CEFC Hong Kong Financial Investment : INSIDE INFORMATION ANNOUNCEMENT AND ANNOUNCEMENT PURSUANT TO RULE 3.7 OF THE TAKEOVERS CODE UPDATE ON THE WINDING UP PETITION AGAINST CONTROLLING SHAREHOLDER

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.

CEFC Hong Kong Financial Investment Company Limited

香 港 華 信 金 融 投 資 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 1520)

INSIDE INFORMATION ANNOUNCEMENT

AND

ANNOUNCEMENT PURSUANT TO RULE 3.7 OF THE TAKEOVERS CODE

UPDATE ON THE WINDING UP PETITION AGAINST CONTROLLING

SHAREHOLDER

This announcement is made by CEFC Hong Kong Financial Investment Company Limited (the "Company", together with its subsidiaries, the "Group") under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "Inside Information Provisions"), pursuant to Rule 13.09 and Rule 13.25(1)(b) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and Rule 3.7 of The Codes on Takeovers and Mergers and Share Buy-backs (the "Takeovers Code").

Reference is made to the Company's announcement dated 15 June 2020 (the "Announcement") relating to the winding up petition made by the Petitioner. Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

THE PETITION

The Company was informed that the Petition had been heard at the Law Courts, George Town, Grand Cayman (the "Grand Court"), on 10 August 2020 at 9:00 a.m. (Cayman Islands time) and that the Grand Court had ordered, among other things, the winding up of the Controlling Shareholder and the appointment of Mr. Jess Shakespeare of PwC Corporate Finance & Recovery (Cayman) Limited, Mr. Yat Kit Jong and Mr. Man Chun So, both of PricewaterhouseCoopers Limited, as the joint official liquidators of the Controlling Shareholder (the "Liquidators"). The

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Liquidators shall have the powers, including but not limited to, taking possession of, collecting and getting in the property of the Controlling Shareholder and selling any of the property of the Controlling Shareholder by public auction or private contract with power to transfer the whole of it to any person or to sell the same in parcels.

As at the date of this announcement, the Controlling Shareholder holds 860,120,000 shares of the Company (the "Shares") (the "Target Shares"), representing approximately 50.89% of the total issued share capital of the Company. As mentioned above, the Liquidators have the power to dispose of any property of the Controlling Shareholder which includes the Target Shares. As a result, the appointment of the Liquidators may result in the sale of the Target Shares, which in turn may trigger a mandatory general offer under the Takeovers Code should any purchaser(s) and parties acting in concert with it/them acquire 30% or more of the voting rights of the Company.

SECURITIES OF THE COMPANY

As at the date of this announcement, the relevant securities of the Company comprise 1,690,000,000 Shares. Save for the aforesaid, the Company has no other relevant securities (as defined in Note 4 to Rule 22 of the Takeovers Code) as at the date hereof.

MONTHLY UPDATE

In accordance with Rule 3.7 of the Takeovers Code, monthly announcement(s) will be made until announcement of firm intention to make an offer under Rule 3.5 of the Takeovers Code or of a decision not to proceed with an offer is made. Further announcement(s) will be made by the Company as and when appropriate or required in accordance with the Listing Rules and the Takeovers Code (as the case may be).

DEALING DISCLOSURE

For the purpose of the Takeovers Code, the offer period commences from the date of this announcement, being 12 August 2020. In accordance with Rule 3.8 of the Takeovers Code, respective associates of the Company (as defined in the Takeovers Code, including among others, shareholders of the Company having interests of 5% or more in the relevant securities (as defined in Note 4 to Rule 22 of the Takeovers Code) of the Company) and any potential purchaser of the Target Shares are hereby reminded to disclose their dealings in the securities of the Company pursuant to the requirements of the Takeovers Code.

RESPONSIBILITIES OF STOCKBROKERS, BANKS AND OTHER INTERMEDIARIES

In accordance with Rule 3.8 of the Takeovers Code, reproduced below is the full text of Note 11 to Rule 22 of the Takeovers Code:

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"Stockbrokers, banks and others who deal in relevant securities on behalf of clients have a general duty to ensure, so far as they are able, that those clients are aware of the disclosure obligations attaching to associates of an offeror or the offeree company and other persons under Rule 22 and that those clients are willing to comply with them. Principal traders and dealers who deal directly with investors should, in appropriate cases, likewise draw attention to the relevant Rules. However, this does not apply when the total value of dealings (excluding stamp duty and commission) in any relevant security undertaken for a client during any 7 day period is less than $1 million.

This dispensation does not alter the obligation of principals, associates and other persons themselves to initiate disclosure of their own dealings, whatever total value is involved.

Intermediaries are expected to co-operate with the Executive in its dealings enquiries. Therefore, those who deal in relevant securities should appreciate that stockbrokers and other intermediaries will supply the Executive with relevant information as to those dealings, including identities of clients, as part of that co-operation."

Warnings: There is no assurance that the appointment of Liquidators will result in a change of control and lead to a general offer under Rule 26.1 of Takeovers Code. Shareholders and potential investors of the Company should exercise caution when dealing in the securities of the Company, and if they are in any doubt about their position, they should consult their professional adviser(s).

By order of the Board

CEFC Hong Kong Financial Investment Company Limited

Guo Lin

Chairman and Executive Director

Hong Kong, 12 August 2020

As at the date of this announcement, the executive directors of the Company are Mr. Guo Lin, Mr. Jiang Mingsheng, Mr. Jiang Tianqing, Ms. Tin Yat Yu Carol and Mr. Cheung Ka Lung; and the independent non executive directors of the Company are Mr. Lyu Hongbing, Mr. Tang Shu Pui Simon, Mr. Hon Ming Sang and Professor Wu Fei.

The directors of the Company jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statements in this announcement misleading.

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