Honghua : INSIDE INFORMATION-LITIGATION PROGRESS

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.

Honghua Group Limited

宏華集團有限公司

(a company incorporated in the Cayman Islands with limited liability)

(Stock code: 196)

INSIDE INFORMATION

LITIGATION PROGRESS

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

Reference is made to the announcement of the Company dated 11 November 2019 ("Such Announcement") in relation to the litigation progress. Unless specified otherwise, capitalised terms used in this announcement shall have the same meanings as those used in Such Announcement.

Honghua China and Honghua Offshore have filed an appeal to the Shanghai Higher People's Court against the Judgment made by the Court.

The Company will make further announcement on the significant development of the abovementioned litigation as and when appropriate.

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

On behalf of the Board

Honghua Group Limited

Jin Liliang

Chairman

PRC, 25 November 2019

As at the date of this announcement, the executive directors of the Company are Mr. Jin Liliang (Chairman), Mr. Zhang Mi and Mr. Ren Jie, the non-executive directors of the Company are Mr. Han Guangrong and Mr. Chen Wenle, and the independent non-executive directors of the Company are Mr. Liu Xiaofeng, Mr. Chen Guoming, Ms. Su Mei, Mr. Poon Chiu Kwok, Mr. Chang Qing and Mr. Wei Bin.