Sheen Tai : Announcements and Notices - Clarification Announcement Discloseable Transaction Subscription of Wealth Management Products

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.

Sheen Tai Holdings Group Company Limited

順泰控股集團有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock code: 01335) CLARIFICATION ANNOUNCEMENT DISCLOSEABLE TRANSACTION SUBSCRIPTION OF WEALTH MANAGEMENT PRODUCTS

Reference is made to the annual results announcement (the "2016 Annual Results Announcement") and the annual report (the "2016 Annual Report") of Sheen Tai Holdings Group Company Limited (the "Company", together with its subsidiaries, the "Group") for the year ended 31 December 2016 posted on the websites of the Stock Exchange and the Company on 31 March 2017 and 12 April 2017, respectively. Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as defined in the 2016 Annual Results Announcement and the 2016 Annual Report.

As disclosed in the item "Financial assets at fair value through profit or loss" on page 4 of the 2016 Annual Results Announcement, and note 15 to the financial statements of the 2016 Annual Report, as at 31 December 2016, the Group had an audited total financial assets at fair value through profit or loss of HK$224,648,000, which included certain unlisted financial products/wealth management products with a fair value of HK$168,809,000 as at 31 December 2016.

The Company would like to clarify and provide further information in respect of the said unlisted financial products/wealth management products. On 8 June and 13 July 2016, the Company, through its subsidiary Xuzhou New Advantage Real Estate Development Co., Ltd. (徐州新優 勢房地產開發有限公司) ("Xuzhou New Advantage"), as subscriber, entered into two wealth

management agreements (the "Wealth Management Agreement(s)") with Agricultural Bank of China, pursuant to which, the Company agreed to subscribe for two different wealth management products (the "Wealth Management Product(s)") issued by Agricultural Bank of China (the "Subscription(s)") within the period from the date of the respective Wealth Management Agreements to 31 December 2016 (the "Relevant Period").

The proposed cap for the Wealth Management Products within the Relevant Period is RMB 200,000,000 (equivalent to approximately HK$ 232,558,139). The source of funds of the Subscriptions are made from the idle self-owned funds of the Group.

Details of the Wealth Management Agreements are as follows:

First Wealth Management Agreement

1. Date 8 June 2016

2. Name of the Wealth Management Product:

   "An Xin Ling Dong 20 Days" RMB wealth management product of Agricultural Bank of China (中國農業銀行

   「安心靈動20天」人民幣理財產品).

3. Parties: (i) Agricultural Bank of China as issuer; and

   (ii) Xuzhou New Advantage as subscriber.

   To the best knowledge, information and belief of the Directors, Agricultural Bank of China and its ultimate beneficial owners are not connected persons of the Company and are third parties independent of the Company and its connected persons.

4. Type of Wealth Management Product:

   Non-principal guaranteed with floating return

5. Risk rating of product: Low-to-Medium

6. Proposed cap of the subscription amount:

   RMB 200,000,000. The Board considers that the consideration for the Subscription was determined on the basis of arm's length commercial terms.

7. Currency of the Subscription: Renminbi

8. Minimum holding period for the Wealth Management Product:

   20 days

9. Expected return on annualised basis:

   Around 3.5% after payment of the fees.

10. Investment scope of the Wealth Management Product:

    This Wealth Management Product mainly invests in domestic and foreign money market instruments with fixed risks and income, including state treasury bonds, financial bonds, central bank bills, money market instruments, credit bonds with higher credit rating, debt financing instruments under private placement, inter-bank funding business with low risks and swap transaction, as well as investment instruments with fixed income issued by commercial banks or other qualified institutions, non-standard debts, trust plans and other types of investment products that comply with regulatory requirements.

    Approximately 20 to 40% of the funds will be invested in treasury bonds in inter-bank bonds market, central bank bills, financial bonds, repurchases, credit bonds with high credit rating, debt financing instruments under private placement, cash and deposits and approximately 50 to 80% of the funds will be invested in inter-bank deposits, investment trust plan, proceeds right, entrusted assets and other investments that meet regulatory requirements. Such investment proportions may vary in the range of -10% to 10%, as Agricultural Bank of China may adjust the investment portfolio in accordance with the trend and dynamic of the related investment markets.

11. Payment of return on principal upon maturity:

If the principal and return are to be redeemed before 15:00 on the redemption date, the principal and return will be redeemed on the redemption date; if the principal and return are to be redeemed after 15:00 on the redemption date, the principal and return will be redeemed 1 day after the redemption day.

Second Wealth Management Agreement

1. Date: 13 July 2016

2. Name of the Wealth Management Product:

   "An Xin Kuai Xian Bubugao" wealth management product for legal entity of Agricultural Bank of China ( 中國農業銀行「安心快線步步高」法人專屬開放式 理財產品 ).

3. Parties: (i) Agricultural Bank of China as issuer; and

   (ii) Xuzhou New Advantage as subscriber.

   To the best knowledge, information and belief of the Directors, Agricultural Bank of China and its ultimate beneficial owners are not connected persons of the Company and are third parties independent of the Company and its connected persons.

4. Type of Wealth Management Product:

   Non-principal guaranteed with floating return

5. Risk rating of product: Low-to-Medium

6. Proposed cap of the subscription amount:

   RMB 200,000,000 The Board considers that the consideration for the Subscription was determined on the basis of arm's length commercial terms.

7. Currency of the Subscription: Renminbi

8. Minimum holding period for the Wealth Management Product:

   1 day

9. Expected return on annualised basis:

Between 2.30% and 3.55% after payment of the fees and depending on the holding period.