Chu Kong Ptrlm&Ntrl Gs Stl Pipe Hldg : PCK Entered Into a Long Term Loan Agreement with ICBC For Panyu GDC Property Project

【FOR IMMEDIATE RELEASE】

Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited Stock Code：1938.HK PCK Entered Into a Long Term Loan Agreement with ICBC For Panyu GDC Property Project

(January 3, 2017 - Hong Kong) Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited (the "Company", together with its subsidiaries hereinafter referred to as the "Group" or "PCK", stock code: 1938), is pleased to announce that 廣東珠鋼投資管理有限公司 (Guangdong Pearl Steel Investment Management Co. Ltd.*) ("Guangdong Pearl Steel"), the Company's wholly-owned subsidiary, and Industrial and Commercial Bank of China ("ICBC") entered into a loan agreement in respect of a 8-year loan of RMB1.5 billion ("Loan"), at the interest rate of the prevailing RMB lending rate published by The People's Bank of China plus 10%. The current RMB commercial base lending rate published by the People's Bank of China as at the date of this announcement is 4.9% per annum.

The purpose of the Loan is mainly to finance property development in Panyu, the PRC.

The Group commenced the sales of units of Golden Dragon City early this year and the total contracted sales up to date amounted to over RMB640 million.

The first phase of the Development will have a permitted construction area (including the underground construction area) of approximately 135,000 m2. The total permitted construction area of the Land (including underground construction area) is approximately 550,000 m2. It is roughly around 25% of the total land area of the plant in Panyu.

The construction of the second phase has already commenced. It will have a permitted construction area (including the underground construction area) of approximately 191,000m2 and accounted for approximately 35% of the total permitted construction area of the Land. The second phase is mainly composed of serviced apartments and shopping centres, and pre-sale is expected to launch in mid-2017.

Mr. Chen Chang, Chairman of the Group, comments, "GDC is a large scale project of integrated commercial complex of offices, shops, serviced apartments and villas. It has huge potentials associated with surrounding business opportunities and convenient transportation, and aims to become the iconic landmark of Panyu. The Loan of ICBC provides a solid funding support to the Group for the continual development of the Golden Dragon City. It is expected the future property sale will provide stable cash flow and revenue to support the development of the Group.

About Chu Kong Steel Pipe

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Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited is the largest manufacturer and Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited is the largest manufacturer and exporter of longitudinal submerged arc welded steel pipes in China. Our steel pipes are mainly used for energy transmission including oil and gas transmission pipelines, deep sea pipelines, city gas networks, and petrochemicals, mining, infrastructure construction, offshore engineering, steel structures and water utilities industries.

The Group's production bases and offices are located in Panyu, Zhuhai, Lianyungang, Jiangyin, Ningbo of China, Indonesia, Saudi Arabia and Dubai, with 9 longitudinal submerged arc-welded ("LSAW"), 4 spiral submerged arc-welded ("SSAW") , 1 clad pipe and 1 electric resistance welded ("ERW") production lines and other lines with a combined annual production capacity of 3,380,000 tonnes

Chu Kong Steel Pipe is the industry pioneer of LSAW steel pipes, strong in research and development with 112 registered utility patents including 8 registered invention patents, and has a long standing international and nationwide track record. The Group is the first and only steel pipe manufacturer in China to produce deep sea welded steel pipes for using under 1,500m water depth. Chu Kong Steel

Pipe is the only welded pipe manufacturer in China that has achieved five national honors and awards, including "Superior Quality Award for Actual Quality of Metallurgical Products", "Gold Cup

Prize for Actual Quality of Metallurgical Products", "National Key New Products", "National- recognized Enterprise Technology Centre", and "High Technology Enterprise". We have an "Academician Workstation", and also the main drafter of the national standard for longitudinal welded steel pipes for transmission.

The Group is developing its Golden Dragon City Fortune Plaza, located at Shiji Town, Panyu, Guangzhou, China, which is an integrated commercial complex of offices, shops, serviced apartments and villas.

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