Chu Kong Ptrlm&Ntrl Gs Stl Pipe Hldg : RESIGNATION AND APPOINTMENT OF INDEPENDENT NON-EXECUTIVE DIRECTOR AND CHAIRMAN OF AUDIT COMMITTEE

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CHU KONG PETROLEUM AND NATURAL GAS STEEL PIPE HOLDINGS LIMITED

珠江石油天然氣鋼管控股有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 1938)

RESIGNATION AND APPOINTMENT OF

INDEPENDENT NON-EXECUTIVE DIRECTOR AND

CHAIRMAN OF AUDIT COMMITTEE

Resignation of independent non-executive Director and chairman of the Audit Committee

The board (the "Board") of directors (the "Directors") of Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited (the "Company") announces that Mr. See Tak Wah ("Mr. See") has tendered his resignation as an independent non-executive Director with effect from 1 October 2019 in order to pursue his other personal business commitments. Upon his resignation, Mr. See will also cease to be the chairman of the audit committee of the Company (the "Audit Committee) on the same date. Mr. See will however continue to serve as a consultant of the Company upon his resignation.

Mr. See has confirmed that he has no disagreement with the Board in any respect and there are no matters relating to his resignation that need to be brought to the attention of the shareholders of the Company.

Mr. See has served as an independent non-executive Director for more than 9 years. The Board would like to take this opportunity to express its sincere gratitude to Mr. See for his valuable contribution to the Company during his tenure and in his new role as the consultant of the Company.

Appointment of independent non-executive Director and chairman of the Audit Committee

The Board is pleased to announce that following the resignation of Mr. See, Mr. Au Yeung Kwong Wah (歐陽廣華) ("Mr. Au Yeung") will be appointed as an independent non-executive Director and the chairman of the Audit Committee with effect from 1 October 2019.

Mr. Au Yeung, aged 55, obtained a bachelor's degree in commerce from the Bond University in Australia in September 1996, a master's degree in accountancy from the Chinese University of Hong Kong in December 2000, a postgraduate diploma in corporate administration from the

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Hong Kong Polytechnic University in December 2005 and an EMBA degree from the Chinese University of Hong Kong in December 2008. Mr. Au Yeung is a member of CPA Australia and the Hong Kong Institute of Certified Public Accountants. He has over 20 years of experience in auditing and financial control through his prior employments with accounting firms and listed companies in Hong Kong. Mr. Au Yeung has been an independent non-executive director of Modern Media Holdings Limited, a company listed on The Stock Exchange of Hong Kong Limited (stock code: 72), until his resignation with effect from 1 October 2019.

Mr. Au Yeung will be appointed as an independent non-executive Director by a letter of appointment for a term of two years from 1 October 2019 to 30 September 2021, subject to retirement by rotation and re-election at the annual general meetings of the Company in accordance with the articles of association of the Company (the "Articles") and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). Mr. Au Yeung is entitled to an annual remuneration of HKD220,000, which is determined by the remuneration committee of the Company (the "Remuneration Committee") and the Board with reference to his duties and responsibilities in the Company, the prevailing market rate for candidates with comparable qualifications and the current remuneration package for other independent non-executive Directors, and shall be reviewed by the Remuneration Committee from time to time. Pursuant to the Articles, Mr. Au Yeung will hold office until the forthcoming annual general meeting of the Company and shall then be eligible for re-election.

To the best knowledge of the Directors and save as disclosed above, Mr. Au Yeung did not hold any other directorship in the last three years in any other public companies, the securities of which are listed on any security market in Hong Kong or overseas. Mr. Au Yeung does not have any relationship with any of the Directors, senior management, substantial shareholders or controlling shareholders of the Company. Mr. Au Yeung does not hold any other positions in the Company or any member of the group to which the Company belongs. As at the date of this announcement, Mr. Au Yeung does not have any interests in the shares of the Company or any of its associated corporations (within the meaning under Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)). Mr. Au Yeung has confirmed that he meets the independence criteria as set out under Rule 3.13 of the Listing Rules.

Save as disclosed above, there is no information required to be disclosed pursuant to paragraphs

1. to (v) of Rule 13.51(2) of the Listing Rules or any other matters in relation to the appointment of Mr. Au Yeung that need to be brought to the attention of the shareholders of the Company.

The Board would like to take this opportunity to welcome Mr. Au Yeung to join the Company.

By order of the Board

Chu Kong Petroleum and Natural Gas

Steel Pipe Holdings Limited

Chen Chang

Chairman

Guangdong Province, the PRC, 30 September 2019

As at the date of this announcement, the Board comprises three executive directors, namely Mr Chen Chang, Ms Chen Zhao Nian and Ms Chen Zhao Hua; and three independent non-executive directors, namely Mr Chen Ping, Mr Tian Xiao Ren and Mr See Tak Wah.

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