Yuhua Energy : Adjustments to the outstanding share options

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

YUHUA ENERGY HOLDINGS LIMITED 裕華能源控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2728)

ADJUSTMENTS TO THE OUTSTANDING SHARE OPTIONS

References are made to (i) the share option scheme (the "Share Option Scheme") of Yuhua Energy Holdings Limited (the "Company") adopted on 25 June 2005; (ii) the circular of the Company dated 22 December 2017 (the "Circular") in relation to, among other things, the Share Subdivision; and (iii) the announcement of the Company dated 16 January 2018 in relation to the poll results of the extraordinary general meeting of the Company. Capitalized terms used in this announcement shall have the same meanings as those defined in the Circular unless otherwise defined herein.

ADJUSTMENTS TO THE OUTSTANDING SHARE OPTIONS

As at the date of this announcement, there were 61,600,000 share options granted under the Share Option Scheme (the ''Share Options'') outstanding entitling the holders thereof to subscribe for an aggregate of 61,600,000 new Shares at an exercise price of HK$1.2825 per Share.

Upon the Share Subdivision becoming effective on 17 January 2018, (i) the exercise price of the outstanding Share Options; and (ii) the number of Subdivided Shares falling to be issued upon exercise of subscription rights attaching to the outstanding Share Options have been adjusted in the following manner as a result of the Share Subdivision:

Immediately before the Share	Immediately after the Share
Subdivision becoming effective	Subdivision becoming effective
Adjusted
number of
Number of	Subdivided
Shares	Shares

exercise of the	Exercise price
Date of grant	Share Options	per Share
19 June 2015	61,600,000	HK$1.2825

to be issued	to be issued	Adjusted
upon full	upon full	exercise price
exercise of the	per Subdivided
Share Options	Share
123,200,000	HK$0.64125

Save for the above adjustments, all other terms and conditions of the outstanding Share Options granted under the Share Option Scheme remain unchanged.

The Company's auditor has confirmed with the Directors in writing that the above adjustments are in compliance with (i) the terms and conditions of the Share Option Scheme; (ii) the requirements set out in Rule 17.03(13) of the Listing Rules; and (iii) the supplementary guideline regarding the adjustments to share options issued by the Stock Exchange on 5 September 2005.

By Order of the Board Yuhua Energy Holdings Limited

Lin Caihuo Chairman

Hong Kong, 16 January 2018

As at the date of this announcement, the Company has two executive Directors, namely Mr. Lin Caihuo (Chairman), and Mr. Wang Enguang, one non-executive Director, namely Mr. Wang ShouLei and three independent non-executive Directors, namely Mr. Liu Yang, Mr. Lum Pak Sum and Ms. Wong Yan Ki, Angel.