Hailan : SUPPLEMENTAL ANNOUNCEMENT - DISCLOSEABLE AND CONNECTED TRANSACTION IN RELATION TO THE FORMATION OF JOINT VENTURE AND THE PROJECT 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)

SUPPLEMENTAL ANNOUNCEMENT -

DISCLOSEABLE AND CONNECTED TRANSACTION

IN RELATION TO THE FORMATION OF JOINT VENTURE

AND THE PROJECT AGREEMENT

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

14 August 2020 (the ''Announcement''). Capitalised terms used herein shall have the same meanings as those defined in the Announcement unless defined otherwise.

The Company would like to supplement further information in relation to the Announcement:

FORMATION OF JOINT VENTURE

Hailan Industrial and Zhongtou Zhiye signed the article of association on 16 July 2020 (the ''Articles'') in relation to the formation and management of Jinzhong Real Estate. The ultimate beneficial owner of Zhongtou Zhiye is Mr. Zhong Xunyong (鍾訓勇先生).

LISTING RULES IMPLICATIONS

Pursuant to the Articles, Hailan Industrial will contribute RMB9,800,000 to the registered capital of Jinzhong Real Estate. As the applicable percentage ratios under Chapter 14 of the Listing Rules for the formation of Jinzhong Real Estate are less than 1% and the transaction constituted a connected transaction under the Listing Rules only because it involves Zhongtou Zhiye, a connected person at the subsidiary level, the formation of Jinzhong Real

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Estate constituted a de minimis transaction prior to the entering into the Project Agreement and is exempt from the requirements of reporting, announcement and shareholders' approval under Rule 14A.76(1)(b) of the Listing Rules, and Rule 14A.101 is not applicable.

By order of the Board

Hailan Holdings Limited

Chairperson

Zhou Li

The PRC, 28 August 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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