Binhai Investment : ANNOUNCEMENT MADE PURSUANT TO RULES 13.51B(2) AND 13.51(2)(U) OF THE LISTING RULES

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)

ANNOUNCEMENT MADE PURSUANT TO

RULES 13.51B(2) AND 13.51(2)(U) OF THE LISTING RULES

This announcement is made by Binhai Investment Company Limited (the "Company") pursuant to Rules 13.51B(2) and 13.51(2)(u) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

The Company has been informed that Mr. LAU Siu Ki ( 劉紹基先生) ("Mr. Lau"), an independent non-executive director of the Company, has been named as one of the six individuals against whom the Securities and Futures Commission ("SFC") has commenced proceedings in the Market Misconduct Tribunal in relation to China Medical & Healthcare Group Limited (formerly known as COL Capital Limited) ("COL") as described below (the "Proceedings"). Mr. Lau was formerly an independent non-executive director of COL.

As stated in the press release issued by the SFC on 31 October 2019, the Proceedings involve COL and six individuals who were directors of COL at the material time, including Mr. Lau. The SFC alleges that COL failed to disclose inside information in 2014 in relation to its significant gains in securities trading as soon as reasonably practicable, and had therefore breached the relevant statutory corporate disclosure requirement. The SFC claims those six individuals to have caused the alleged breach of COL as a result of their reckless or negligent conduct.

Mr. Lau has informed the Company that he disagrees with the SFC's allegations against him in the Proceedings, and that he intends to contest the Proceedings vigorously.

The Proceedings do not involve the Company or any of its subsidiaries (collectively the "Group"). The Company considers that the Proceedings do not have any material adverse impact on the Group's business and/or operation.

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The Company will make further announcement(s) in relation to the above matter as and when appropriate in accordance with the Listing Rules.

By Order of the Board

BINHAI INVESTMENT COMPANY LIMITED

Gao Liang

Executive Director

Hong Kong, 5 November 2019

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. Wang Gang, Mr. Yu Ke Xiang, Ms. Cao Hong Mei and Ms. Peng Bo, and three independent non-executive Directors, namely, Mr. Ip Shing Hing, J.P., Mr. Lau Siu Ki, Kevin and Professor Japhet Sebastian Law.

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