China Oriental : Announcements and Notices - Inside Information Situation of 2018 Winter Production Restriction

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CHINA ORIENTAL GROUP COMPANY LIMITED 中國東方集團控股有限公司*

（incorporated in Bermuda with limited liability）

（Stock code：581）

INSIDE INFORMATION

SITUATION OF 2018 WINTER PRODUCTION RESTRICTION

This announcement is made by China Oriental Group Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

According to the "Air Pollution Prevention and Control Action Plan in Beijing, Tianjin, Hebei and Surrounding Regions for 2018-2019 Autumn and Winter Seasons" jointly issued by the Ministry of Ecology and Environment of the People's Republic of China and other related departments (the "Policy") in September 2018, and the instructions of specific requirements from the relevant departments of Hebei Province and Tangshan City Government, Hebei Jinxi Iron and Steel Group Company Limited ("Jinxi Limited") and Hebei Jinxi Iron and Steel Group Special Steel Company Limited ("Jinxi Special Steel") of the Group have to restrict their blast furnace ironmaking production capacity by a total of 837,700 tonnes (the "Restricted Capacity") during the period from 1 October 2018 to 31 March 2019. The Policy was formulated in contemplation of the prevention measures towards air pollution for 2018-2019 as a result of the frequent incidences of heavy pollution weather in Beijing, Tianjin, Hebei and surrounding regions during the autumn and winter seasons.

The Group will perform social responsibility earnestly, respond to the calls of government departments proactively, and implement the related restriction measures firmly and thoroughly. Concurrently, the Group has prepared reasonable and practicable optimisation proposals internally in advance for ensuring the impact of the Restricted Capacity is kept to a minimum, facilitating the production and operation of the Group in a stable and orderly manner and making proactive contribution to safeguard the improvement of air quality.

Both Jinxi Limited and Jinxi Special Steel are limited company established in the People's Republic of China, and are 97.6% indirectly owned subsidiaries of the Company. Jinxi Limited, Jinxi Special Steel and the Group are principally engaged in the manufacturing and sales of steel products. Jinxi Limited and Jinxi Special Steel have an annual iron and steel production capacity of approximately 8.5 million tonnes and 2.5 million tonnes respectively in the Qianxi County of Tangshan City. In addition, Jinxi Limited and the Group are also principally engaged in trading of steel products and iron ore and in real estate business.

The Company will provide its shareholders and potential investors with further update whenever it is necessary.

Shareholders of the Company and/or potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

China Oriental Group Company Limited

HAN Jingyuan

Chairman and Chief Executive Officer

Hong Kong, 13 November 2018

As at the date of this announcement, the Board of Directors of the Company comprises Mr. HAN Jingyuan, Mr. ZHU Jun, Mr. SHEN Xiaoling, Mr. ZHU Hao and Mr. HAN Li being the Executive Directors, Mr. Ondra OTRADOVEC being the Non-executive Director and Mr. WONG Man Chung, Francis, Mr. WANG Tianyi and Mr. WANG Bing being the Independent Non-executive Directors.

This announcement is published on the websites of the Company (www.chinaorientalgroup.com) and The Stock Exchange of Hong Kong Limited (www.hkexnews.hk).

*For identification purposes only