3602678-m01annc

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

Ko Yo Chemical (Group) Limited

玖 源 化 工（集 團）有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 00827) Clarification Announcement

Reference is made to the announcements (the "Announcements") of Ko Yo Chemical (Group) Limited (the "Company", together with its subsidiaries, the "Group") dated 15 and 23 December 2015 and annual report of the Company for the financial year ended 31 December 2015 published by the Company on the websites of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the Company on 6 April 2016 (the "Annual Report").

Unless otherwise defined, capitalized terms used in this announcement shall have the same meanings as defined in the Announcements and Annual Report.

The board of directors (the "Board") of the Company would like to provide information on the use of proceeds regarding fund raising from the Convertible Bonds. The proceeds from the Convertible Bonds were HK$45,000,000, and with amount of HK$675,000 had been paid to the Placing Agent as commission and the remaining amount of HK$44,325,000 had been used as general working capital of the Group. None of the proceeds had been used for mergers and acquisitions as mentioned in the Announcements.

Hong Kong, 12 July 2016

By Order of the Board

Ko Yo Chemical (Group) Limited Li Wei Ruo

Chairman

As at the date of this announcement, the board of directors comprises six executive directors, being Mr. Li Weiruo, Mr. Yuan Bai, Ms Chi Chuan, Ms Man Au Vivian, Mr. Li Feng and Mr. Li Ciping, one non-executive director being Mr. Zhang Fubo and three independent non-executive directors being, Mr. Hu Xiaoping, Mr. Woo Che-Wor, Alex and Mr. Sun Tongchuan.

Ko Yo Chemical (Group) Ltd. published this content on 12 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 July 2016 14:23:05 UTC.

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