China Lumena New Materials : QUARTERLY UPDATE ON THE PROPOSED RESTRUCTURING

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.

CHINA LUMENA NEW MATERIALS CORP.

(In Provisional Liquidation)

(Incorporated in Cayman Islands with limited liability)

(Stock Code: 67)

QUARTERLY UPDATE ON THE PROPOSED RESTRUCTURING

Financial Adviser to the Company

Reference is made to the announcements of the Company dated 7 November 2019, 19 December 2019, 23 December 2019, 9 January 2020, 16 January 2020, 7 February 2020, 14 February 2020, 31 March 2020, 11 May 2020, 9 June 2020 and 30 June 2020 respectively (the "Announcements") and the circular of the Company dated 29 November 2019 (the "Circular") in relation to the Proposed Restructuring. Capitalised terms used herein shall have the same meanings as those defined in the Announcements and the Circular.

This announcement provides a quarterly update on the business operations of the Group and the Proposed Restructuring.

BUSINESS OPERATIONS

As disclosed in the Company's announcement dated 11 May 2020, the Group have had minimal operation since the appointment of the Provisional Liquidators and all subsidiaries have been deconsolidated from the consolidated financial statements of the Group and the Group did not generate any revenue for the four years ended 31 December 2019. This situation remains unchanged as at the date of this announcement. Upon completion of the Proposed Restructuring, the Enlarged Group is expected to have a sufficient level of operations pursuant to the Listing Rules.

1

THE PROPOSED RESTRUCTURING

A renewed New Listing Application, together with the draft Share Offer Prospectus, were submitted to the Stock Exchange on 8 June 2020. Subsequently, further comments on the draft Share Offer Prospectus were received from the Regulators. As at the date of this announcement, the Company is working closely with the Target Group and all professional parties to update the relevant information (including but not limited to the financial information of the Target Group) in, and addressing the comments raised by Regulators to be reflected on, the draft Share Offer Prospectus.

FULFILMENT OF RESUMPTION CONDITIONS

The Company has already published all outstanding financial results as at the date of this announcement. The Company is working closely with the Target Group and all professional parties to fulfill the remaining Resumption Conditions upon completion of the Proposed Restructuring.

CONTINUED SUSPENSION OF TRADING IN THE SHARES

Dealing in the Shares on the Main Board of the Stock Exchange has been suspended since 25 March 2014 and will remain suspended until further notice.

Shareholders and potential investors should note that this announcement is for information purpose only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Shares or other securities of the Company. Further details about the Share Offer will be set out in the Share Offer Prospectus to be issued by the Company in due course.

Shareholders and potential investors should also note that the resumption of trading in the Shares of the Company on the Stock Exchange is subject to various conditions which may or may not be fulfilled. There is no guarantee that the resumption of trading in the Shares of the Company on the Stock Exchange will take place. Shareholders and potential investors are reminded to exercise caution when dealing in the Shares of the Company.

For and on behalf of

China Lumena New Materials Corp.

(In Provisional Liquidation)

Man Chun So

Yat Kit Jong

Simon Conway

Joint Provisional Liquidators

Acting as agents without personal liability

Hong Kong, 11 August 2020

As at the date of this announcement, the Board comprises three executive directors: Mr. Zhang Zhigang, Mr. Zhang Daming and Mr. Shi Jianping.

2