Baguio Green : Proposed Joint Venture

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BAGUIO GREEN GROUP LIMITED 碧 瑤 綠 色 集 團 有 限 公 司

(Incorporated in Cayman Islands with limited liability)

(Stock Code: 1397)

PROPOSED JOINT VENTURE

This announcement is made by Baguio Green Group Limited (the ''Company'', and together with its subsidiaries, the ''Group'') pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules'') and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The appended press release by Baguio Waste Management and Recycling Ltd (''Baguio'' ,a wholly-owned subsidiary of the Company), Swire Beverages Holdings Limited (''Swire Beverages'') and ALBA Group Asia Limited (''ALBA'') contains information in relation to a proposed joint venture (the ''Proposed JV'') to be formed by Baguio, Swire Beverages and ALBA which may be price sensitive.

As at the date of this announcement, the terms and conditions of the Proposed JV are still being negotiated and no legally binding agreement has been entered into. The Proposed JV, if materialised, may constitute a notifiable transaction for the Company under the Listing Rules. Further announcement(s) will be made by the Company as and when appropriate in compliance with the Listing Rules.

As the Proposed JV may or may not proceed, shareholders and investors are reminded to exercise caution when dealing in the shares of the Company.

By order of the Board of Baguio Green Group Limited

Ng Wing Hong

Chairman

Hong Kong, 21 January 2019

As at the date of this announcement, the board of directors of the Company comprises Mr. Ng Wing Hong, Ms. Ng Yuk Kwan Phyllis, Mr. Ng Wing Chuen, Ms. Leung Shuk Ping, Ms. Chan Shuk Kuen and Ms. Cheung Siu Chun as executive directors of the Company and Mr. Sin Ho Chiu, Dr. Law Ka Hung and Mr. Lau Chi Yin Thomas as independent non-executive directors of the Company.

For Immediate Release

Targeted Joint Venture to Establish Hong Kong's First Dedicated PET and HDPE Recycling Facility

* The architectural rendering is proposed and conceptual only, which is subject to revisions and other changes.

ALBA Group Asia Limited (ALBA), Baguio Waste Management & Recycling Limited (Baguio) and Swire Beverages Holdings Limited (Swire Beverages), intend to form a joint venture (JV) to operate a state-of-the-art recycling facility for plastic waste in Hong Kong. The facility is expected to be able to process polyethylene terephthalate (PET) and high-density polyethylene (HDPE). The mechanical recycling facility is intended to be built on T6, a plot within the EcoPark which has been awarded to Baguio as tenant under a tender by Environmental Protection Department in late 2017.

The JV will benefit from the strengths of Baguio's domestic collection network in Hong Kong, ALBA's recycling technology expertise and Swire Beverages' strength in the domestic beverages market.

The facility is expected to commence operations in the third quarter of 2020. The facility is planned to be able to process the entire domestic volume of post-consumer beverage packaging (PET) combined with used personal care bottles (HDPE), which is collectable in the foreseeable future.

The facility will consist of a common near infra-red sorting facility and two production lines, one for food grade PET flake, the other for HDPE pellets.

The facility is intended to be LEED Gold certified, and to be designed using the latest waste water management, solar water and photovoltaic power capture techniques. It will have a viewing gallery to enable tours to be undertaken and to explain how plastic waste which would normally go to landfill can be converted into valuable raw materials to be used in the manufacturing sector.

Swire Properties Limited has been appointed as the Project Manager for the design and construction of the facility.

For more information, please contact Iris Cheung [e-mail] Ph: [phone]

About Swire Beverages

Swire Beverages is a division of Swire Pacific Limited, which is a listed company on the Main Board of The Stock Exchange of Hong Kong Limited (stock code: 00019/ 00087). One of the largest Coca-Cola bottlers in the world, Swire Beverages has the exclusive right to manufacture, market and distribute products of The Coca-Cola Company in Hong Kong, Taiwan, 11 provinces and the Shanghai Municipality in Mainland China and an extensive area of the western USA. The relationship with Coca-Cola began in 1965, with the acquisition by Swire of the majority shareholding in the Hong Kong bottling company. Swire Beverages manufactures 60 beverage brands and distributes them to a franchise population of over 720 million people.

About Baguio Green Group

Baguio Green Group Limited is a leading integrated environmental service provider in Hong Kong.

Baguio's services include professional cleaning, integrated pest management, horticulture & landscaping, waste management, collection & recycling. Baguio Green Group Limited is a listed company on the Main Board of The Stock Exchange of Hong Kong Limited (stock code: 1397)

About ALBA Group

The ALBA Group, one of the leading recycling and environmental services companies as well as raw material providers worldwide, operates with its two brands - ALBA and Interseroh - within Germany, Europa and Asia. In 2017 its divisions generated an annual turnover of approx. 1.8 billion Euros and employed a staff of about 7,500 employees. In 2017 alone ALBA Group saved almost 4.1 million tonnes of greenhouse gases compared to primary production and at the same time about 30.2 million tonnes of primary raw materials through its recycling activities.