Xingfa Aluminium : INSIDE INFORMATION ADOPTION OF DIVIDEND POLICY

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XINGFA ALUMINIUM HOLDINGS LIMITED ጳ೯቙ุછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 98)

INSIDE INFORMATION ADOPTION OF DIVIDEND POLICY

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

The board of directors ("Board") is pleased to announce that it has approved and adopted a dividend policy on 31 December 2018 ("Dividend Policy") which shall take effect on 1 January 2019.

The Company considers stable and sustainable returns to the shareholders of the Company ("Shareholders") to be the goal. The Dividend Policy aims at enhancing transparency of the Company and facilitating the Shareholders and investors to make informed investment decisions relating to the Company.

THE DIVIDEND POLICY

While the Company intends to declare and pay dividends in the future, the payment and the amount of any dividends will depend on a number of factors, including but not limited to:

• (i) the Group's actual and expected financial performance;

• (ii) the Group's expected working capital requirements, capital expenditure requirements and future expansion plans;

(iii) retained earnings and distributable reserves of the Company and each of the members of the Group;

(iv) the Group's liquidity position;

• (v) the general economic conditions and other internal or external factors that may have an impact on the business or financial performance and position of the Group; and

• (vi) any other factors that the board of directors of the Company ("Board") deems relevant.

Shareholders will be entitled to receive such dividends pro rata according to the amounts paid up or credited as paid up on the shares. The declaration, payment, and amount of dividends will be subject to the Board's discretion.

Dividends may be paid only out of distributable profits as permitted under the relevant laws. There can be no assurance that the Company will be able to declare or distribute any dividend in the amount set out in any of the plans or at all. The Company's dividend distribution record in the past may not be used as a reference or basis to determine the level of dividends that may be declared or paid by the Company in the future.

The Policy will be reviewed from time to time by the Board.

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

By Order of the Board

Xingfa Aluminium Holdings Limited

LIU Libin

Chairman

31 December 2018

As at the date of this announcement, the directors of the Company are as follows:Executive Directors:Non-executive Directors:Mr. LIU Libin (Chairman)

Mr. LIAO Yuqing (Chief Executive Officer) Ms. ZHANG Li (Chief Financial Officer) Mr. LAW Yung Koon

Mr. WANG Zhihua Mr. LUO Jianfeng

Mr. ZUO Manlun Ms. XIE JingyunIndependent non-executive Directors:

Mr. CHEN Mo Mr. HO Kwan Yiu

Mr. LAM Ying Hung, Andy Mr. LIANG Shibin