China Zhongwang Holdings Limited published an article on its website on July 31, 2019, and a news article published on its website by the US Department of Justice on the same day, China Zhongwang Holdings Co., Ltd., on August 1, 2019. an article published on its website by the U.S. Department of Justice. The relevant article relates to the fact that the Federal Grand jury of the United States has filed a lawsuit against, among other things, the controlling shareholder of the Company (the "controlling shareholder") and the Company on charges including tariff evasion (the "alleged action"). Notice that the controlling shareholder has confirmed to the Company that he has not received any legal documents or notices in respect of the alleged proceedings. The original announcement is as follows:

The Board of Directors (the "Board") of China Zhongwang Holdings Limited (the "Company" and its subsidiaries collectively referred to as the "Group") took note of an article published on its website by the Wall Street Journal on 31 July 2019 and a news article published by the United States Department of Justice on its website on the same day (the "relevant article"). The relevant article concerns that the US federal grand jury has filed a lawsuit against, among other things, the controlling shareholder of the Company (the "controlling shareholder") and the Company on charges including tariff evasion (the "alleged action").

The Company has clarified a number of relevant allegations in its clarification announcements dated 12 August 2015, 10 September 2015 and 12 May 2017 and 17 September 2017 respectively (the "clarification notice"). After reviewing the relevant articles and consulting the controlling shareholders, the Company has nothing else to add to the clarification announcement.

The controlling shareholder has confirmed to the Company that he has not received any legal instrument or notice of the alleged action. The Company also confirms that no legal documents or notices have been received in respect of the alleged proceedings.

The Company hereby declares that the Group has strictly complied with the laws and regulations of the people's Republic of China and the places where the Group's products are exported in the course of its business operations, and has expanded its overseas markets under the principle of fair and orderly competition.

Having made reasonable enquiries about the Company in the relevant circumstances and within the available time, the Board confirms that it is not aware of any information that must be made public to avoid a false market for the Company's securities or any inside information required to be disclosed under part XIVA of the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong).

Shareholders and potential investors of the Company are advised to exercise caution in buying and selling securities of the Company.

Under the orders of the board of directors, company secretary of china Zhongwang holdings limited: Cui Weiye

Hong Kong, 1 August 2019

As at the date of this announcement, the members of the Board of Directors of the Company include:

Executive Directors: Mr. Lo Cheung Ching and Ms. Ma Ching Mei

Non-executive directors: Mr. Chen Yan, Mr. Lin Jun and Mr. Wei Qiang, Mr. Wang Zhenhua, Mr. Wen Xianjun, Mr. Shi Ketong and Mr. Lo Wah Kai, independent non-executive directors of Mr. Chen Yan, Mr. Lin Jun and Mr. Wei Qiang

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