Fortunet e Commerce : Announcements and Notices - Inside Information / Profit Warning

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FORTUNET E-COMMERCE GROUP LIMITED 鑫網易商集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1039)

INSIDE INFORMATION

PROFIT WARNING

This announcement is made by Fortunet e-Commerce Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside

Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Based on the preliminary assessment by the Group's management and the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018, the board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that the Group expects to record a consolidated loss for the six months ended 30 June 2018 as compared to a consolidated profit for the six months ended 30 June 2017. Such expected decline in the financial performance of the Group for the six months ended 30

June 2018 is primarily attributable to, among other things, the one-off profit of approximately RMB141 million from the disposal of Chang Feng Holding (Hong Kong) Limited and its subsidiaries in April 2017, the details of which are set out in the announcements of the Company dated 7 April 2017 and 19 April 2017 and the annual report of the Company for the year ended 31 December 2017.

The information contained in this announcement is only based on the preliminary assessment by the Group's management and the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018, and such information has not been audited or reviewed by the auditors of the Company. Such information is subject to the finalisation of the interim results of the Group for the six months ended 30 June 2018, which is expected to be announced by the end of August 2018.

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

By order of the Board

Fortunet e-Commerce Group Limited

Mr. Cheng Jerome

Chairman

Hong Kong, 17 August 2018

As at the date of this announcement, the executive Directors are Mr. Cheng Jerome and Mr. Yuan Weitao; the non-executive Director is Mrs. Guo Yan; and the independent non-executive Directors are Mr. Wong Chi Keung, Mr. Liu Jialin and Mr. Chan Chi Keung Alan.