Qinhuangdao Port : ANNOUNCEMENT ON LITIGATION - LATEST DEVELOPMENT

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秦 皇 島 港 股 份 有 限 公 司

QINHUANGDAO PORT CO., LTD.*

(a joint stock limited liability company incorporated in the People's Republic of China)

(Stock Code: 3369)

ANNOUNCEMENT ON LITIGATION - LATEST DEVELOPMENT

This announcement is made by Qinhuangdao Port Co., Ltd. (the "Company") pursuant to Rule

13.09 of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the Inside Information Provisions (the "Inside Information Provisions") (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), with reference to Rule 13.10B of the Listing Rules.

References are made to the announcement on litigation of the Company dated 31 January 2018 ("Announcement I"), the announcement on litigation - latest development dated 29 June 2018 ("Announcement II"), the announcement on litigation - latest development dated 18 September 2018 ("Announcement III"), the announcement on litigation - latest development dated 18 October 2018 ("Announcement IV"), and the announcement on litigation - latest development dated 3 January 2020 ("Announcement V") (collectively, the "Announcements"). Capitalised terms used herein shall have the same meanings as those defined in the Announcements unless the context otherwise requires.

1. BASIC INFORMATION ON THE LITIGATION
   China Construction Sixth Engineering Division Corp. Ltd. ("China Construction Sixth Engineering Division") filed a litigation with the Intermediate People's Court of Cangzhou City, Hebei Province in respect of its dispute with Cangzhou Bohai Port over a construction contract. For specific details of the litigation, please refer to Announcement I.
   On 28 June 2018, Cangzhou Bohai Port received a civil judgment ((2018) Ji 09 Min Chu No. 91) from the Intermediate People's Court of Cangzhou City, Hebei Province, pursuant to which China Construction Sixth Engineering Division's claim had been rejected by the Intermediate People's Court of Cangzhou City, Hebei Province with proceedings acceptance fee to be borne by the plaintiff, i.e. China Construction Sixth Engineering Division. For specific details of the judgment, please refer to Announcement II.
   On 14 September 2018, Cangzhou Bohai Port received a subpoena [Case No.: (2018) Ji Min Zhong No. 869] and a statement of appeal from the High People's Court of Hebei Province. For specific details, please refer to Announcement III.

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On 17 October 2018, Cangzhou Bohai Port received a civil ruling ((2018) Ji Min Zhong No.

1. from the High People's Court of Hebei Province, pursuant to which the civil judgement ((2018) Ji Min Chu No. 91) from the Intermediate People's Court of Cangzhou City had been revoked by the High People's Court of Hebei Province with the case remanded to the Intermediate People's Court of Cangzhou City for retrial. For specific details, please refer to Announcement IV.

On 2 January 2020, Cangzhou Bohai Port received the civil judgment ((2018) Ji 09 Min Chu No. 395) from the Intermediate People's Court of Cangzhou City, Hebei Province. For specific details of the judgment, please refer to Announcement V.

On 14 January 2020, Cangzhou Bohai Port refused to accept the first instance judgment and filed an appeal to the High People's Court of Hebei Province.

1. DEVELOPMENT OF THE LITIGATION
   On 14 September 2020, Cangzhou Bohai Port received the civil judgment ((2020) Ji Min Zhong No. 393) from the High People's Court of Hebei Province, pursuant to which:
2. 1. The civil judgment ((2018) Ji 09 Min Chu No. 395) issued by the Intermediate People's Court of Cangzhou City was revoked;
   2. Cangzhou Bohai Port is to make a total payment of the construction fee of RMB10,432,615.73 to China Construction Sixth Engineering Division;
   3. Calculated based on the construction fee of RMB10,432,615.73 in arrears for a period from 1 December 2010 to 19 August 2019 at an interest rate published by the People's Bank of China for similar loans in the same period, and for a period from 20 August 2019 up to the date of actual settlement at the loan prime rate promulgated by the National Interbank Funding Center, Cangzhou Bohai Port is to make a payment for 75% of the loss of capital occupation to China Construction Sixth Engineering Division;
   4. Other claims made by China Construction Sixth Engineering Division were dismissed.

If the payment obligation is not fulfilled within the period specified in the judgment, the interest on the debt for the period of delay in performance shall be doubled in accordance with the provisions of Article 253 of the Civil Procedure Law of the People's Republic of China.

Of the proceedings acceptance fee for the first instance of RMB289,791 and the property preservation fee of RMB5,000, RMB200,423 shall be borne by China Construction Sixth Engineering Division, and RMB94,368 by Cangzhou Bohai Port. Of the proceedings acceptance fee for the second instance of RMB77,447.75, RMB5,038.75 shall be borne by China Construction Sixth Engineering Division, and RMB72,409 by Cangzhou Bohai Port.

This judgement shall be the final judgment.

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1. IMPACT OF THE LITIGATION OF THIS ANNOUNCEMENT ON THE CURRENT OR SUBSEQUENT PROFITS OF THE COMPANY
   The Company made a provision of RMB33.86 million to the estimated liability of the litigation in 2017. Pursuant to the second instance judgment, the Company will make a reversal on provision to the estimated liability, and recognize an actual loss of approximately RMB15.02 million according to the judgment (details are subject to the periodic report disclosed by the Company).
   Investors are advised to pay attention to the announcement of the Company and remain vigilant against investment risks.

By order of the Board

Qinhuangdao Port Co., Ltd.*

CAO Ziyu

Chairman

Qinhuangdao, Hebei Province, the PRC

15 September 2020

As at the date of this announcement, the executive directors of the Company are CAO Ziyu, YANG Wensheng and MA Xiping; the non-executive directors of the Company are LIU Guanghai, LI Jianping and XIAO Xiang; and the independent non-executive directors of the Company are ZANG Xiuqing, HOU Shujun, CHEN Ruihua and XIAO Zuhe.

• For identification purpose only

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