China Metal Resources Utilization Limited — Capital/Financing Update 2021

Jan 22, 2021

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 METAL RESOURCES UTILIZATION LIMITED 中國金屬資源利用有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1636)

SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO THE ANNUAL PROCUREMENT AGREEMENTS

Reference is made to the announcements of China Metal Resources Utilization Limited (the ‘‘Company’’) dated 15 June 2018, 19 June 2018 and 13 January 2021 (the ‘‘Announcements’’) regarding the signing of annual procurement agreements involving issue of consideration shares under general mandate. Capitalised terms used in this announcement shall have the same meaning as those defined in the Announcements.

The Company wishes to provide potential investors and Shareholders with the following additional information:

The Company would like to clarify that the ‘‘annual supply target’’ as mentioned in the Announcements were maximum amount of copper scrap raw material which a Supplier can supply pursuant to this arrangement whereby Consideration Shares would be allotted in lieu of cash consideration. There was a delay in the original Allotment Date due to a delay in the determination of the quantities of copper scrap raw materials received as adjustments were required to take into account the return of goods during the relevant period. Accordingly, the Company was only able to determine the actual copper scrap raw materials supplied by the end of 2019. Shortly after, both the Company and the Suppliers had undergone significant business disruption during the year 2020 as a result of the COVID-19 pandemic, and the parties as a result prioritised other aspects of their business instead of the Consideration Shares. Accordingly, discussion in respect of the allotment of the Consideration Shares only started between the Company and the Suppliers around November 2020.

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The number of Consideration Shares to be allotted was determined in accordance with the Annual Procurement Agreements, pursuant to which for each ton of copper scrap raw materials supplied by a Supplier, the Company will pay up to RMB3,000 by way of issuance of Consideration Shares at an Issue Price of HK$5 per Consideration Share at an exchange rate of approximately 1 RMB:1.22 HKD. The detailed breakdown of the Consideration Shares issued and the corresponding copper scrap raw materials supplied by the relevant Supplier is as follows:

Name of the SubscriberCorrespondingSupplier(s)Copper scrapraw materialssuppliedAverage unitprice per ton(in tonnes)(RMB)Abundant Peace LimitedWu Jun447.3241,581.18Ample Prosperous LimitedLu Yanliang361.5440,908.57Blissful Treasure HoldingsLimitedZhou Yajun4,762.8440,095.47Eminent Bloom LimitedTang Zhihua5,291.3038,308.15Frontier Global EnterprisesLimitedYang Sisi8,837.3237,646.95Golden Elite Global LimitedLiu Liu6,027.9539,730.65Harmony Success GlobalLimitedShao Yingdon949.8139,255.74Silver Kirin Holdings LimitedGe Jinbiao1,442.8038,917.16Smooth Profit Holdings Limited Yang Shihu274.9435,047.93Summit Year Holdings LimitedZhang Guoyu1,051.0341,603.21Treasure Soar Global LimitedFu Jufang258.7640,636.17Best Discovery HoldingsLimitedYi Bing3,469.0041,605.33Ming Yuan Ventures LimitedChen Guanglun11,484.3138,806.02Goal Run Investments LimitedZheng Zuren1,502.7340,199.45Total	Name of the SubscriberCorrespondingSupplier(s)Copper scrapraw materialssuppliedAverage unitprice per ton(in tonnes)(RMB)Abundant Peace LimitedWu Jun447.3241,581.18Ample Prosperous LimitedLu Yanliang361.5440,908.57Blissful Treasure HoldingsLimitedZhou Yajun4,762.8440,095.47Eminent Bloom LimitedTang Zhihua5,291.3038,308.15Frontier Global EnterprisesLimitedYang Sisi8,837.3237,646.95Golden Elite Global LimitedLiu Liu6,027.9539,730.65Harmony Success GlobalLimitedShao Yingdon949.8139,255.74Silver Kirin Holdings LimitedGe Jinbiao1,442.8038,917.16Smooth Profit Holdings Limited Yang Shihu274.9435,047.93Summit Year Holdings LimitedZhang Guoyu1,051.0341,603.21Treasure Soar Global LimitedFu Jufang258.7640,636.17Best Discovery HoldingsLimitedYi Bing3,469.0041,605.33Ming Yuan Ventures LimitedChen Guanglun11,484.3138,806.02Goal Run Investments LimitedZheng Zuren1,502.7340,199.45Total	Name of the SubscriberCorrespondingSupplier(s)Copper scrapraw materialssuppliedAverage unitprice per ton(in tonnes)(RMB)Abundant Peace LimitedWu Jun447.3241,581.18Ample Prosperous LimitedLu Yanliang361.5440,908.57Blissful Treasure HoldingsLimitedZhou Yajun4,762.8440,095.47Eminent Bloom LimitedTang Zhihua5,291.3038,308.15Frontier Global EnterprisesLimitedYang Sisi8,837.3237,646.95Golden Elite Global LimitedLiu Liu6,027.9539,730.65Harmony Success GlobalLimitedShao Yingdon949.8139,255.74Silver Kirin Holdings LimitedGe Jinbiao1,442.8038,917.16Smooth Profit Holdings Limited Yang Shihu274.9435,047.93Summit Year Holdings LimitedZhang Guoyu1,051.0341,603.21Treasure Soar Global LimitedFu Jufang258.7640,636.17Best Discovery HoldingsLimitedYi Bing3,469.0041,605.33Ming Yuan Ventures LimitedChen Guanglun11,484.3138,806.02Goal Run Investments LimitedZheng Zuren1,502.7340,199.45Total	Number ofConsiderationShares	Number ofConsiderationShares
	ame of the SubscriberSupplier(s)suppli(in tonnbundant Peace LimitedWu Jun447.mple Prosperous LimitedLu Yanliang361.lissful Treasure HoldingsLimitedZhou Yajun4,762.minent Bloom LimitedTang Zhihua5,291.ontier Global EnterprisesLimitedYang Sisi8,837.	edprice per tones)(RMB)3241,581.185440,908.578440,095.473038,308.15	to be issued328,333265,3703,495,9253,883,814
		3237,646.95	6,486,593
			44241
			,,697,1611,059,015201,806771,456189930
	.,.est Discovery HoldingsLimitedYi Bing3,469.0041,605.33ing Yuan Ventures LimitedChen Guanglun11,484.3138,806.02oal Run Investments LimitedZheng Zuren1,502.7340,199.45otal		,2,546,2468,429,4841,103,004
			33,882,652

The Company intends to issue the Consideration Shares as soon as reasonably practicable upon obtaining the listing approvals, but had factored in additional time in the Supplemental Agreements to cater for, amongst others, any potential delay which may arise if the Company’s Hong Kong branch share registrar experiences delay in service due to any precautionary control in respect of the COVID-19 pandemic.

By order of the Board

China Metal Resources Utilization Limited Mr. YU Jianqiu Chairman

Hong Kong, 22 January 2021

As at the date of this announcement, the Board comprises of four executive directors, namely, Mr. Yu Jianqiu (Chairman), Mr. Kwong Wai Sun Wilson, Mr. Huang Weiping and Ms. Zhu Yufen; and three independent non-executive directors, namely, Mr. Lee Ting Bun Denny, Mr. Pan Liansheng and Ms. Ren Ruxian.

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