Binhai Investment : FURTHER ANNOUNCEMENT MADE PURSUANT TO RULES 13.51B(2) AND 13.51(2)(N)(V) 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)

FURTHER ANNOUNCEMENT MADE PURSUANT TO

RULES 13.51B(2) AND 13.51(2)(N)(V) OF THE LISTING RULES

This announcement is made by Binhai Investment Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rules 13.51B(2) and 13.51(2)(n)(v) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing

Rules").

Reference is made to the announcement of the Company dated 5 November 2019 (the "Announcement") in relation to the proceedings in the Market Misconduct Tribunal (the "MMT") involving Mr. LAU Siu Ki ( 劉紹基先生) ("Mr. Lau"), an independent non-executive director of the Company. Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

The Company wishes to provide an update on the recent development of the Proceedings. As stated in the press release published by the SFC on its website on 12 May 2021 (the "SFC Press Release"), following the Proceedings, the MMT has fined China Medical & HealthCare Group Limited (formerly known as COL Capital Limited) and six of its former and current directors (including Mr. Lau) a total of HK$4.2 million for failing to disclose inside information as soon as reasonably practicable. It was disclosed in the SFC Press Release that the aforesaid directors admitted that their negligent conduct had resulted in COL's breach of the requirements of the corporate disclosure regime.

According to the SFC Press Release, the MMT has made the following orders against Mr. Lau being

• former independent non-executive director of COL: (i) Mr. Lau was fined HK$300,000; (ii) Mr. Lau, together with COL and other sanctioned directors, were ordered to pay the SFC's investigation and legal costs, as well as the costs of the Proceedings; and (iii) Mr. Lau, together with other sanctioned directors, were ordered to attend an SFC-approved training programme on the corporate disclosure regime, directors' duties and corporate governance.

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The Proceedings and the abovementioned sanctions are not related to and do not involve the Group. The Company considers that the Proceedings and the abovementioned sanctions do not have any material adverse impact on the business and/or operation of the Group.

By Order of the Board

BINHAI INVESTMENT COMPANY LIMITED

Gao Liang

Executive Director

Hong Kong, 13 May 2021

As at the date of this announcement, the Board of Directors of the Company comprises three executive Directors, namely, Mr. Wang Zhiyong, Mr. Zuo Zhi Min and Mr. Gao Liang, three non- executive Directors, namely, Mr. Wang Gang, Mr. Shen Hong Liang and Mr. Yu Ke Xiang, 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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