PanAsialum : Announcements and Notices - Update on Resumption Progress

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PanAsialum Holdings Company Limited 榮陽實業集團有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 2078)

UPDATE ON RESUMPTION PROGRESS

This announcement is made by PanAsialum Holdings Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rules 13.09 of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

UPDATE ON RESUMPTION PROGRESS

On 19 December 2017, the Company received a letter of even date from the Stock Exchange (the "Letter") notifying the Company, among others, that the Listing Department of the Stock Exchange (the "Listing Department") intends to commence the procedures under Rule 6.10 of the Listing Rules to cancel the Company's listing (the "Listing Department's Decision") on the ground that the Company is no longer suitable for listing. Pursuant to the Letter, the Company will have a period of six months to remedy the matters which the Listing Department considered to have rendered the Company unsuitable for listing, failing which the Listing Department will recommend the Listing Committee to proceed with the cancellation of the Company's listing.

As set out in the Letter, the Listing Department arrived at the Listing Department's Decision having considered certain factors, including: (i) the findings of the forensic review; (ii) the Company's continuing failure to comply with its financial reporting obligations under the Listing Rules; and (iii) the continuing suspension of the Company for a prolonged period.

The board of directors of the Company (the "Board") strongly disagrees with the Listing Department's Decision and the Company has submitted a request for review of the Listing Department's Decision by the Listing Committee pursuant to Listing Rule 2B.06(1) on 9 January 2017.

The Board would like to assure all the shareholders of the Company that the Company has been and will continue to actively fulfil all the resumption conditions imposed by the Stock Exchange and address other concerns of the Stock Exchange. The Company will keep all potential investors and shareholders informed on any updates of the resumption progress by way of publishing further announcement(s) as and when appropriate.

SUSPENSION OF TRADING

Trading in the shares of Company on the Stock Exchange has been suspended from 9:00 a.m. on 17 December 2014. The trading in the shares of the Company will remain suspended until further notice.

By order of the Board of PanAsialum Holdings Company Limited

Cosimo Borrelli Non-Executive Chairman

Hong Kong, 10 January 2018

As at the date of this announcement, the executive directors of the Company are Ms. Shao Liyu, Mr. Zhu Hongtao and Mr. Chan Kai Lun Allan; the non-executive directors of the Company are Mr. Cosimo Borrelli and Ms. Chi Lai Man Jocelyn; and the independent non-executive directors of the Company are Mr. Mar Selwyn, Mr. Chan Kai Nang and Mr. Leung Ka Tin.