Shandong International Trust : ANNOUNCEMENT IN RELATION TO WITHHOLDING TAX IN RESPECT OF 2019 FINAL DIVIDEND CLOSURE OF REGISTER OF HOLDERS OF H SHARES

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Shandong International Trust Co., Ltd.

ʆ؇޲਷ყڦৄٰ΅Ϟࠢʮ̡

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1697)

ANNOUNCEMENT IN RELATION TO WITHHOLDING TAX IN

RESPECT OF 2019 FINAL DIVIDEND

CLOSURE OF REGISTER OF HOLDERS OF H SHARES

Reference is made to the 2019 annual results announcement of Shandong International Trust Co., Ltd. (the "Company") dated 27 March 2020, the 2019 annual report dated 26 April 2020 and the announcement dated 17 June 2020 in respect of the poll results of the 2019 annual general meeting of the Company. The board of directors of the Company (the "Board") wishes to announce further information in relation to the payment of the 2019 final dividend as follows.

2019 FINAL DIVIDEND

The profit distribution plan of the Company for the year ended 31 December 2019 was approved at the 2019 annual general meeting of the Company. The 2019 final dividend of RMB0.055 per share (tax inclusive) ("2019 Final Dividend") payable to the shareholders whose names appear on the register of holders of H shares of the Company (the "H Shareholders") at the close of business on Monday, 29 June 2020 (the "Record Date") will be paid in Hong Kong dollars. For such conversion, Renminbi will be converted into Hong Kong dollars based on the average central parity exchange rate of the five business days preceding the date of the 2019 annual general meeting (i.e. 17 June 2020), as announced by the People's Bank of China. Accordingly, the applicable exchange rate for the purpose of the payment of the 2019 Final Dividend is HK$100 = RMB91.3072. As such, the 2019 Final Dividend to the H Shareholders shall be HK$0.0602 per H share (tax inclusive). Shareholders whose names appear on the registers of members of domestic shares of the Company on Monday, 29 June 2020 will be entitled to receive the 2019 Final Dividend in Renminbi.

In order to determine the H Shareholders who are entitled to receive the 2019 Final Dividend, the Company's register of H Shareholders will be closed from Wednesday, 24 June 2020 to Monday, 29 June 2020, both days inclusive, during which period no transfer of H shares of the Company will be effected. H Shareholders who intend to qualify for receiving the 2019 Final Dividend must submit all the transfer documents accompanied by the relevant H share certificates to the H share registrar of the Company, Computershare Hong Kong Investor Services Limited, at Shops 1712- 1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong for registration no later than 4:30 p.m. on Tuesday, 23 June 2020. The 2019 Final Dividend will be paid on or around 12 August 2020. In the event of any change in the above dates, the Company will make a further announcement.

In addition, the Board hereby advises on the withholding arrangements regarding enterprise income tax and individual income tax for the H Shareholders on 2019 Final Dividend under relevant laws and regulations as follows:

ENTERPRISE INCOME TAX

Pursuant to the "Enterprise Income Tax Law of the People's Republic of China"(ʕ ശɛ͏΍ձ਷Άุה੻೼ج' ) and the "Detailed Rules for the Implementation of the Enterprise Income Tax Law of the People's Republic of China"( ʕശɛ͏΍ձ ਷Άุה੻೼جྼ݄ૢԷ' ) (collectively, the "Enterprise Income Tax Law"), both implemented in 2008, beginning from 1 January 2008, any Chinese domestic enterprise which pays dividend to a non-resident enterprise shareholder (i.e. legal person shareholder) in respect of accounting periods beginning from 1 January 2008 shall withhold and pay enterprise income tax for such shareholder. The withholding and payment obligation lies with the payer. Therefore, the Company is required to withhold 10% enterprise income tax when it distributes the 2019 Final Dividend to non-resident enterprise shareholders of H shares as listed on the Company's register of H Shareholders on the Record Date. In respect of all shareholders whose names appear in the Company's register of H Shareholders as at the Record Date who are not individuals (including HKSCC Nominees Limited, corporate nominees or trustees, and other entities or organisations, which are all considered as non-resident enterprise shareholders), the Company will distribute the 2019 Final Dividend after deducting income tax of 10%. A non-PRC resident enterprise shareholder which is entitled to a preferential tax rate under a tax treaty or an arrangement may, directly or through its entrusted agent or withholding agent, apply to the competent tax authorities for a refund of the excess amount of tax withheld.

If any resident enterprise (as defined in the Enterprise Income Tax Law) listed on the Company's register of H Shareholders which is duly incorporated in the PRC or under the laws of a foreign country (or a region) but with a PRC-based de facto management body, does not desire to have the Company withhold the said 10% enterprise income tax, it shall lodge with the H share registrar of the Company, Computershare Hong Kong Investor Services Limited, copies of their registration document for PRC enterprises ( ʕശɛ͏΍ձ਷Άุ೮াᗇ׼˖΁ ) or equivalent documents issued by the relevant PRC governmental authorities certified by a Hong Kong solicitor or accountant to evidence their place of incorporation or relevant legal documents to evidence that they are PRC incorporated enterprises which are resident enterprises (such term shall have the meaning as defined under the relevant tax rules and regulations of the PRC) at or before 4:30 p.m. on Tuesday, 23 June 2020.

