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 howsoevèr arising from or in reliance upon the whole or any pmt of the contents of this announcement.

FONG'S INDUSTRIES COMPANY LIMITED

iL1§I *-i &0E]*

(Jncorporated in Bermuda witb limited liability) (Stock Code: 641)

ANNOUNCEMENT PURSUANT TO RULE 13.18 OF THE LISTING RULES BANKING FACILITIES WITH COVENANTS RELATING TO SPECIFIC

PERFORMANCE OF THE CONTROLLING SHAREHOLDER

This announcement is made by the Board of Directors (the "Board") of Fong's Industries Company Limited (the "Company'' and together with its subsidiaries, the "Group") in compliance with the disclosure obligations under Rule 13.18 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

The Board mrnounces that on 28 November 2013, Fong's National Engineering Company, Limited (as borrower), an indirect wholly-owned subsidiary of the Company, accepted the banking facilities offered by a bank (as lender) in relation to a new 3-year term loan facility of a principal amount of HK$150,000,000 (the "Term Loan"). The Tenn Loan will be utilised by the Group for the construction cost of buildings and facilities as well as purchase of production equipment in respect of the new Zhongshan factory premises.
Pursuant to the terms and conditions of the Term Loan, tp fs:l2: !111P=jf 0- (China Hi-Tech Group Corporation), the controlling shareholder of the Company, undettakes that it will at ali times maintain an aggregate beneficiai ownership (directly
or indirectly) of not less than 51 per cent. in the issued share capitai of the Company throughout the lift of the Tenn Loan (the "Specific Performance Obligation). As at the
date of this mrnouncement, tp f :72: gm 1=f 0Pj (China Hi-Tech Group
Corporation) beneficially owns approximately 55.80 per cent. ofthe issued share capitai of the Company.

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In accordance with the requirements under Rule 13.21 of the Listing Rules, the Company will make disclosures in its subsequent interim and annual rep01is for so long as circumstances giving rise to the Specific Performance Obligation of the controlling shareholder continue to exist.

On behalf of the Board

Fong's Industries Company Limited

Hc Fcngxian

Chairman

Hong Kong, 29 November 2013

As at the date ofthis announcement, our Chairman ami Executive Director is Ms. He Fengxian; our Vice-Chair man ancl Non-executive Director is Mr. Ye Maoxin; our other Executive Directors are Mr. Ji Xin (Chief Executive Officer), Mr. Wan Wai Yung ancl Mr. Fong Kwok Leung, Kevin; and our Jndependent Non-executive Directors are Mr. Zhou Yucheng, Mr. Ying Wei, Dr. Yuen Ming Fai and Dr. Keung Wing Ching.

* For identification purpose only

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