Chu Kong Shipping Enterprises : Announcements and Notices - Inside Information - Adoption of Dividend Policy

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(Incorporated in Hong Kong with limited liability)

(Stock Code: 00560)

INSIDE INFORMATION

ADOPTION OF DIVIDEND POLICY

This announcement is made by Chu Kong Shipping Enterprises (Group) Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company (the "Board") is pleased to announce that the Board has approved and adopted a dividend policy (the "Dividend Policy") on 1 January 2019 in order to provide return to the shareholders of the Company (the "Shareholders").

For proposing distribution of dividends to the Shareholders' meeting, the Board will measure the capital needs in future years based on the future capital budget plan of the Company and consider factors such as profitability and financial structure of the Company comprehensively. However, the target dividend to be distributed to the Shareholders in any financial year shall be not less than 30% of the Group's profit attributable to the Shareholders (if any) in that financial year, which is payable wholly in cash or in non-cash benefits or partly in cash and partly in non-cash benefits, subject to: a) the Companies Ordinance (Chapter 622 of the Laws of Hong Kong); b) the Listing Rules; and 3) the Articles of Association of the Company.

The Board may revise the target dividend payout ratio based on the overall operating conditions.

The Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

Chu Kong Shipping Enterprises (Group) Co., Ltd.

Wu Qiang

Managing Director

Hong Kong, 8 January 2019

As at the date of this announcement, the Company's executive directors are Mr. Huang Liezhang, Mr. Wu Qiang, Mr. Chen Jie, Mr. Leng Buli and Mr. Liu Wuwei; non-executive director is Ms. Ye Meihua; and independent non-executive directors are Mr. Chan Kay-cheung, Ms. Yau Lai Man and Mr. Chow Bing Sing.

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