Ta Yang : VOLUNTARY ANNOUNCEMENT-BUSINESS UPDATE

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TA YANG GROUP HOLDINGS LIMITED

大洋集團控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1991)

VOLUNTARY ANNOUNCEMENT

BUSINESS UPDATE

This announcement is made by Ta Yang Group Holdings Company Limited (the "Company", together with its subsidiaries, the "Group") to provide the shareholders ("Shareholders") and potential investors of the Company with the latest business developments regarding the Group's silicone mask business.

The board of directors (the "Board") of the Company is pleased to announce that on 21 February 2020, 東莞太洋橡塑製品有限公司 (Dongguan Tai Yang Rubber Plastic Industrial Company Limited*) ("Dongguan Tai Yang"), a wholly-owned subsidiary of the Company, entered into a strategic cooperation framework agreement ("Framework Agreement") with 北京心海公益基金會 (Beijing Xinhai Charitable Foundation*) ("Xinhai Charity"). According to the Framework Agreement, Xinhai Charity agrees to purchase from Dongguan Tai Yang 10 million sets of silicone masks. The term of Framework Agreement is one year, during which Xinhai Charity will place purchase order(s) at Dongguan Tai Yang and will prepay 50% of the purchase price as the deposit and the remaining 50% at delivery for each purchase order.

In response to the outbreak of the Novel Coronavirus, our Group has actively developed the personal protective equipment market and successfully through our research and development launched the silicone masks as one of the innovative products of our Group. The silicone masks sold to Xinhai Charity under the Framework Agreement will be under our own brand. The Group also intends to manufacture and sell silicone masks and other personal protective equipment under our own brand in the future. The silicone masks are recyclable which will reduce the demands for disposable masks in

China and alleviate the supply-and-demand imbalance for face masks in the region. On 21 February 2020, Mr. Li Keqiang (李克強), a Member of the Standing Committee of the Political Bureau of the CPC Central Committee (中共中央政治局常委), Premier of the State Council (國務院總理) and the Head of the Central Leading Group on Responding to the Novel Coronavirus Pneumonia Outbreak (中央應對新冠肺炎疫情 工作領導小組組長) during his visit at Haidian District, Beijing to inspect the condition of the medical preventive measures production supply, in respect of easing the pressure on raw material supply by the research and development of new materials for masks and recyclable protective masks, indicated that this will improve the supply of protective masks and such new development should be speeded up.

Xinhai Charity was established in 2017 and registered with Beijing Municipal Civil Affairs Bureau (北京市民政局). The recent rapid spread of the Novel Coronavirus Pneumonia has led to the supply-and-demand imbalance of protective masks in China, the Company is given to understand from Xinhai Charity that, Xinhai Charity has received from various outbreak prevention organisations (疫情防控機構) in different provinces and cities, including the Guizhou Province Leading Group on Responding to the Novel Coronavirus Pneumonia Outbreak (貴州省應對新型冠狀病毒感染的肺炎 疫情防控領導小組), mandates for masks procurement. To the best information, knowledge and belief of the Directors after having made all reasonable enquiries, Xinhai Charity and its ultimate beneficial owner are independent third parties of the Company and its connected persons.

The Board wishes to emphasize that the actual purchase volume may not be the same as the purchase volume as stated in the Framework Agreement. This shall not be regarded as any forecast or projection of any future profits or financial results of the Group.

Investors and shareholders are advised to exercise caution when dealing in the securities of the Company.

By order of the Board

Ta Yang Group Holdings Limited

Shi Qi

Chairlady and Chief Executive Officer

Chengdu, 25 February 2020

As at the date this announcement, the Board comprises four executive Directors, namely Ms. Shi Qi, Mr. Cheng Hong, Mr. Gao Feng and Mr. Zhao Ang; two non-executive Directors, namely, Mr. Han Lei and Mr. Sze Wai Lun; and three independent non-executive Directors, namely Mr. Lin Bing, Mr. Liu Gang and Ms. Zhang Lijuan.

• for identification purpose only