Chuang China Investments : INSIDE INFORMATION

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.

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INSIDE INFORMATION

This announcement is made by Chuang's China Investments Limited (''Company'') pursuant to Rule 13.09 of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (''Listing Rules'') and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (''Inside Information Provisions'').

Reference is made to the announcements issued by the Company on 9 November 2018, 26 June 2019 and 10 July 2019 (the ''Announcements''), in which the Company received the Complaint from the JV Partner against the Company and the Parties. Unless otherwise defined, terms used in this announcement shall have the same meanings as those defined in the Announcements.

The Company has recently received the judgement from the Supreme Court regarding the Ruling. In the judgement, the Supreme Court accepted the findings that certain documents submitted by the JV Partner were forged and were therefore not acceptable as evidence, thus the JV Partner had not complied with the relevant procedural requirements to file the Complaint. The Supreme Court also considered that under the PRC law, the JV Partner shall first lodge the Complaint to be investigated by the board of directors of the JV (the ''JV Board''), prior to making the Complaint at the People's Court. However, the Supreme Court pointed out that the JV Board comprised five directors, including the JV Partner and the other four are either directors or senior management of the Company, and therefore the Supreme Court is of the opinion that it would be impractical for the JV Board to deal with the Complaint in view of the potential conflict of interests. Based on this reason, the Supreme Court dismissed the Ruling and ordered that the Complaint shall be heard by the Court.

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The Company considered that the allegations set out in the Complaint are fictitious and without ground. The Company strongly criticizes such malicious act of the JV Partner. Based on the legal advice from the PRC Counsel, the claims by the JV Partner were not supported by sufficient facts and/or legal basis. The PRC Counsel advises that the Company and the Parties have sufficient grounds to vigorously contest the Complaint.

As set out in the Company's various interim and annual reports, the Group had made keen effort to renew the business license of the JV that had expired in 2012, which the JV Partner had unreasonably objected. The Group has therefore applied for court approval for the voluntary winding up of the JV. The formal approval from court has been obtained for the voluntary wind-up of the JV. The requisite procedure for the voluntary winding up of the JV will soon be implemented in accordance with the laws of the PRC. As at the date of this announcement, the JV Board comprises Mr. Lee, Mr. Zhuang Xue Nong, Mr. Guo Caihong, Mr. Li Peng and the JV Partner.

The Company will issue further announcement to keep shareholders and potential investors informed of any further significant development on the above matters as and when appropriate in compliance with the Listing Rules and the Inside Information Provisions.

Shareholders of the Company and potential investors should accordingly exercise caution when dealing in the shares of the Company.

By order of the Board of

Chuang's China Investments Limited

Chong Ka Fung

Managing Director

Hong Kong, 30 December 2019

As at the date of this announcement, Mr. Albert Chuang Ka Pun, Miss Ann Li Mee Sum, Mr. Chong Ka Fung, Mr. Sunny Pang Chun Kit, Mr. Geoffrey Chuang Ka Kam and Mr. Neville Charles Kotewall are the Executive Directors of the Company, Mr. Dominic Lai is the Non-Executive Director of the Company, and Mr. Abraham Shek Lai Him, Mr. David Chu Yu Lin, Mr. Andrew Fan Chun Wah, Dr. Eddy Li Sau Hung and Dr. Ng Kit Chong are the Independent Non-Executive Directors of the Company.

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