Announcement - In relation to the matter of CECEP COSTIN New Materials Group Limited (In Provisional Liquidation) (Incorporated in Cayman Islands with limited liability) (Stock Code: 2228) Proceeding to third stage of delisting procedures

香港聯合交易所有限公司 (香港交易及結算所有限公司全資附屬公司)
THE STOCK EXCHANGE OF HONG KONG LIMITED(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)

ANNOUNCEMENT

In relation to the matter of
CECEP COSTIN New Materials Group Limited (In Provisional Liquidation)
(Incorporated in Cayman Islands with limited liability)
(Stock Code: 2228)

Proceeding to third stage of delisting procedures

Trading of the Company's shares was suspended on 15 August 2016 pending release of an inside information announcement.

By 14 December 2016 the Exchange was of the view that the Company did not comply with the requirement to have sufficient operations or assets under Rule 13.24. The Exchange placed the Company into the first and second delisting stages on 14 December 2016 and 26 June 2017 respectively. At the end of the second delisting stage on 25 December 2017, the Company did not provide any resumption proposal. Therefore, the Exchange has decided to place the Company into the third delisting stage under Practice Note 17 to the Listing Rules.

The Company will have a final six months to provide a viable resumption proposal to demonstrate sufficient operations or assets as required under Rule 13.24.

The Company must also:

1. conduct an appropriate investigation on the misappropriation of funds by Mr Chim Wai Kong, being a former executive director and co-chairman of the Company, disclose the findings of the investigation, assess the impact on the Company's financial and operational positions, and take appropriate remedial actions;
   
2. have the winding up petitions against the Company (and its subsidiaries), where applicable, withdrawn or dismissed and the provisional liquidators discharged;
3. demonstrate that there is no reasonable regulatory concern about management integrity;
   
4. publish all outstanding financial results and address any audit qualifications; and
   
5. inform the market about all material information of the Company.

If no viable resumption proposal is received by the end of the third delisting stage (ie 23 July 2018), the Company's listing will be cancelled. The Exchange will make a further announcement if the delisting takes place.

Ends