China Fortune Investments : QUARTERLY UPDATE ON DEVELOPMENT OF SUSPENSION OF TRADING AND TIMETABLE FOR FULFILLMENT OF RESUMPTION CONDITIONS

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(incorporated in the Cayman Islands with limited liability)

(Stock code: 8116)

QUARTERLY UPDATE ON DEVELOPMENT OF

SUSPENSION OF TRADING

AND

TIMETABLE FOR FULFILLMENT OF

RESUMPTION CONDITIONS

Reference is made to the Company's announcements dated 5 October 2018, 18 October 2018, 14

November 2018, 16 November 2018, 21 December 2018, 24 January 2019, 8 February 2019, 29 March 2019, 8 May 2019 and 15 May 2019 ("Announcements") in relation to the Group's operation of the P2P online platform and loan facilitation services in China (the "P2P Business"), delay in the publication of the 2018 Third Quarterly Results Announcement and 2018 Third Quarterly Report, resumption guidance, appointment of independent investigator, delay in the publication of the 2018 Annual Results Announcement and 2018 Annual Report and delay in the publication of the 2019 First Quarterly Results Announcement and 2019 First Quarterly Report. Terms used herein shall have the same meanings as defined in the Announcements unless otherwise stated.

BUSINESS OPERATION

The Group is principally engaged in retail sales and wholesales of wine products, cigars and tobacco, retail sales and wholesales of golf products, trading of watch and jewelleries, P2P loan facilitation services and money lending business.

As disclosed in the announcement dated 8 February 2019, the operation of the OPCO has ceased entirely following its formal investigation and intervention by the Public Security Bureau of Chengdu.

With respect to the Group's other business segments, based on the management accounts of such segments for the five months ended 31 May 2019, (i) there was a substantial decline in the revenue from the wine and cigar business and golf business as compared with the same period in 2018 which was primarily due to reduced demands from customers, (ii) the watch and jewlleries business recorded a drop in revenue as compared with the same period in 2018 and (iii) the money lending business recorded no revenue during such period.

UPDATE ON RESUMPTION PROGRESS

The Independent Investigator has completed the first stage of investigation in relation to the matters set out in the Company's announcement dated 16 November 2018. The management of the Company and the Investigation Committee have been discussing with the Independent Investigator and reviewing the draft report from the Independent Investigator. It is expected that the finalized draft report will be available before the end of August 2019.

The Internal Control Review by the IC Consultant has been completed. The management of the Company and the Investigation Committee have been discussing with the IC Consultant and reviewing the draft report from the IC Consultant. It is expected that the finalized draft report will be available before the end of August 2019.

The preparation of the third quarterly results announcement and report of the Company for the 9 months ended 30 September 2018, the annual results announcement and annual report for the year end ended 31 December 2018, the first quarterly results announcement and report of the Company for the 3 months ended 31 March 2019 and the interim results announcement and report of the Company for the 6 months ended 30 June 2019 are still on-going and are subject to the findings of the Investigation and the Internal

Control Review.

The following are the expected timeline for the fulfillment of the resumption conditions:

SUSPENSION OF TRADING

At the request of the Company, trading in the shares of the Company on the Stock Exchange has been suspended with effect from 9:00 a.m. on 5 November 2018 and will continue to be suspended until further notice.

By Order of the Board of

CHINA FORTUNE INVESTMENTS (HOLDING) LIMITED

Cheng Chun Tak

Chairman

Hong Kong, 2 August 2019

As at the date of this announcement, the Board comprises three executive Directors, namely, Mr. Cheng Chun Tak (Chairman), Mr. Stephen William Frostick and Ms. Li Ka Ki, one non-executive Director, namely Mr. Huang Shenglan and three independent non-executive Directors, namely Mr. Chang Jun, Mr. Xu Jingan and Mr. Lee Chi Hwa Joshua.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the GEM website athttp://www.hkgem.comon the "Latest Company Announcements" page for 7 days from the date of its posting and on the website of the Company.