Chu Kong Ptrlm&Ntrl Gs Stl Pipe Hldg : Announcements and Notices - Charge of Shares by Controlling Shareholder

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CHU KONG PETROLEUM AND NATURAL GAS STEEL PIPE HOLDINGS LIMITED

珠江石油天然氣鋼管控股有限公司

(Incorporated in the Cayman Islands with limited liability) (Stock code: 1938) CHARGE OF SHARES BY CONTROLLING SHAREHOLDER

This announcement is made by Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited (the "Company") pursuant to Rule 13.17 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

The board (the "Board") of directors (the "Directors") of the Company announces that on 25 January 2017, Panyu Chu Kong Steel Pipe Co. Limited, a wholly-owned subsidiary of the Company, renewed the loan agreement with the Export-Import Bank of China (the "Bank") in respect of a term loan facility in an aggregate amount of RMB150 million (the "Facility"). As a security for the Facility requested by the Bank, on the same date, Bournam Profits Limited ("Bournam"), a controlling shareholder of the Company which is wholly owned by Mr. Chen Chang, an executive Director and the chairman of the Company, executed a charge over shares (the "Share Charge") in favour of the Bank, pursuant to which, Bournam shall charge 260,000,000 ordinary shares of the Company (the "Shares") in issue, representing 25.71% of the total number of issued Shares as at the date of this announcement, in favour of the Bank.

To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, the Bank is an independent third party and is not a connected person of the Company.

As at the date of this announcement, Bournam is interested in 701,911,000 Shares, representing approximately 69.42% of the total number of issued Shares, and Mr. Chen Chang is further interested in 2,868,000 Shares, representing approximately 0.28% of the total number of issued Shares.

By order of the Board

Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited Chen Chang

Chairman

Guangdong Province, the PRC, 25 January 2017

As at the date of this announcement, the Board comprises three executive directors, namely Mr. Chen Chang, Ms. Chen Zhao Nian and Ms. Chen Zhao Hua; and three independent non-executive directors, namely Mr. Chen Ping, Mr. See Tak Wah and Mr. Tian Xiao Ren.