Kingston Financial : 29/01/2018 HIGH CONCENTRATION OF SHAREHOLDING

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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KINGSTON FINANCIAL GROUP LIMITED

(Incorporated in Bermuda with limited liability)

(Stock Code: 01031)

HIGH CONCENTRATION OF SHAREHOLDING

This announcement is made at the request of the Stock Exchange in respect of the concentration of the shareholding of the Company in the hands of a limited number of Shareholders as at 8 January 2018.

In view of the high concentration of shareholding in a small number of shareholders, shareholders and prospective investors should be aware that the price of the shares of the Company (''Shares'') could fluctuate substantially even with a small number of Shares traded, and should exercise extreme caution when dealing in the Shares.

This announcement is made by Kingston Financial Group Limited (the ''Company'' and together with its subsidiaries, the ''Group'') at the request of The Stock Exchange of Hong Kong Limited (the ''Stock Exchange'') in respect of the concentration of the shareholding of the Company in the hands of a limited number of shareholders of the Company (the ''Shareholders'') as at 8 January 2018.

HIGH CONCENTRATION OF SHAREHOLDING

The Company noted that an announcement (the ''SFC Announcement'') has been published by the Securities and Futures Commission (the ''SFC'') on 29 January 2018.

As disclosed in the SFC Announcement, the SFC has recently completed an enquiry into the shareholding of the Company. The SFC's findings suggested that as at 8 January 2018, 19 shareholders held an aggregate of 2,320,899,495 Shares, representing 17.047% of the issued Shares. Such shareholding, together with 10,157,205,895 Shares (representing 74.606% of the issued Shares) controlled by an executive director of the Company, represented 91.653% of the issued Shares as at 8 January 2018. Therefore, only 1,136,375,276 Shares (representing 8.347% of the issued Shares) were held by other shareholders.

As stated in the SFC Announcement, as at 8 January 2018, the shareholding structure of the Company was as follows:

% of total

Number of	number of
Shares held	issued Shares
(Shares)	(%)
Mrs. Chu Yuet Wah (Note 1)	10,157,205,895	74.606
A group of 19 shareholders	2,320,899,495	17.047
Other shareholders	1,136,375,276	8.347
Total	13,614,480,666	100.000

Note 1: Of the 10,157,205,895 Shares, 1,894,699,896 Shares are held by Sure Expert Limited, 15,939,999

Shares are held by Kingston Capital Limited, 6,696,964,000 Shares are held by Active Dynamic Limited, 424,602,000 Shares are held by Choose Right Limited and 1,125,000,000 Shares are held by Better Sino Limited, all of which are controlled by Mrs. Chu Yuet Wah (Executive Director & Chief Executive Officer of the Company).

As stated in the SFC Announcement:

(a) From 14 August 2017 to 30 November 2017, the closing price of the Shares increased by 241.1% from HK$2.82 on 11 August 2017 to HK$9.62 on 30 November 2017.

• (b) On 24 November 2017, the Company announced the interim results for the 6 months ended 30 September 2017, which recorded a net profit of HK$908,887,000, representing an increase of 22.1% from the net profit of HK$744,420,000 for the same period in the previous financial year.

• (c) As at 26 January 2018, price of the Shares closed at HK$8.78, representing an increase of 211.3% from the close of HK$2.82 on 11 August 2017.

The information above is extracted from the SFC Announcement and the Company has not independently verified such information other than (i) the shareholding held by Mrs. Chu Yuet Wah; and (ii) the information set out in paragraphs (a) to (c) above. Please refer to the SFC Announcement for more information.

PUBLIC FLOAT

Based on the information available and to the best knowledge of the Board after making all reasonable enquiries of its connected persons, the Company confirms that not less than 25% of the Company's issued Shares were/are in the hands of the public as at 8 January 2018 and as at the date of this announcement and the Company is able to comply with the public float requirement under the Rules Governing the Listing of Securities on the Stock Exchange.

In view of the high concentration of shareholding in a small number of shareholders, shareholders and prospective investors should be aware that the price of the Shares could fluctuate substantially even with a small number of Shares traded, and should exercise extreme caution when dealing in the Shares.

By order of the board of directors of

Kingston Financial Group Limited

Chu, Nicholas Yuk-yui

Chairman

Hong Kong, 29 January 2018

As at the date of this announcement, the executive directors of the Company are Mr. Chu, Nicholas Yuk-yui (Chairman), Mrs. Chu Yuet Wah (Chief Executive Officer), Mr. Chu, Kingston Chun Ho and Mr. Ho Chi Ho, and the independent non-executive directors of the Company are Dr. Wong Yun Kuen, Mr. Lau Man Tak and Ms. Lo, Miu Sheung Betty.