China Tonghai International Financial : VOLUNTARY ANNOUNCEMENT PROVISION OF FINANCIAL ASSISTANCE - EARLY REPAYMENT OF THE FACILITY BY THE BORROWER

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(Incorporated in Bermuda with limited liability)

(Stock Code: 952)

VOLUNTARY ANNOUNCEMENT

PROVISION OF FINANCIAL ASSISTANCE -

EARLY REPAYMENT OF THE FACILITY BY THE BORROWER

This announcement is made voluntarily by China Tonghai International Financial Limited (the ''Company'').

Reference is made to the announcement and the circular of the Company dated 1 March 2019 and 25 April 2019 respectively in relation to the provision of a Facility in an aggregate amount of HK$294,000,000 by the Lenders to Filled Converge Limited (the ''Borrower'') (the ''Announcement''). The Borrower has fully utilized the Facility on 21 March 2019 and as one of the Lenders, the commitment of China Tonghai Finance under the Facility is HK$166,000,000.

Capitalised terms used in this announcement shall have the same meaning as those defined in the Announcement unless the context requires otherwise.

THE SETTLEMENT

Pursuant to the Facility Agreement, the Borrower shall repay a principal amount of HK$29,400,000 which represents 10% of the principal amount under the Facility (the ''First Repayment'') on the First Repayment Date, being 7 March 2020. The Borrower also undertakes to pay the Agent an additional monetary compensation on the First Repayment Date so that each Lender's internal rate of return for their respective commitments of the Loan shall be 15% (the ''Compensation'').

The Borrower is unable to pay the First Repayment and the Compensation on the First Repayment Date and it remains unpaid as at the date of this announcement (the ''Outstanding Payment'').

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As a result of the Outstanding Payment, on 31 August 2020, the Agent (acting for and on behalf of the Lenders), the Borrower and Mr. ZHANG Zhixiang, being the ultimate beneficial owner of the Borrower and the Personal Guarantor (each a ''Party'' and collectively the ''Parties'') entered into a settlement deed for early repayment of the Facility and accrued interest (the ''Early Repayment''). The Borrower agrees to early repay an outstanding amount of HK$57,090,860 in which HK$28,120,000 is the principal amount of part of the Facility and HK$28,970,860 represents the accrued interest up to 30 June 2020 (the ''First Settlement Repayment Sum'') to the Agent by 5 October 2020 (the ''First Settlement Repayment Date''). The remaining balance of the Facility and accrued interest (the ''Final Settlement Repayment Sum'', together with the ''First Settlement Repayment Sum'', the ''Settlement Repayment Sum'') shall be repaid by the Borrower by 14 November 2020 (the ''Final Settlement Repayment Date''). The accrued interest shall be calculated up to the Final Settlement Repayment Date.

Time is of the essence on the Early Repayment of the Facility. Other than the Early Repayment of the Settlement Repayment Sum on the First Settlement Repayment Date and the Final Settlement Repayment Date, all other terms of the Facility Agreement remain effective and unchanged.

Upon the Early Repayment of the Settlement Repayment Sum by the Borrower, China Tonghai Finance shall be able to recover its Commitment under the Facility Agreement before the Repayment Date.

By Order of the Board

China Tonghai International Financial Limited

Han Xiaosheng

Chairman

Hong Kong, 31 August 2020

As at the date of this announcement, the Board of the Company comprises:

Executive Directors:	Independent Non-executive Directors:
Mr. HAN Xiaosheng (Chairman)	Mr. Roy LO Wa Kei
Mr. ZHANG Bo (Deputy Chairman)	Mr. KONG Aiguo
Mr. ZHANG Xifang	Mr. LIU Jipeng
Mr. FENG Henian	Mr. HE Xuehui
Mr. LIU Hongwei	Mr. HUANG Yajun
Mr. Kenneth LAM Kin Hing
Non-executive Directors:
Mr. LIU Bing
Mr. ZHAO Yingwei
Mr. ZHAO Xiaoxia

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