INDIVIDUAL INCOME TAX

Pursuant to the "PRC Individual Income Tax Law"( ʕശɛ͏΍ձ਷ࡈɛה੻ ೼ج' ), the "Implementation Regulations of the PRC Individual Income Tax Law" ( ʕശɛ͏΍ձ਷ࡈɛה੻೼جྼ݄ૢԷ' ), the "Tentative Measures on Withholding and Payment of Individual Income Tax"( ࡈɛה੻೼˾ϔ˾ᖮᅲ Б፫ج' ), the Notice of the State Administration of Taxation on Issues Concerning Taxation and Administration of Individual Income Tax after the Repeal of the Document (Guo Shui Fa [1993] No. 045) ( ਷࢕೼ਕᐼ҅ᗫ׵਷೼೯ [1993]045 ໮˖΁ᄻ˟ܝϞᗫࡈɛה੻೼ᅄ၍ਪᕚٙஷٝ' (Guo Shui Han [2011] No. 348)) and the Notice of the State Administration of Taxation in relation to the Administrative Measures on Preferential Treatment Entitled by Non-residents under Tax Treaties ( ਷࢕೼ਕᐼ҅ᗫ׵೯б"ڢ֢͏ॶ೼ɛԮա೼ϗ՘֛ܙ༾၍ ଣ፬ج•ٙʮѓ' ) (the "Tax Treaties Notice"), other relevant laws and regulations and the relevant rules promulgated by the State Administration of Taxation, the individual income tax of the individual shareholders who hold the Company's H shares and whose names appear on the Company's register of H Shareholders on the Record Date (the "Individual H Shareholders"), upon their receipt of distribution of dividend from the Company, shall be withheld and paid by the Company, as the withholding agent, on behalf of the Individual H Shareholders. However, the Individual H Shareholders may be entitled to certain tax preferential treatments pursuant to the tax treaties between the PRC and the countries in which the Individual H Shareholders are domiciled and the tax arrangements between Mainland China and Hong Kong (Macau). The Company will determine the country of domicile of the Individual H Shareholders based on the registered address as recorded in the Company's register of H Shareholders on the Record Date (i.e. 29 June 2020). Detailed arrangements are as follows:

• • for Individual H Shareholders who are Hong Kong and Macau residents and those whose country of domicile is a country which has entered into a tax treaty with the PRC stipulating a dividend tax rate of 10%, the Company will withhold and pay individual income tax at the rate of 10% on behalf of the Individual H Shareholders. Based on the 2019 Final Dividend of RMB0.055 per share (tax inclusive) and the applicable exchange rate as announced in this announcement, the amount of individual income tax to be withheld and paid by the Company on behalf of the Individual H Shareholders will be RMB0.0055 (approximately HK$0.00602) per share;

• • for Individual H Shareholders whose country of domicile is a country which has entered into a tax treaty with the PRC stipulating a dividend tax rate of less than 10%, the Company will withhold and pay individual income tax at the rate of 10% on behalf of the Individual H Shareholders. Based on the 2019 Final Dividend of RMB0.055 per share (tax inclusive) and the applicable exchange rate as announced in this announcement, the amount of individual income tax to be withheld and paid by the Company on behalf of the Individual H Shareholders will be RMB0.0055 (approximately HK$0.00602) per share. The Company may apply, on behalf of the Individual H Shareholders, for the underlying preferential tax benefits pursuant to the Tax Treaties Notice, and upon examination and approval by competent tax authorities, the excess amount of tax withheld and paid will be refunded;

• • for Individual H Shareholders whose country of domicile is a country which has entered into a tax treaty with the PRC stipulating a dividend tax rate of more than 10% but less than 20%, the Company will withhold and pay individual income tax at the actual tax rate stipulated in the relevant tax treaty; and

• • for Individual H Shareholders whose country of domicile is a country which has entered into a tax treaty with the PRC stipulating a dividend tax rate of 20%, or a country which has not entered into any tax treaties with the PRC, or under any other circumstances, the Company will withhold and pay individual income tax at the rate of 20% on behalf of the Individual H Shareholders. Based on the 2019 Final Dividend of RMB0.055 per share (tax inclusive) and the applicable exchange rate as announced in this announcement, the amount of individual income tax to be withheld and paid by the Company on behalf of the Individual H Shareholders will be RMB0.011 (approximately HK$0.01205) per share.

Investors should read this announcement carefully. The Company will withhold the income tax payable by its H Shareholders strictly in accordance with the relevant laws and requirements of the relevant government departments and adhere strictly to the information set out in the Company's register of H Shareholders on the Record Date. The Company assumes no liability whatsoever in respect of any disputes or losses arising from any delay in, or inaccurate determination of, the status of the shareholders.

Shareholders are recommended to consult their tax advisers regarding PRC, Hong Kong and other tax implications arising from their holding and disposal of H shares of the Company.

By order of the Board

Shandong International Trust Co., Ltd.

WAN Zhong

Chairman

Jinan, the People's Republic of China, 19 June 2020

As at the date of this announcement, the Board comprises Mr. Wan Zhong and Mr. Yue Zengguang as executive directors; Mr. Xiao Hua, Mr. Jin Tongshui and Ms. Wang Bailing as non-executive directors; Mr. Yen Huai-chiang, Mr. Ding Huiping and Ms. Meng Rujing as independent non-executive directors.