Announcements and Notices - Voluntary Announcement in Relation to the It Strategic Cooperation Agreement with Guang He Hui Yun and Chengwu County Government

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順泰控股集團有限公司

(incorporated in the Cayman Islands with limited liability)

This announcement is made by Sheen Tai Holdings Group Company Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis.

Reference is made to the announcement of the Company dated 30 March 2016 in relation to, among other things, the strategic cooperation agreement (the "Guang He Hui Yun Strategic Cooperation Agreement") entered into between the Company and Jiangsu Guang He Hui Yun Technology Company Limited* (江蘇廣和慧雲科技股份有限公司) ("Guang He Hui Yun") on the same day. Pursuant to the Guang He Hui Yun Strategic Cooperation Agreement, the parties agreed to cooperate in the investment in the acquisition and construction of the basic infrastructure of cloud platforms in third to fourth tier cities in the People's Republic of China (the "PRC").

To implement the strategic cooperation between the parties, on 25 October 2016, the Company and Guang He Hui Yun entered into an information technology strategic cooperation agreement (the "IT Strategic Cooperation Agreement") with Chengwu County Government* (成武縣人民政 府) ("Chengwu County Government") whereby the parties thereto agreed to establish a strategic cooperation relationship for a period of ten (10) years.

Under the IT Strategic Cooperation Agreement, the parties agreed to establish a new company in Chengwu County with investment amount of RMB100 million and build the infrastructure of distributed cloud platforms and related Software as a Service (SaaS) value-added services. Various services will be provided through the distributed cloud platforms, including but not limited to agriculture information service platform, supply-chain e-commerce platform and industry cloud. Guang He Hui Yun will be responsible for the maintenance of the cloud platforms. It is expected that the distributed cloud platforms not only will reduce the investment cost in information technology but also enhance the development of information technology and industry transformation in Chengwu County.

In addition, it was agreed in the IT Strategic Cooperation Agreement that the Company and Guang He Hui Yun will be responsible for the design of Chengwu County as a "Smart City" and will assist Chengwu County Government in the construction thereof.

In return, Chengwu County Government agreed to, among other things, (i) transfer its information technology businesses to the distributed cloud platforms and pay for the services provided by the Company; (ii) offer policy benefits and/or subsidies to the Company; and (iii) provide leases of office spaces on a complimentary basis for five (5) years with related hardware support.

Guang He Hui Yun is a company established in the PRC with limited liability and is principally engaged in, among others, the supply and operation of cloud platforms and the construction and operation of cloud computing data centers.

To the best of the directors' knowledge, information and belief, having made all reasonable enquiries, each of Guang He Hui Yun and its ultimate beneficial owners is independent of the Company and its connected persons.

The board (the "Board") of directors of the Company considers that the arrangements under the IT Strategic Cooperation Agreement implement the terms of the strategic cooperation between the Company and Guang He Hui Yun under the Strategic Cooperation Agreement and facilitate the Company's entry into the cloud computing industry in the PRC. In light of the aforesaid, the Board is of the view that the IT Strategic Cooperation Agreement is in the interests of the Company and its shareholders as a whole.

By Order of the Board

Chairman

Hong Kong, 27 October 2016

As at the date of this announcement, the executive directors of the Company are Mr. Guo Yumin, Ms. Xia Yu, Mr. Zeng Xiangyang, Mr. Guo Cheng and Mr. Bau Siu Fung and the independent non-executive directors are Ms. Fan Qing, Mr. Fong Wo, Felix, and Mr. Lo Wa Kei, Roy.

* For identification purpose only