China Huirong Financial : ANNOUNCEMENT – PROFIT WARNING 2017-01-27

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CHINA HUIRONG FINANCIAL HOLDINGS LIMITED

中 國 匯 融 金 融 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1290)

ANNOUNCEMENT PROFIT WARNING

This announcement is made by China Huirong Financial Holdings Limited (the ''Company'', together with its subsidiaries, the ''Group'') pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules'') and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board (the ''Board'') of directors (the ''Directors'') of the Company wishes to inform the shareholders of the Company (the ''Shareholders'') and potential investors that based on the currently available preliminary assessment of the unaudited consolidated management accounts of the Company for the year ended 31 December 2016 (the ''Unaudited Management Accounts''),

1. the Board expects to record a significant decrease in revenue by approximately 40 to 50% for the year ended 31 December 2016 as compared to the revenue for the year ended 31 December 2015; and

2. the Board expects to record a significant decrease in profit attributable to equity holders by approximately 50 to 60% for the year ended 31 December 2016 as compared to the profit attributable to equity holders for the year ended 31 December 2015.

The above decrease in the revenue and profit attributable to equity holders, respectively, for the year ended 31 December 2016 as compared to those for the year ended 31 December 2015 was primarily attributed to (i) the decrease in the amount of interest income generated from loans granted to customers as a result of a lower overall interest rates due to market environment; and (ii) a significant increase in net charge of impairment allowance on loans granted to customers by approximately 60% for the year ended 31 December 2016 as compared to the net charge of impairment allowance on loans granted to customers for the year ended 31 December 2015.

As at the date of this announcement, the Company is still in the process of preparing the annual results of the Group for the year ended 31 December 2016 and is not able at this time disclose any further details on the above factors and their impact on the Group's profit attributable to equity holders. The information set out above is only based on a preliminary assessment by the Board on the information currently available to it, including the Unaudited Management Accounts, which have not been finalized and not been independently reviewed by the Company's auditors or the audit committee. Shareholders and potential investors should refer to and review the annual results of the Company for the year ended 31 December 2016, which are expected to be published before the end of March 2017.

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

By order of the Board

CHINA HUIRONG FINANCIAL HOLDINGS LIMITED

Chen Yannan

Chairman

Suzhou, China, 27 January 2017

As at the date of this announcement, the executive directors of the Company are Mr. Chen Yannan, Mr. Wu Min and Mr. Zhang Changsong, the non-executive directors of the Company are Mr. Zhuo You, Mr. Zhang Cheng and Ms. Zhang Shu and the independent non-executive directors of the Company are Mr. Zhang Huaqiao, Mr. Feng Ke and Mr. Tse Yat Hong.