Dongyue : POSITIVE PROFIT ALERT

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DONGYUE GROUP LIMITED 東岳集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 189)

POSITIVE PROFIT ALERT

This announcement is made by Dongyue Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) 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 (Cap. 571 of the Laws of Hong Kong).

The board of directors of the Company (the "Board") wishes to inform the shareholders (the "Shareholders") and potential investors of the Company that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2017, the Group has recorded a substantial increase by more than 160% in its net profit attributable to owners of the Company for the year ended 31 December 2017 as compared to that for the year ended 31 December 2016.

Based on the information currently available to the Company, the Board considers that such increase was mainly attributable to (i) a continuous improvement in the market sentiment of the fluorine silicon industry resulting in increases in market prices of the Group's major products; (ii) the maintenance of stable and large-volume production by leveraging on the scale and industrial zones of the Group's fluorine silicon production chain, continuous development in the Group's technical expertise and enhanced production efficiency through strengthened management; and (iii) the ability of the Group, benefited from the "supply-side reform" of the PRC government, to maintain high production level in the context of tightened environmental protection and safety policies of the government.

The information contained in this announcement is only based on a preliminary assessment by the Board with reference to the unaudited consolidated management accounts of the Group for the year ended 31 December 2017 and information currently available to the Company, and is not based on any figures or information which have been audited or reviewed by the Company's auditors. Figures and information are in the course of being considered and checked and are therefore subject to adjustments. The Shareholders and potential investors of the Company should refer to the Group's annual results announcement for the year ended 31 December 2017, which is expected to be published by the end of March 2018, for details of the performance of the Group.

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 Dongyue Group Limited

Zhang Jianhong

Chairman

The PRC, 26 January 2018

As at the date of this announcement, the directors of the Company are Mr. Zhang Jianhong, Mr. Fu Kwan, Mr. Liu Chuanqi, Mr. Zhang Zhefeng, Mr. Zhang Bishu and Mr. Zhang Jian as executive directors, and Mr. Ting Leung Huel, Stephen, Mr. Yang Xiaoyong and Mr. Yue Run Dong as independent non-executive directors.