Shanghai Dasheng Agrcltr Fin Tech : INSIDE INFORMATION LEGAL PROCEEDINGS ON BREACH OF LOAN AGREEMENT

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

(Stock code: 1103)

INSIDE INFORMATION

LEGAL PROCEEDINGS ON BREACH OF LOAN AGREEMENT

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).

On 4 September 2019, Jiujiang Bank Co., Ltd. Guangdong Free Trade Zone Nansha Sub-branch (the "Jiujiang Bank") issued and filed a statement of claim (the "Jiujiang SOC") against the Company under the Guangzhou Intermediate People's Court* (廣州市中級人民法院) (the "Court") for breach of loan agreement due to the Company being named "a dishonest person subject to enforcement" (失 信被執行人) and the deterioration of the Company's financial condition, which constitute an event of default under the loan agreement (the "Loan") dated 18 August 2017 entered into between the Jiujiang Bank and the Company with a pledge of approximately 91.3% equity interest in Nantong Road and Bridge Engineering Co., Ltd.* (南通路橋工程有限公司) ("Nantong Road and Bridge") of the Company for the Loan under a pledge agreement entered into on the same date (the "Jiujiang Legal Proceedings"). The Jiujiang Bank requested the Court, among other things, to order (i) the Company to repay the Loan in an aggregate principal amount of RMB387.99 million and all related interests and (ii) the Jiujiang Bank to be entitled the priority of compensation claims against proceeds from the realisation of the Company's interest in Nantong Road and Bridge.

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The guarantors to the Loan, namely (i) Shenzhen Dasheng Agricultural Group Co., Ltd.* (深圳市 大生農業集團有限公司) ("Shenzhen Dasheng"), being a substantial shareholder (as defined in the Listing Rules) of the Company, (ii) Dasheng (Fujian) Agricultural Ltd.* (大生(福建)農業有限公 司), being a subsidiary of Shenzhen Dasheng, (iii) Mr. Lan Huasheng, being an executive Director and chairman of the Board, and (iv) Mr. Lu Tingfu, being a non-executive Director, were also named as defendants in the Jiujiang SOC. The Company received the summons dated 9 September 2019 in relation to the Jiujiang SOC on 23 September 2019. The hearing of the Jiujiang Legal Proceedings is scheduled to be held on 29 November 2019 at the Court.

IMPACT OF THE JIUJIANG LEGAL PROCEEDINGS ON THE GROUP

The principal amount of the Loan represents approximately 17.05% of the Group's total borrowings as at 30 June 2019. The Board is seeking legal advice in respect of the Jiujiang Legal Proceedings and is assessing its potential impact on the Company at the moment. In any event, the Jiujiang Legal Proceedings do not affect the normal operation of the Group. 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, 23 September 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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