Changgang Dunxin : Legal Proceedings Against the Company and its PRC Subsidiary

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.

(Provisional Liquidators appointed)

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2229)

LEGAL PROCEEDINGS AGAINST THE COMPANY AND ITS PRC SUBSIDIARY

This announcement is made by Changgang Dunxin Enterprise Company Limited (the "Company") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

On 5 July 2017, the Company received two writs of summons (the "Actions") from 漳州市中級人民 法院 (Zhangzhou City Intermediate People's Court) against the Company, its PRC subsidiary Dunxin Paper Co., Ltd. ("PRC Subsidiary") and other parties including the former chairman Mr Zheng Dunmu. The plaintiff of both Actions, Fujian Zhanglong Trade Group Co., Ltd. is seeking a claim totaling approximately RMB55million against the parties due to breach of two raw material sales contracts by the PRC Subsidiary.

The Company is seeking legal advice as to the appropriate course of action and will keep the shareholders of the Company and the investing public informed of any further material developments in connection with the above Actions by way of further announcement(s) as and when appropriate pursuant to the requirement of the Listing Rules.

SUSPENSION OF TRADING

The Securities and Futures Commission has, under Rule 8(1) of the Securities and Futures (Stock Market Listing) Rules, directed the Stock Exchange of Hong Kong Limited to suspend all dealings in the shares of the Company from 9:00 a.m. on 18 May 2017. The trading in the shares of the Company will remain suspended until further notice.

For and on behalf of

Changgang Dunxin Enterprise Company Limited

(Provisional Liquidators appointed)

Kennic Lai Hang LUI and LAU WU Kwai King Lauren

Joint and Several Provisional Liquidators Acting as agents without personal liability

Hong Kong, 20 July 2017

As at the date of this announcement, the executive directors of the Company are Mr. Zheng Dunqian, Mr. Chen Ruomao, Mr. Yeung Wing Nam, Mr. Wong Sing Chui, Ms. Huang Xiao Wen, Mr. Chiu Muk Hing and Mr. Chan Walter Kai Him; and the independent non-executive directors are Mr. Ye Deshan, Mr. Hu Zhenghui, Mr. Lo Pak Ho, Mr. Fung Chi Tung and Ms. Zhang He.