Hailan : CLARIFICATION ANNOUNCEMENT MAJOR TRANSACTION IN RELATION TO THE COOPERATION AGREEMENT

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Hailan Holdings Limited

海 藍 控 股 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock code: 2278)

CLARIFICATION ANNOUNCEMENT

MAJOR TRANSACTION

IN RELATION TO

THE COOPERATION AGREEMENT

Reference is made to the announcement of Hailan Holdings Limited (the ''Company'') dated

30 June 2020 (the ''Announcement'') in relation to the Cooperation Agreement. Capitalised terms used herein shall have the same meanings as those defined in the Announcement unless defined otherwise.

The Company wishes to clarify that according to the calculation under Rule 14.15 of the Listing Rules, one of the relevant percentage ratios (as defined under the Listing Rules) in respect of the Cooperation Agreement and the transactions contemplated thereunder is more than 25% but less than 75%, thus the Cooperation Agreement and the transactions contemplated thereunder constitute a major transaction of the Company under the Listing Rules, and shall be subject to the reporting, announcement, circular and Shareholders' approval requirements under Chapter 14 of the Listing Rules.

To the best knowledge, information and belief of the Directors having made all reasonable enquiries, no Shareholder is required to abstain from voting if the Company were to convene a general meeting for the approval of the Cooperation Agreement and the transactions contemplated thereunder. The Company has received a written Shareholders' approval of the Cooperation Agreement and the transactions contemplated thereunder from Zhong Jia (International) Investment Construction Company Limited, which holds approximately 74.78% of the total issued Shares as at the date of the Announcement, in lieu of an approval from the Shareholders at the general meeting of the Company pursuant to Rule 14.44 of the Listing Rules.

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Pursuant to Rule 14.41(a) of the Listing Rules, a circular containing, among other things, further details of the Cooperation Agreement and the transactions contemplated thereunder (the ''Circular'') must be dispatched to the Shareholders within 15 business days after publication of this announcement. As soon as it was reassessed that the Cooperation Agreement and the transactions contemplated thereunder constitute a major transaction instead of a discloseable transaction under Chapter 14 of the Listing Rules, the Company has immediately commenced the preparation of the Circular. Due to the outbreak of the novel coronavirus, additional time is required for the Company to prepare and finalise the information relating to, among other things, the financial information of the Group and the valuation report on the Project Land Parcel for inclusion in the Circular.

On 24 July 2020, the Company applied to the Stock Exchange for a waiver from strict compliance with Rule 14.41(a) of the Listing Rules such that the despatch of the Circular is to be postponed to a date on or before 30 September 2020 (the ''Waiver''). On 29 July 2020, the Stock Exchange has granted the Waiver and the Circular is expected to be despatched on or before 30 September 2020.

Save as disclosed above, the Board confirms that all information in the Announcement remains unchanged.

By order of the Board

Hailan Holdings Limited

Chairperson

Zhou Li

The PRC, 29 July 2020

As at the date of this announcement, the executive Directors are Ms. Zhou Li, Ms. Fan Wenyi, Mr. Chen Zhonghua and Mr. Zhang Yu; and the independent non-executive Directors are Mr. Li Yong, Dr. Zhao Guoqing and Mr. Deng Shaochao.

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