Central Development Holdings Limited — Capital/Financing Update 2017

Feb 3, 2017

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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CHINA RESOURCES AND TRANSPORTATION GROUP LIMITED 中國資源交通集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 269)

UPDATE ON BANK BORROWINGS

Reference is made to the interim report (the “ Interim Report ”) of China Resources and Transportation Group Limited (the “ Company ”) for the six months ended 30 September 2016. The board of directors of the Company wishes to provide an update to the shareholders and potential investors of the Company in relation to the Company’s outstanding bank borrowings.

Demand notices from a commercial bank

On 27 January 2017, the Company received two demand notices both dated 23 January 2017 and addressed to the Company and Guangdong Jinjing Energy Company Limited* (廣東金晶 能源股份有限公司) (“ Jinjing ”), a wholly-owned subsidiary of the Company, respectively, from a commercial bank in the People's Republic of China (the “ Bank ”).

On 2 January 2017 and 9 January 2017, certain bank borrowings of Jinjing in the sum of RMB 60.02 million have fallen due. Jinjing is unable to pay the said amount by the due date and resulted in the default in repayment of bank borrowings. The above defaults triggered cross-default provisions in other bank borrowings with the Bank. As a result, the Bank issued a demand notice to Jinjing, claiming for the immediate repayment by Jinjing of an aggregate sum of outstanding principal of RMB 145.62 million, interest of approximately RMB 0.54 million accrued up to 23 January 2017, being the total amount of the outstanding principal and accrued interest for all the outstanding bank borrowings with the Bank where Jinjing acted as the

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borrower, at no later than 2 February 2017.

The Bank also issued a demand notice to the Company, claiming for the immediate repayment by the Company for the aforesaid sums, as borrowed and owed by Jinjing where the Company acted as guarantor, at no later than 3 February 2017.

In light of the above, the Company has been negotiating with the Bank in respect of the repayment of the aforesaid sums with a view to reach a consensus on repayment proposal.

All the aforesaid bank borrowings with the Bank have been recognised as current liabilities in the Interim Report and therefore the receipt of the demand notices will not have any material impact on the consolidated financial statements of the Group. Further announcement(s) relating to the demand notices will be made by the Company as and when appropriate.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares and other securities of the Company.

By order of the Board China Resources and Transportation Group Limited Cao Zhong Chairman

Hong Kong, 3 February 2017

As at the date of this announcement, the Board comprises six executive Directors, namely Messrs Cao Zhong, Fung Tsun Pong, Duan Jingquan, Tsang Kam Ching, David, Gao Zhiping and Jiang Tao; a non-executive Director namely Mr. Suo Suo Stephen; and four independent non-executive Directors, namely Messrs Yip Tak On, Jing Baoli, Bao Liang Ming and Xue Baozhong.

* For identification purpose only

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