China Shenghai : VOLUNTARY ANNOUNCEMENT POTENTIAL ACQUISITION

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中國升海集團有限公司

China Shenghai Group Limited

(formerly known as China Shenghai Food Holdings Company Limited)

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1676)

VOLUNTARY ANNOUNCEMENT

POTENTIAL ACQUISITION

This announcement is made by China Shenghai Group Limited (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).

The board of directors (the "Board") of the Company would like to inform the shareholders of the Company (the "Shareholders") and potential investors that the Company is in discussions with an independent third party regarding the potential acquisition of an e-commerce business (the "Potential Acquisition"). The Potential Acquisition if materialised, may constitute a notifiable transaction of the Company under the Listing Rules.

As at the date of this announcement, no material terms concerning the Potential Acquisition have been agreed and the Company has not entered into any definitive agreement in relation to the Potential Acquisition. The Board will make further announcement as and when necessary in compliance with the Listing Rules and applicable laws.

The Potential Acquisition may or may not materialize. Shareholders and potential investors are reminded to exercise caution when dealing in the securities of the Company.

By the Order of the Board

China Shenghai Group Limited

Liu Rongru

Joint-Chairman and Chief Executive Officer

Xiamen, the PRC, 22 March 2021

As at the date of this announcement, the non-executive director of the Company is Mr. Li Dongfan; the executive directors of the Company are Mr. Liu Rongru and Ms. Li Jiayin and the independent non-executive directors of the Company are Mr. Liu Dajin, Mr. Liu Junting and Mr. Pang Wai Ching.

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