CHYY Development Group Limited — Capital/Financing Update 2017

May 4, 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.

This announcement is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities of the Company.

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8128)

DELAY IN DESPATCH OF CIRCULAR AND REVISED EXPECTED TIMETABLE IN RELATION TO (I) PROPOSED RIGHTS ISSUE OF RIGHTS SHARES AT THE RIGHTS ISSUE PRICE OF HK$0.10 PER RIGHTS SHARE ON THE BASIS OF TWO (2) RIGHTS SHARES FOR EVERY FIVE (5) EXISTING SHARES HELD ON THE RECORD DATE; AND (II) APPLICATION FOR WHITEWASH WAIVER

Reference is made to the announcement of China Ground Source Energy Industry Group Limited (the “ Company ”) dated 12 April 2017 in relation to, among other things, the proposed Rights Issue, the Underwriting Agreement and the Whitewash Waiver (the “ Announcement ”) . Unless otherwise stated, capitalised terms used herein shall bear the same meanings as those defined in the Announcement.

DELAY IN DESPATCH OF CIRCULAR

As disclosed in the Announcement, the circular with notice of EGM is expected to be despatched on Thursday, 27 April 2017. Further, pursuant to Rule 8.2 of the Takeovers Code, the circular (the “ Circular ”) containing, among other matters, further details of (i) the Whitewash Waiver; (ii) a letter of recommendation from the Independent Board Committee to the Independent Shareholders in relation to the Whitewash Waiver; (iii) a letter of advice from the independent financial adviser to the Independent Board Committee and the Independent Shareholders in relation to the Whitewash Waiver; and (iv) a notice of the EGM, is required to be despatched within 21 days from the date of the Announcement i.e. on or before 3 May 2017.

As additional time is required to finalise certain financial information to be included in the Circular, the Company expects to despatch the Circular on or before Friday, 19 May 2017, or such later date as the Executive may approve.

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An application has been made to the Executive for a waiver from strict compliance with Rule 8.2 of the Takeovers Code and to grant a consent for an extension of time for the despatch of the Circular to the Shareholders. The Executive has granted consent to extend the latest time for the despatch of the Circular to Friday, 19 May 2017.

REVISED EXPECTED TIMETABLE

In view of the delay in the despatch of the Circular, the expected timetable of the Rights Issue and the closure of register of members of the Company is expected to be revised as below:

2017

Despatch of circular with notice of EGM . . . . . . . . . . . . . . . . . . . . . . . . . . . . Friday, 19 May Latest time for lodging transfer of shares to qualify for attendance and voting at the EGM . . . . . . . . . . . . . . . . . . . . . 4:30 p.m. on Tuesday, 6 June Closure of register of members to determine the identity of the Shareholders entitled to attend and vote at the EGM (both days inclusive) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wednesday, 7 June to Tuesday, 13 June Expected time of the EGM . . . . . . . . . . . . . . . . . . . . . . . . . . 11:00 a.m. on Tuesday, 13 June Announcement of poll results of the EGM . . . . . . . . . . . . . . . . . . . . . . . . . . Tuesday, 13 June Last day of dealings in the Shares on a cum-rights basis . . . . . . . . . . . . . . Wednesday, 14 June First day of dealing in the Shares on an ex-rights basis . . . . . . . . . . . . . . . . Thursday, 15 June Latest time for lodging transfers of Shares accompanied by the relevant title documents in order to qualify for the Rights Issue . . 4:30 p.m. on Friday, 16 June Closure of register of members to determine the eligibility of the Rights Issue (both days inclusive) . . . . . . . . . . . . . . . . . . . . . . . Monday, 19 June to Friday, 23 June Record Date for the Rights Issue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Friday, 23 June Despatch of the Prospectus Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . Monday, 26 June First day of dealings in nil-paid Rights Shares . . . . . . . . . . . . . . . . . . . . . Wednesday, 28 June

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Latest time for splitting nil-paid Rights Shares . . . . . . . . . . . . . . . . . . . . . . . . . 4:30 p.m. on Friday, 30 June Last day of dealings in nil-paid Rights Shares . . . . . . . . . . . . . . . . . . . . . . Wednesday, 5 July Latest time for payment for and acceptance of the Rights Shares and application for excess Rights Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4:00 p.m. on Monday, 10 July Latest time for the Rights Issue to become unconditional . . . . . . . . . . . . . . . . . . 4:00 p.m. on Tuesday, 11 July Announcement of results of the Rights Issue . . . . . . . . . . . . . . . . . . . . . . . . . Monday, 17 July Refund cheques in respect of wholly or partially unsuccessful applications for excess Rights Shares to be despatched on or before . . . . . . . Tuesday, 18 July Share certificates of the Rights Shares to be posted on or before . . . . . . . . . . . Tuesday, 18 July Dealing in fully-paid Rights Shares commences . . . . . . . . . . . . . . . . . . . . . . . . . 9:00 a.m. on Wednesday, 19 July

All times specified in this announcement refer to Hong Kong local time.

The Company may make adjustment to the expected timetable as set out above if it considers appropriate. Dates or deadlines specified in this announcement for events in the above timetable are indicative only and may be extended or varied by the Company. Any extension or adjustment to the expected timetable as set out above will be published or notified to the Shareholders and the Stock Exchange as and when appropriate.

By order of the Board

CHINA GROUND SOURCE ENERGY INDUSTRY GROUP LIMITED Xu Shengheng

Joint Chairman & Executive Director

Hong Kong, 4 May 2017

As at the date of this announcement, the Board comprises Mr. An Yi, Mr. Xu Shengheng, Ms. Chan Wai Kay, Katherine, Mr. Wang Manquan, Mr. Zang Yiran and Mr. Dai Qi as executive Directors, Mr. Zhao Youmin as non-executive Director, Mr. Jia Wenzeng, Mr. Wu Desheng, Mr. Wu Qiang and Mr. Guo Qingui as independent non-executive Directors.

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This announcement, for which the directors of the Company collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

The Directors jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.

This announcement will remain on the GEM website with the domain name of www.hkgem.com on the “Latest Company Announcement” page for at least 7 days from the date of publication and on the website of the Company at www.cgsenergy.com.hk.

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