Huaxi : Announcements and Notices - INSIDE INFORMATION - UPDATE ON LITIGATION

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HUAXI HOLDINGS COMPANY LIMITED ശᐤછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 01689)

INSIDE INFORMATION - UPDATE ON LITIGATION

This announcement is made by Huaxi Holdings Company Limited (the ''Company'', and together with its subsidiaries, the ''Group'') pursuant to Rule 13.09 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, Laws of Hong Kong). Reference is made to an announcement of the Company dated 28 November 2016 (the ''Previous Announcement''). Unless otherwise specified, capitalised terms used herein shall have the same meanings as those defined in the Previous Announcement.

The Board hereby updates its shareholders and potential investors that by a sealed consent order made by the High Court of the Hong Kong Special Administrative Region on 24 January 2018, it was ordered that (i) the action issued by Ms. To Yuk Fung as Plaintiff (''Ms. To'') against A.F. (PNG) Resources Limited as the 1st Defendant and Mr. Zheng as the 2nd Defendant be discontinued; (ii) Mr. Zheng' s counterclaim against Ms. To be discontinued and (iii) there be no order as to costs for the action as between Ms. To and Mr. Zheng.

For avoidance of doubt, the Company clarifies again that the aforesaid litigation related to Mr. Zheng' s personal investment in the Project thus the litigation has nothing to do with the Company and the Group.

By order of the Board Huaxi Holding Company Limited

Zheng Andy Yi Sheng

Chairman

Hong Kong, 25 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. Lau Kwok Hung, Mr. Fok Po Tin and Mr. Ma Wenming as independent non-executive Directors.