Fortunet e Commerce : Announcements and Notices - Supplemental Announcement

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.

鑫網易商集團有限公司

(Incorporated in the Cayman Islands with limited liability)

Reference is made to the announcement of Fortunet e-Commerce Group Limited (the "Company") dated 29 November 2016 (the "Announcement") in relation to, among others, (i) the subscription for shares in a joint venture company; and (ii) the cooperation in the development of the business of the joint venture company and its subsidiaries. Capitalised terms used herein shall have the same meaning as those defined in the Announcement unless the context requires otherwise. The Board wishes to disclose further information as follows.

The Board wishes to make further disclosure on the source of funding of Pointsea Holdings in relation to the additional subscription price of RMB99,999,999 payable for the additional shares in the JV Company as follows:

1. Treasure Ease, a non wholly-owned subsidiary of the Company following the initial subscription, will have an issued share capital of approximately RMB80,000,000 upon the completion of (i) the subscription of approximately 50.1% of its share capital by the Company, and (ii) the subscription of approximately 49.9% of its share capital by Chance Talent (the "First JV Formation"). For further details in relation First JV Formation, please refer to the June Announcement and the September Announcement;

2. Pointsea Holdings, a non wholly-owned subsidiary of the Company following the initial subscription, will have an issued share capital of approximately RMB100,000,000 upon completion of (i) the subscription of 80% of its share capital by Treasure Ease (which will be funded by the First JV Formation); and (ii) the subscription of 20% of its share capital by Easylink (the "Second JV Formation"). For further details in relation to the Second JV Formation, please refer to the July Announcement and the August Announcement; and

3. the addition subscription price payable by Pointsea Holdings for the additional shares in the JV Company will be funded by its issued share capital of RMB100,000,000 upon completion of the Second JV Formation.

The capital contribution of RMB99,999,999 payable by Pointsea Holdings and RMB33,333,333 payable by each Investor as contemplated under the Agreement was determined after arm's length negotiations among Pointsea Holdings, Extra Step, and Joy Empire with reference to the capital requirement for developing the future business of the JV Group (the "Capital Requirement"). The Capital Requirement was determined with reference to the set up and operation costs for the formation of the JV Group projected at market rate such as marketing costs and employment costs.

The Board wishes to further disclose that:

1. Extra Step is an investment holding company incorporated in the BVI with limited liability and is a wholly-owned subsidiary of China Mobile (Hong Kong) Group Limited; and

2. Joy Empire is an investment holding company incorporated in the BVI with limited liability and is a wholly-owned subsidiary of Bank of China Group Investment Limited.

By order of the Board

Chairman

Hong Kong, 7 December 2016

As at the date of this announcement, the executive Directors are Mr. Cheng Jerome and Mr. Yuan Weitao; the non-executive Director is Mrs. Guo Yan; and the independent non-executive Directors are Mr. Wong Chi Keung, Mr. Liu Erhfei and Mr. Chan Chi Keung Alan.