Fabchem China : Incorporation Of Subsidiary

INCORPORATION OF SUBSIDIARY

The Board of Directors (the "Board") of Fabchem China Limited (the "Company" and together with its subsidiaries, the "Group") wishes to announce that the wholly-owned subsidiary of the Company, Shandong Yinguang Technology Co., Ltd ("Yinguang Technology") had incorporated a new wholly-owned subsidiary, Shandong Yinguang Safety Advisory Co., Ltd ( 山 东 银 光 安 全 咨 询 有 限 公 司 ) ("Yinguang Safety Advisory").

Yinguang Safety Advisory is incorporated in the People's Republic of China with a registered capital of RMB 3,000,000. The principal activities of Yinguang Safety Advisory are to provide safety advisory services, safety guidelines advisory services, agent for safety related matters, safety assessment and evaluation, evaluation of major safety risk areas, development and sales of safety related software, information technology and management services, advisory for information technology on safety.

The incorporation of Yinguang Safety Advisory is to better utilise the Group's current capabilities and resources on safety to provide safety advisory services to other corporations. Yinguang Safety Advisory will be funded through internal resources of the Group and is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the Group for the financial year ending 31 March 2020.

None of the Directors, the controlling shareholders of the Company, and their respective associates has any interest, direct or indirect, in the incorporation of Yinguang Safety Advisory (other than through their respective shareholding interests in the Company, if any).

By Order of the Board

Bao Hongwei

Managing Director

14 January 2020