawdown (which is 20 January 2017) to 19 July 2017 at an interest rate of 12% per annum.

As the relevant applicable percentage ratios in respect of the Loan are more than 5% but less than 25%, the provision of the Loan constitutes a discloseable transaction for the Company under the Listing Rules and is subject to the notification and announcement requirements under the Listing Rules.

THE LOAN AGREEMENT

Date : 20 January 2017 (after trading hours)

Lender : DeTai Finance Limited, an indirect wholly-owned subsidiary of the Company

Borrower : The Borrower, who and whose ultimate beneficial owners, to the best of the Directors' knowledge, information and belief, having made all reasonable enquiries, are Independent Third Parties

Principal terms of the Loan Agreement

Amount of the Loan

: HK$20,000,000

Term : From date of drawdown (which is 20 January 2017) to 19 July 2017

Interest : 12% per annum

Repayment : The outstanding principal amount and accrued interest of the Loan shall be repaid on 19 July 2017

Prepayment : The Loan may be prepaid in whole or in part, without prepayment penalty, with accrued interest up to and including the date of prepayment on the outstanding balance of the Loan to be prepaid by notice in writing

The terms of the Loan Agreement were arrived at after arm's length negotiations between the Lender and the Borrower with reference to the financial background and repayment ability of the Borrower. The Lender is a registered money lender holding a valid money lenders licence under the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong) and is principally engaged in the business of money lending service.

The Loan will be funded from internal resources of the Group. The purpose of the Loan is for working capital of the existing business of the Borrower and its subsidiaries in the PRC.

Information on the Group

The Group is principally engaged in new energy business, hotel hospitality business, property investment, manufacturing and trading of electric cycles, trading and distribution of liquor and wine, provision of money lending services and investments in listed securities.

Information on the Borrower

To the best knowledge, information and belief of the Directors having made all reasonable enquiries, the Borrower, through its subsidiaries, is principally engaged in money lending, provision of pawn loans and financial consultancy services in the PRC.

Reasons for provision of the Loan

The provision of the Loan will provide reasonable interest income to the Lender and the Loan will be recorded as loan receivables of the Group.

The Directors consider that the transactions contemplated under the Loan Agreement are in ordinary and usual course of business of the Group and on normal commercial terms and the terms of the Loan Agreement are fair and reasonable and in the interests of the Company and its Shareholders as a whole.

IMPLICATIONS UNDER THE LISTING RULES

As the relevant applicable percentage ratios in respect of the provision of the Loan are more than 5% but less than 25%, the provision of the Loan constitutes a discloseable transaction for the Company under the Listing Rules and is subject to the notification and announcement requirements under the Listing Rules.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following words and expressions shall have the following meanings when used herein:

''Board'' the board of Directors

''Borrower'' a corporate borrower who is an Independent Third Party

''Company'' DeTai New Energy Group Limited, a company incorporated in Bermuda with limited liability whose issued Shares are listed on the main board of the Stock Exchange

''connected person(s)'' has the meaning ascribed to it under the Listing Rules

''Director(s)'' the director(s) of the Company

''Group'' the Company and its subsidiaries

''HK$'' Hong Kong dollars, the lawful currency of Hong Kong

''Hong Kong'' Hong Kong Special Administrative Region of the PRC

''Independent Third Party(ies)''

any person(s) or company(ies) and their respective ultimate beneficial owner(s) are third parties independent of and not connected with the Group and its connected persons in accordance with the Listing Rules

''Lender'' DeTai Finance Limited, a company incorporated in Hong Kong with limited liability and an indirect wholly-owned subsidiary of the Company

''Listing Rules'' the Rules Governing the Listing of Securities on the Stock

Exchange

''Loan'' the term loan in the amount of HK$20,000,000 granted by the Lender to the Borrower pursuant to the terms of the Loan Agreement

''Loan Agreement'' the loan agreement dated 20 January 2017 entered into

between the Lender and the Borrower relating to the granting of the Loan

''PRC'' The People's Republic of China which, for the purposes of this announcement, excludes Hong Kong, the Macau Special Administrative Region and Taiwan

''Share(s)'' ordinary share(s) of HK$0.05 each in the share capital of the Company

''Shareholder(s)'' holder(s) of the issued Share(s)

''Stock Exchange'' The Stock Exchange of Hong Kong Limited

''%'' per cent.

By order of the Board

DeTai New Energy Group Limited Wong Hin Shek

Chairman and Executive Director

Hong Kong, 20 January 2017

As at the date of this announcement, the executive Directors are Mr. Wong Hin Shek and Mr. Chi Chi Hung, Kenneth; the non-executive Director is Mr. Chui Kwong Kau; and the independent non-executive Directors are Mr. Chiu Wai On, Mr. Man Kwok Leung and Dr. Wong Yun Kuen.