International Alliance Financial Leasing : INSIDE INFORMATION BUSINESS UPDATE STRATEGIC COOPERATION AGREEMENT

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INTERNATIONAL ALLIANCE FINANCIAL LEASING CO., LTD.

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1563)

INSIDE INFORMATION

BUSINESS UPDATE

STRATEGIC COOPERATION AGREEMENT

This announcement is made by International Alliance Financial Leasing Co., Ltd. (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules (the "Listing Rules") Governing the Listing of Securities 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 (the "Board") of directors (the "Directors") of the Company is pleased to announce that on 19 April 2021 (after trading hours), the Company entered into a strategic cooperation agreement (the "Strategic Cooperation Agreement") with Shandong Yulong Petroleum Co., Ltd.* (山東裕龍石 化有限公司) ("Shandong Yulong"), pursuant to which the Company and Shandong Yulong agreed to act as the strategic cooperation partner of each other in their respective field of business as to establish a strategic cooperation relationship in the People's Republic of China (the "PRC") and overseas market.

Pursuant to the Strategic Cooperation Agreement, the Company and Shandong Yulong agreed to carry out extensive and in-depth cooperation on the fields of equipment procurement, equipment leasing and finance leasing of engineering vehicles or equipment, as well as carriers such as vessels for transport of goods and/or passengers. The Company agreed that during equipment procurement process, the parties thereto may conduct business through the finance leasing business model, and the main mode of cooperation includes sale-leaseback service and direct finance service (the "Possible Transaction").

The Company believes that the entering into of the Strategic Cooperation Agreement will provide valuable opportunities to leverage the respective resources of the Group and Shandong Yulong, which will bring mutual benefits and complementary advantages to both parties, and are in the interests of the Company and its shareholders as a whole.

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INFORMATION OF THE GROUP

The Company is an investment holding company. The Group is principally engaged in the finance leasing and advisory services to customers mainly in the healthcare, aviation and public infrastructure industries.

INFORMATION OF SHANDONG YULONG

Shandong Yulong is a company established in the PRC with limited liability and is principally engaged in the oil refinery and petrochemical production. To the best knowledge, information and

belief of the Directors and after having made all reasonable enquiries, Shandong Yulong is owned as to 71% by Nanshan Group Co., Ltd.（南山集團有限公司）("Nanshan Group"). Nanshan Group is

owned as to 51% by the village member committee of the Nanshan Village, Dongjiang Street, Longkou City, Shandong Province, PRC (龍口市東江街道南山村民委員會) and 49% by Mr. Song

Zuowen. Mr. Song Zuowen is the father-in-law of Ms. Sui Yongqing ("Ms. Sui"), a controlling shareholder of the Company. Also, Ms. Sui is the wife of Mr. Song Jianbo, who is the legal representative, chairman and general manager of Nanshan Group. For the purpose of the connected transaction rules under the Listing Rules, the Directors considered Nanshan Group to be a deemed connected person under Rule 14A.21 of the Listing Rules.

CONTINUING CONNECTED TRANSACTION

References are made to the announcements of the Company dated 23 August 2019, 20 September 2019, 15 October 2019, 15 November 2019, 28 November 2019 and 17 December 2019, as well as the circular of the Company dated 2 December 2019 (the "Circular"). Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as those defined in the Circular.

In the event that the Possible Transaction materializes, it would constitute a continuing connected transaction under the Finance Leasing Framework Agreement which was approved by the shareholders of the Company by way ordinary resolutions at the extraordinary general meeting of the Company on 17 December 2019.

The Company will monitor if the the major terms of the Possible Transaction are consistent with the Finance Leasing Framework Agreement and if the aggregated transaction amounts under the Possible Transaction together with other continuing connected transactions under the Finance Leasing Framework Agreement exceed the relevant Annual Cap.

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The Company will ensure that the transaction amounts will not exceed the relevant Annual Cap, or the Company will take applicable steps in order to comply with the relevant requirements of the Listing Rules.

By order of the Board

International Alliance Financial Leasing Co., Ltd.

Jiao Jianbin

Non-Executive Director

Hong Kong, 19 April 2021

As at the date of this announcement, the executive Directors are Mr. Li Luqiang and Mr. Li Zhixuan; the non-executive Director is Mr. Jiao Jianbin; and the independent non-executive Directors are Mr. Liu Changxiang, Mr. Liu Xuewei and Mr. Jiao Jian.

* For identification purpose only

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