Shanghai Dasheng Agriculture Finance Technology : INSIDE INFORMATION UPDATE ON LEGAL PROCEEDINGS

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(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock code: 1103)

INSIDE INFORMATION

UPDATE ON LEGAL PROCEEDINGS

This announcement is made by Shanghai Dasheng Agriculture Finance Technology Co., Ltd. (上海 大生農業金融科技股份有限公司) (the "Company") 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).

Reference is made to the announcement of the Company dated 23 September 2019 in relation to the Jiujiang Legal Proceedings (the "Announcement"). Unless the context otherwise requires, the terms used in this announcement shall have the same meanings as those defined in the Announcement.

Pursuant to a civil mediation order issued by the Court dated 15 October 2019 received by the Company on 18 October 2019, the Jiujiang Bank and the defendants to the Jiujiang SOC, namely, the Company, Shenzhen Dasheng, Dasheng (Fujian) Agricultural Ltd.* (大生(福建)農業有限公司), Mr. Lan Huasheng, being an executive Director and chairman of the Board, and Mr. Lu Tingfu, being

1. non-executiveDirector (collectively, the "Defendants"), have agreed, among other things, that the Company shall repay the Jiujiang Bank an aggregate amount of RMB413,069,960.42 (inclusive of the principal amount of the Loan and all related interests accrued up till 25 September 2019) together with the legal fees and ancillary fees incurred by the Jiujiang Bank in one lump sum by 22 October 2019 (the "Repayment"). The Company shall also pay the Jiujiang Bank all related interests of the Loan accrued between 25 September 2019 and the actual repayment date. In the case where the Company fails to settle the Repayment by 22 October 2019, the Jiujiang Bank is entitled to the priority of compensation claims against proceeds from the realisation of the Company's interest in Nantong Road and Bridge. Each of the Defendants shall undertake joint and several liability for the Repayment.

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IMPACT OF THE jiujiang LEGAL PROCEEDINGS ON THE GROUP

As at the date of this announcement, no auction procedure of the Company's equity interest in Nantong Road and Bridge has been initiated. Based on the current financial condition of the Group, the Directors are of the view that the Group may not be able to settle the Repayment by 22 October 2019. The Company shall use its best endeavours to settle the Repayment as soon as possible. In case where the Company fails to settle the Repayment by 22 October 2019, the materialisation of the realisation of the Company's equity interest in Nantong Road and Bridge as stipulated under the civil mediation order would not constitute a "transaction" as defined in Chapter 14 of the Listing Rules. The Company will actively respond to the action and make further announcement(s) to keep its shareholders and investors informed of any significant development of the Jiujiang Legal Proceedings and any potential impact on the Company identified by the Board as and when appropriate.

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

By order of the Board

Shanghai Dasheng Agriculture Finance Technology Co., Ltd.

Lan Huasheng

Chairman

Shanghai, PRC, 18 October 2019

As at the date of this announcement, the Board comprises three executive directors: Mr. Lan

Huasheng, Mr. Wang Liguo and Mr. Yan Zebin; one non-executive director: Mr. Lu Tingfu; and three

independent non-executive directors: Mr. Chung Cheuk Ming, Mr. Yang Gaoyu and Mr. Zhou Jianhao.

*For identification purpose only

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