Yingde Gases : Announcements and Notices - Update on Court Proceedings in the Cayman Islands

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.

盈 德 氣 體 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

This announcement is made by Yingde Gases Group Company 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 12 January 2017 (the "Announcement") in relation to an injunction brought by Bubbly Brooke Holding Company Limited ("BBH") and Baslow Technology Limited ("BTL", together with BBH collectively as the "Plaintiffs") against the Company (the "Proceedings") where the Company has agreed to the Undertaking with the consent of BTL and BBH on 11 January 2017 which would sustain until the Substantive Hearing. Unless stated otherwise, the capitalised terms used herein shall have the same meaning as those defined in the Announcement.

The Company wishes to update the shareholders of the Company that, upon the Plaintiffs' summons submitted on 3 April 2017, the Substantive Hearing was held at 2:30pm on 7 April 2017 (the Cayman Islands time), where:

1. it was declared by the Court that the removal of Mr. Zhongguo Sun as Chairman of the Company, purportedly effected and ratified at board meetings of the Company held on 5 November 2016 and 10 January 2017, respectively, was null, void and of no effect; and

2. it was ordered that:

3. the Proceedings be discontinued; and

4. the Plaintiffs' costs of an occasioned by the Proceedings (including all summonses filed in the Proceedings) be paid by the Company on the indemnity basis, such costs to be taxed if not agreed.

Hong Kong, 10 April 2017

By order of the Board

Yingde Gases Group Company Limited

盈德氣體集團有限公司

Zhongguo Sun

Chairman

As at the date of this announcement, the executive directors of the Company are Mr. Zhongguo Sun and Mr. Trevor Raymond Strutt; the non-executive directors of the Company are Mr. Wong Tak-Wai and Mr. Qiu Zhongwei; and the independent non-executive directors of the Company are Mr. Zheng Fuya, Dr. Wang Ching, Mr. Jhi-Ho Mah, Mr. Rawen Zhi Hong Huang, Mr. David Chan and Mr. Deng Xipeng.