Changhong Jiahua : PROPOSED DISPOSAL OF PARTIAL SHARES BY THE 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.

Changhong Jiahua Holdings Limited

長 虹 佳 華 控 股 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 3991)

PROPOSED DISPOSAL OF PARTIAL SHARES BY

THE CONTROLLING SHAREHOLDER

This announcement is published by Changhong Jiahua Holdings Limited (the ''Company'') pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules'') and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

On 7 May 2021, the Company has been informed by its controlling shareholder (as defined in the Listing Rules), Sichuan Changhong Electric Co., Ltd. (''Sichuan Changhong''), a company listed on the Shanghai Stock Exchange, that it and its subsidiary Fit Generation Holding Limited (a limited company incorporated in the British Virgin Islands) intend to dispose up to 35,368,000 ordinary shares of the Company (the ''Shares'') and 64,632,000 Shares respectively, totaling up to 100,000,000 Shares (the ''Sales Share(s)''), representing 2.4314% and 4.4431% respectively, and a total of 6.8745%, of the issued share capital of the Company as at the date of this announcement, at the price of HK$0.90 per Sales Share (the ''Disposal''). As at the date of this announcement, Sichuan Changhong directly and indirectly holds a total of 948,368,000 Shares, representing 65.1955% of the issued share capital of the Company.

Subject to the fulfillment of certain conditions, the Disposal is expected to be completed by 2 June 2021. Immediately following the completion of the Disposal, the issued share capital of the Company held by Sichuan Changhong together with its parties acting in concert as at the date of this announcement will be reduced to 58.3210%, while they will still remain as the controlling shareholder of the Company.

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As the Disposal may or may not be proceeded, the Shareholders and potential investors of the Company should exercise caution when dealing in the shares of the Company.

By Order of the Board

Changhong Jiahua Holdings Limited

Zhu Jianqiu

Chairman and Executive Director

Hong Kong, 7 May 2021

As at the date of this announcement, the executive Directors of the Company are Mr. Zhu Jianqiu, Mr. Pan Xiaoyong, Mr. Zhang Xiaolong, Mr. Luo Yongping and the independent non-executive directors are Mr. Jonathan Chan Ming Sun, Mr. Gao Xudong and Mr. Meng Qingbin.

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