China Huirong Financial : Voluntary Announcement – Expansion of Business into Anhui and Hubei Provinces 2019-01-02

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CHINA HUIRONG FINANCIAL HOLDINGS LIMITED 中 國 匯 融 金 融 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1290)

VOLUNTARY ANNOUNCEMENT

EXPANSION OF BUSINESS INTO ANHUI AND HUBEI PROVINCES

This announcement is made by China Huirong Financial Holdings Limited (the ''Company'', together with its subsidiaries, the ''Group'') on a voluntary basis to inform the shareholders of the Company and potential investors of the latest business development of the Group.

BACKGROUND

The Group is dedicated to provide diversified financing services including secured loans, credit loans, on-line P2P lending business finance platform to its customers and to engage in investment business.

The Group operates in Suzhou and the four county-level cities that are governed by the Suzhou city government, or the Greater Suzhou Area, which is the most economically advanced region in Jiangsu Province. The Group has expanded its business into Sichuan Province by establishing a branch in Chengdu.

EXPANSION OF BUSINESS INTO ANHUI AND HUBEI PROVINCES

On 31 July 2018, Suzhou Wuzhong Pawnshop Co., Ltd. (''Wuzhong Pawnshop'' ), a subsidiary of the Company, established a branch in Hefei with a registered capital of RMB10,000,000 (the ''Hefei Branch''). On 16 October 2018 and 26 December 2018, the Hefei Branch was issued with a Pawn Operations Business License and a Special Industry License by the relevant regulatory authorities in China.

On 1 August 2018, Wuzhong Pawnshop established a branch in Wuhan with a registered capital of RMB10,000,000 (the ''Wuhan Branch''). On 31 October 2018 and 10 December 2018, the Wuhan Branch was issued with a Pawn Operations Business License and a Special Industry License by the relevant regulatory authorities in China.

With the Heifei Branch and Wuhan Branch obtaining the aforesaid requisite licenses, the Group will launch and expand its business in the provision of short-term loans secured by collateral, also referred to as ''pawn loans'', to customers based in Anhui and Hubei Provinces. The Company is of the view that the expansion of the Group's business into Anhui and Hubei Provinces, together with the expansion into Sichuan Province, represents the Company's transition from a regional provider of financing services in Suzhou to a national provider of financing services.

By Order of the Board

China Huirong Financial Holdings Limited

WU Min

Chairman

Suzhou China, 2 January 2019

As at the date of this announcement, the executive directors of the Company are Mr. Wu Min and Mr. Zhang Changsong, the non-executive directors of the Company are Mr. Zhuo You, Mr. Zhang Cheng, Mr. Ling Xiaoming and Ms. Zhang Shu and the independent non-executive directors of the Company are Mr. Zhang Huaqiao, Mr. Feng Ke and Mr. Tse Yat Hong.