China Qinfa : UPDATES ON THE ACQUISITION OF 70% EQUITY INTEREST IN PT SUMBER DAYA ENERGI

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.

中國秦發集團有限公司

CHINA QINFA GROUP LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 00866)

UPDATES ON THE ACQUISITION OF 70% EQUITY INTEREST

IN PT SUMBER DAYA ENERGI

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

Reference is made to the announcements of the Company dated 3 January 2020, 7 August 2020 and 31 December 2020 ("Announcements"). Unless the context requires otherwise, capitalized terms used herein shall have the same meanings as those defined in the Announcements.

Pursuant to the terms of CSPA and subsequent extension letter, completion of Proposed Acquisition (the "Completion") is subject to the satisfaction and/or wavier of conditions precedent provided under CSPA and was intended to be taken place on or before 31 March 2021 (the "Long Stop Date"). In the event the Proposed Acquisition could not be completed on or before 31 March 2021 for any reasons, Kokos Jiang must return the Deposit Fund to PT Qinfa Mining within 14 days from the date of notification from PT Qinfa Mining.

The Board noticed that more time is required on the approval by the relevant government authorities of the Republic of Indonesia. In view that additional time is required for the satisfaction of certain conditions precedent set forth in the CSPA, the Sellers and the Buyers have agreed in writing to extend the Long Stop Date until 30 June 2021. The Company may make further announcement to update Shareholders as to the development of the Proposed Acquisition as and when appropriate. Further announcement will be made by the Company upon Completion.

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The Board wishes to emphasize that as at the date of this announcement, the Completion is still subject to the fulfillment of the conditions precedent under the CSPA. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board of

China Qinfa Group Limited

Mr. XU Da

Chairman

Guangzhou, 31 March 2021

As at the date of this announcement, the Board comprises Mr. XU Da, Mr. BAI Tao and Ms. WANG Jianfei as the executive Directors, and Mr. LAU Sik Yuen, Prof. SHA Zhenquan and Mr. JING Dacheng as the independent non-executive Directors.

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