Ajisen China : FURTHER UPDATE ON SUSPECTED MISAPPROPRIATION OF FUNDS OF A SUBSIDIARY OF THE COMPANY

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Ajisen (China) Holdings Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 538)

FURTHER UPDATE ON SUSPECTED MISAPPROPRIATION OF FUNDS OF

A SUBSIDIARY OF THE COMPANY

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

Reference is made to the announcements of the Company dated 14 December 2018, 13 March 2019 and 23 April 2019 (the "Announcements") in relation to suspected misappropriation of funds of a subsidiary of the Company (the "Incident"). Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcements.

The board of directors (the "Board") of the Company hereby announces that on 16 December 2019, the Company has recovered a total of HK$29,049,851.04 from Mr. Lau. Accordingly, the amount recovered will be recognised as other income in the consolidated statement of profit or loss and other comprehensive income of the Company for the year ending 31 December 2019.

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The Company has also engaged an independent consultancy firm to conduct an investigation into the Incident, and to conduct a review of the Company's internal control procedures and systems and make recommendations to the Board to address and rectify the weakness identified, if any. As at the date of this announcement, the investigation and review are still ongoing. The Company expects that the relevant review report will be finalized by end of December 2019.

By Order of the Board

Ajisen (China) Holdings Limited

Poon Wai

Chairman

Hong Kong Special Administrative Region, 19 December 2019

As at the date of this announcement, the Board comprises Ms. Poon Wai, Mr. Poon Ka Man, Jason and Ms. Minna Ng as Executive Directors; Mr. Katsuaki Shigemitsu as Non-executive Director; and Mr. Lo Peter, Mr. Jen Shek Voon and Mr. Wang Jincheng as Independent Non-executive Directors.

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