Chinasoft International : SUPPLEMENTAL ANNOUNCEMENT TO THE ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

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CHINASOFT INTERNATIONAL LIMITED

中 軟 國 際 有 限 公 司 *

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 354)

SUPPLEMENTAL ANNOUNCEMENT TO THE

ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

Reference is made to the annual report (the "Annual Report") of Chinasoft International Limited (the "Company") for the year ended 31 December 2018 and published on 30 April 2019. Unless otherwise stated, capitalised terms used herein shall have the same meanings as those defined in the Annual Report.

Reference is made to the paragraphs headed "Fund Raising Activities" of the Annual Report. The Board would like to provide supplementary information to the Annual Report in relation to the unused proceeds from the 2017 CN of approximately HK$557,000,000 intended use for mergers and acquisitions and establishing an M&A fund to upgrade new technological capability and strengthen the ecological construction of the cloud services.

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Intended use of the unused	Allocation	Expected timeline for utilising
proceeds of HK$557,000,000		the remaining unused
		proceeds (Note)
Use for merger and acquisitions	HK$250,000,000	Before 31 December 2019
and establishing an M & A
fund to invest in proprietary
and reliable business, cloud
computing, big data, artificial
intelligent, and related
industries and associate
companies.
Use for merger and acquisitions	HK$307,000,000	Before 31 December 2020
and establishing an M & A
fund to invest in proprietary
and reliable business, cloud
computing, big data, artificial

intelligent, and related industries and associate companies.

Note: The expected timeline for utilising the remaining unused proceeds is based on the best estimation of the future market conditions made by the Group. It will be subject to change based on the current and future development of market conditions.

The supplementary information provided in this announcement does not affect other information contained in the Annual Report and, save as disclosed above, the contents of the Annual Report remains unchanged.

By order of the Board

Chinasoft International Limited

Dr. CHEN Yuhong

Chairman and Chief Executive Officer

Hong Kong, 23 October 2019

As at the date of this announcement, the Board comprises two executive Directors, namely Dr. Chen Yuhong (Chairman and Chief Executive Officer) and Dr. Tang Zhenming, three non-executive Director, namely Dr. Zhang Yaqin, Mr. Gao Liangyu and Mrs. Gavriella Schuster, and three independent non-executive Directors, namely Mr. Zeng Zhijie, Dr. Lai Guanrong and Professor Mo Lai Lan.

• For identification purposes only

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