Central China Securities : ANNOUNCEMENT ON PROGRESS OF REDUCTION OF SHAREHOLDING BY WAY OF CENTRALIZED BIDDING BY SHAREHOLDER

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Central China Securities Co., Ltd.

(a joint stock company incorporated in 2002 in Henan Province, the People's Republic of China with limited liability under the Chinese corporate name "中原証券股份有限公司" and carrying on business in Hong Kong as "中州証券")

(Stock Code: 01375)

ANNOUNCEMENT ON PROGRESS OF

REDUCTION OF SHAREHOLDING BY WAY OF

CENTRALIZED BIDDING BY SHAREHOLDER

Reference is made to the announcement of Central China Securities Co., Ltd. (the "Company") dated 5 January 2021, in relation to the proposed reduction of shareholding

in the Company by Bohai Industrial Investment Fund Management Co., Ltd.* (渤海 產業投資基金管理有限公司) (holding the Company's A shares on behalf of Bohai Industrial Investment Fund* (渤海產業投資基金), "Bohai Company"), a shareholder of

the Company, by way of centralized bidding (the "Proposed Reduction by Centralized Bidding"). Bohai Company planned to reduce its shareholding in the Company by not more than 92,857,694 A shares by way of centralized bidding within 6 months after 15 trading days from 6 January 2021, and the total number of shares to be reduced shall not exceed 1% of the total number of shares of the Company for any 90 consecutive days, and the price for shares involved in the reduction shall be determined based on the market price.

During the period from 27 January 2021 to 26 April 2021, Bohai Company reduced its shareholding in the Company by 46,428,847 A shares by way of centralized bidding, representing 1% of the total number of shares of the Company. The price range for the reduction is between RMB4.42 per share to RMB4.90 per share. Considering the disposal of 7,440,000 A shares of the Company by Bohai Company by way of block trading during the aforementioned reduction period, as of the date of this announcement, Bohai Company held 377,869,704 A shares of the Company (tradable shares not subject to trading moratorium), representing approximately 8.14% of the total number of shares of the Company. On 26 April 2021, the Company received the Notice Letter of the Progress of Shareholding Reduction from Bohai Company, pursuant to which, half of the period for implementation of the Proposed Reduction by Centralized Bidding has passed and half of the number of shares subject to disposal has been disposed. The implementation of the Proposed Reduction by Centralized Bidding has not yet been completed.

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The implementation of the Proposed Reduction by Centralized Bidding will neither have an impact on the corporate governance structure or ongoing operations of the Company, nor result in a change in control of the Company. During the implementation of the Proposed Reduction by Centralized Bidding, Bohai Company will decide on whether and how to implement the Proposed Reduction by Centralized Bidding according to market conditions, share price of the Company and other factors. The Company will pay constant attention to the subsequent implementation of the Proposed Reduction by Centralized Bidding by Bohai Company and fulfill its information disclosure obligation in a timely manner in accordance with relevant requirements.

By order of the Board of

Central China Securities Co., Ltd.

Jian Mingjun

Chairman

Henan, the PRC

26 April 2021

As at the date of this announcement, the Board comprises executive Directors Mr. JIAN Mingjun and Mr. CHANG Junsheng, non-executive Directors Mr. LI Xingjia, Mr. WANG Lixin, Mr. TIAN Shengchun, Mr. ZHANG Xiaoqi and Mr. LU Benson Cheng, and independent non-executive Directors Mr. YUEN Chi Wai, Mr. NING Jincheng, Mr. YU Xugang and Ms. ZHANG Dongming.

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