Huaxi : Announcements and Notices - VOLUNTARY ANNOUNCEMENT - ENTERING INTO PROCUREMENT CONTRACT

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.

HUAXI HOLDINGS COMPANY LIMITED ശᐤછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 01689)

VOLUNTARY ANNOUNCEMENT ENTERING INTO PROCUREMENT CONTRACT

This announcement is made pursuant to Rule 13.09(2)(a) 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 (Cap. 571, Laws of Hong Kong).

The Board of Directors (the ''Board'') of Huaxi Holdings Company Limited (the ''Company'') is pleased to announce that Shantou Xinda Colour Printing & Packing Material Company Limited (''Xinda Packing''), an indirect wholly owned subsidiary of the Company, has been notified by a cigarette manufacturer in the Shanghai (''Cigarette Manufacturer'') that Xinda Packing was elected, among several competitors, to enter into the procurement contract with the Cigarette Manufacturer for the year 2018 and 2019. Xinda Packing will be one of the authorised supplier to supply box frame paper and inner from paper in 2018 and 2019.

According to the procurement contract, Xinda Packing will supply box frame paper and inner from paper to Cigarette Manufacture for not less than approximately RMB115 million (equivalent to approximately HK$138 million). During the relevant period, goods will be delivered under various purchase orders and payment within 90 days after acceptance. Entering into new procurement contract will let the Company Xinda maintain a stable income.

There is no renewal clause in the procurement contract and it will expire on 31 December 2019. The Company is then required to submit new tender documents to the Cigarette Manufacturer for new contracts.

Shareholders of the Company and/or potential investors are advised to exercise caution in dealing in the securities of the Company.

By order of the Board Huaxi Holdings Company Limited

Zheng Andy Yi Sheng

Chairman

Hong Kong, 11 January 2018

As at the date of this announcement, the Board comprises Mr. Zheng Andy Yi Sheng and Mr. Zheng Minsheng as executive Directors; and Mr. Ma Wenming, Mr. Lau Kwok Hung and Mr. Fok Po Tin as independent non-executive Directors.