CIFI : SUPPLEMENTAL ANNOUNCEMENT - ADOPTION OF SHARE AWARD SCHEME

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CIFI Holdings (Group) Co. Ltd.

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(Incorporated in the Cayman Islands with limited liability)

(Stock code: 00884)

SUPPLEMENTAL ANNOUNCEMENT ADOPTION OF SHARE AWARD SCHEME

Reference was made to the announcement of the Company dated 18 December 2017 (the "Announcement") regarding adoption of the share award scheme (the "Scheme"). Unless otherwise stated, terms used in this announcement shall have the same meaning as those used in the Announcement. This announcement is intended to provide Shareholders and investors of the Company with further information on the Scheme.

SHARES AWARDED MAY BE NEW SHARES ISSUED UNDER GENERAL MANDATE OF THE COMPANY

As disclosed in the Announcement, the Shares to be awarded under the Scheme will be purchased by the Trustee from the open market or subscribed from the Company as new Shares out of cash contributed by the Group. The new Shares are intended to be allotted and issued pursuant to the general mandate granted by the Shareholders at the annual general meeting of the Company from time to time.

PROPOSED AWARDS TO CONNECTED PERSON OF THE COMPANY

Any proposed grant of the Awarded Shares to any Selected Participants (being the Eligible Persons selected for the participation in the Scheme) will firstly be reviewed and considered by the remuneration committee of the Company (the "Remuneration Committee"), the majority members of which are independent non-executive Directors with reference to the performance of the Selected Participants, the business development and financial performance of the Group and other relevant factors that the Remuneration Committee may think fit. Where the Remuneration Committee considers the proposed grant appropriate, it will recommend to the Board for its consideration and approval. Directors of the Group, being the Eligible Persons under the Scheme, are connected persons of the Company under the Listing Rules. Any proposed grant of the Awarded Shares to connected person of the Company will be subject to compliance of the Listing Rules and all applicable laws, and, in particular, if the Shares proposed to be awarded to connected person of the Company are the new Shares proposed to be issued and allotted by the Company, such award and relevant issueand allotment of new Shares will be subject to the announcement, reporting and independent shareholder approval requirements under Chapter 14A of the Listing Rules. The relevant connected person and his/her associates (as defined in the Listing Rules), shall abstain from voting on the resolution relating to the relevant proposed grant to be considered and approved at the relevant meetings of the Remuneration Committee and the Board, and where applicable, the relevant meeting of the independent Shareholders. The Trustee is a private trust company incorporated in the British Virgin Islands with limited liability and the registered agent of which is an independent third party holding trust license issued under relevant laws of the British Virgin Islands. The Trustee is not an associate of connected persons of the Company as defined under Rule 14A.12(1)(b) of the Listing Rules. As at the date of this announcement, no Award has been granted under the Scheme. Further announcement will be made by the Company upon the proposed grant of the Awarded Shares.

SCHEME LIMIT

The maximum number of the Shares that may be awarded to all Selected Participants under the Scheme (including both the vested and unvested Awarded Shares) will be no more than 5% of the Company's total number of Shares in issue from time to time throughout the duration of the Scheme and, for the avoidance of doubt, such maximum number is not a limit set for yearly basis but the maximum number of the Shares that may be awarded throughout the duration of the Scheme. Further, any Awards lapsed in accordance with the terms of the Scheme shall not vest on the relevant Vesting Date and would be used for further Awards subject to relevant terms of the Scheme and compliance with the Listing Rules and all applicable laws.

By order of the Board CIFI Holdings (Group) Co. Ltd.

LIN Zhong Chairman

Hong Kong, 29 December 2017

As at the date of this announcement, the Board comprises Mr. LIN Zhong, Mr. LIN Wei, Mr. LIN Feng, Mr. CHEN Dongbiao and Mr. YANG Xin as executive Directors; Mr. ZHOU Yimin as non-executive Director; and Mr. GU Yunchang, Mr. ZHANG Yongyue and Mr. TAN Wee Seng as independent non-executive Directors.