Shenzhou International : VOLUNTARY ANNOUNCEMENT - POTENTIAL IMPACT OF THE 2019 NOVEL CORONAVIRUS ON BUSINESS

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SHENZHOU INTERNATIONAL GROUP HOLDINGS LIMITED

（申 洲 國 際 集 團 控 股 有 限 公 司 *）

(Incorporated in the Cayman Islands with Limited Liability)

(Stock Code: 2313)

VOLUNTARY ANNOUNCEMENT

POTENTIAL IMPACT OF THE 2019 NOVEL

CORONAVIRUS ON BUSINESS

This announcement is made by Shenzhou International Group Holdings Limited (hereinafter referred to as the "Company", together with its subsidiaries, the "Group") on a voluntary basis. The purpose of this announcement is to keep the shareholders of the Company and potential investors informed of the potential impact of the 2019 novel coronavirus (COVID-19) epidemic (the "Epidemic") on the operations of the Group.

Since the outbreak of the Epidemic, a number of provinces and municipalities in the People's Republic of China (the "PRC") have taken various emergency public health measures and other actions to prevent the spread of the Epidemic, including extending the Chinese New Year holiday and restricting the resumption of work prior to 10 February 2020. The Group does not have factories in Hubei Province and Wenzhou city, regions severely affected by the Epidemic.

Following the resumption of operation of the Group's factories in the PRC on 10 February 2020 ("Resumption"), our workers have gradually returned to work. As the number of returned workers has increased, as at 28 February 2020, the Group's actual production capacity has reached approximately 95% of the Group's original normal production capacity. The Group's factories in the PRC have also resumed recruitment of workers. In addition, the supply of raw materials to the Group remains broadly stable.

The Board is of the view that the temporary production halt prior to the Resumption and the production shortfall have had a temporary impact on the Group's overall productivity. The Company is committed to mitigating such adverse impact and will adopt various measures to make up for the production shortfall. The Board does not expect the temporary suspension of the Group's factories in the PRC to significantly affect the Group's ability to deliver its orders. The Company will continue to

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evaluate and assess the impact of the Epidemic on the operations of the Group and will make further announcements as appropriate if necessary.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

Shenzhou International Group Holdings Limited

Ma Jianrong

Chairman

Ningbo, PRC, 28 February 2020

As at the date of this announcement, the five executive directors of the Company are Mr. Ma Jianrong, Mr. Huang Guanlin, Mr. Ma Renhe, Mr. Wang Cunbo and Ms. Chen Zhifen; and the four independent non-executive directors are Mr. Chen Xu, Mr. Jiang Xianpin, Mr. Qiu Weiguo and Mr. Zhang Bingsheng.

* for identification purposes only

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