China First Capital : DISCLOSEABLE TRANSACTION - FURTHER ACQUISITION OF SHARES IN SICHUAN JINLU GROUP CO., LTD.

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.

CHINA FIRST CAPITAL GROUP LIMITED

中國首控集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1269) DISCLOSEABLE TRANSACTION - FURTHER ACQUISITION OF SHARES IN SICHUAN JINLU GROUP CO., LTD.

The Company announces that from 23 May 2017 to 7 September 2017, the Company has, through an indirectly wholly-owned subsidiary, further acquired in aggregate 30,459,092 Jinlu Group Shares on the Shenzhen Stock Exchange, representing approximately 5.00% of the total issued shares of Jinlu Group as at 7 September 2017. The aggregate consideration for the Acquisition is approximately RMB283.1 million. Together with the Previous Acquisition, up to 7 September 2017, the Company holds in total 60,918,239 Jinlu Group Shares, representing approximately 10.00% of the total issued shares of Jinlu Group as at 7 September 2017. The aggregate consideration for the Acquisition and the Previous Acquisition is approximately RMB541.1 million.

As the highest of the applicable percentage ratios for the Acquisition, as aggregated pursuant to Rule 14.22 of the Listing Rules, exceeds 5% but is less than 25%, the Acquisition constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules. Accordingly, the Acquisition is subject to the notification and announcement requirements under Chapter 14 of the Listing Rules.

Reference is made to the announcement of the Company dated 4 November 2016 in relation to the acquisition of Jinlu Group Shares.

THE ACQUISITION

The Company announces that from 23 May 2017 to 7 September 2017, the Company has, through an indirectly wholly-owned subsidiary, further acquired in aggregate 30,459,092 Jinlu Group Shares on the Shenzhen Stock Exchange, representing approximately 5.00% of the total issued shares of Jinlu Group as at 7 September 2017. The aggregate consideration for the Acquisition is approximately RMB283.1 million. The Acquisition was made based on the market price of the Jinlu Group Shares at the time of purchase. The Company had settled the consideration of the Acquisition through internal resources.

To the best of the knowledge, information and belief of the Directors having made all reasonable enquiries, each of the sellers of the Jinlu Group Shares and their respective ultimate beneficial owners is an Independent Third Party.

Together with the Previous Acquisition, up to 7 September 2017, the Company holds in total 60,918,239 Jinlu Group Shares, representing approximately 10.00% of the total issued shares of Jinlu Group as at 7 September 2017. The aggregate consideration for the Acquisition and the Previous Acquisition is approximately RMB541.1 million.

INFORMATION ON JINLU GROUP

Jinlu Group is one of the largest chlor-alkali enterprises in the southwest region of the PRC. Its principal business is polyvinyl chloride (PVC) and chlor-alkali business, and the Jinlu Group Shares are listed on the Shenzhen Stock Exchange (000510.SZ).

According to the published financial statements of Jinlu Group, its financial results for the years ended 31 December 2015 and 2016, respectively are as follows:

For the year ended 31 December

2016 (Audited) RMB million (approximately)	2015 (Audited) RMB million (approximately)
Profit before taxation	54.3	20.7
Profit after taxation	54.3	6.5

According to the published financial statements of Jinlu Group, its net asset value as at 30 June 2017 was approximately RMB872.2 million.

REASONS FOR THE ACQUISITION

The Company is an investment holding company. Before 2014, the Group was mainly engaged in the automotive parts business. Since the end of 2014, the Group has started moving into the financial services business, providing services such as dealing in securities, underwriting and placing of securities, financing consultancy, merger and acquisition agency, financial advisory, asset management, private equity fund management, credit financing and migration financial services. From 2016, the Group continued to diversify its business by stepping up its efforts in the financial services business while developing its education operation business. It shifted its principal focus onto education operations and utilized its own diversified financial services units, intending to build a platform of operation, investment and financing in the education sector guided by its "Education Operation plus Financial Services" strategy thereby delivering a long-term stable cash flow and generating favorable investment returns for its shareholders and partners.

The Acquisition is an investment of the Group. Following the opportunities brought about by China's economic transformation and upgrading as well as the promising development prospect of real economy and capital market, the financial condition and business development of Jinlu Group have achieved continuous and significant improvement. The Directors consider that Jinlu Group has good growth potential and therefore, the consideration for the Acquisition was reasonable.

Given that the Acquisition was made on prevailing market prices, the Directors consider that the Acquisition is fair and reasonable and in the interests of the Company and the Shareholders as a whole.

LISTING RULES IMPLICATIONS

As the highest of the applicable percentage ratios for the Acquisition, as aggregated pursuant to Rule 14.22 of the Listing Rules, exceeds 5% but is less than 25%, the Acquisition constitutes a discloseable transaction for the Company under Chapter 14 of the Listing Rules. Accordingly, the Acquisition is subject to the notification and announcement requirements under Chapter 14 of the Listing Rules.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following expressions shall have the meanings set out below:

"Acquisition" the acquisition of an aggregate of 30,459,092 Jinlu Group Shares by the Company through an indirectly wholly-owned subsidiary "Board" the board of Directors "China" or "PRC" the People's Republic of China, for the purpose of

this announcement, excluding Hong Kong, the Macau Special Administrative Region and Taiwan

"Company" China First Capital Group Limited, a company incorporated in the Cayman Islands with limited liability, whose issued Shares are listed on the main board of the Stock Exchange "connected person(s)" has the meaning ascribed to it under the Listing Rules "Director(s)" the director(s) of the Company "Group" the Company and its subsidiaries "Hong Kong" The Hong Kong Special Administrative Region of the PRC "Independent Third Party(ies)" a third party(ies) independent of and not connected

with the Company and its connected persons and not otherwise a connected person of the Company

"Jinlu Group" Sichuan Jinlu Group Co., Ltd., which is more particularly described in the section headed "Information on Jinlu Group" of this announcement "Jinlu Group Shares" ordinary shares of RMB1.00 each in the issued share

capital of Jinlu Group

"Listing Rules" the Rules Governing the Listing of Securities on the Stock Exchange "Previous Acquisition" the acquisition of an aggregate of 30,459,147 Jinlu

Group Shares by the Company through a wholly-owned subsidiary as disclosed in the announcement of the Company dated 4 November 2016

"RMB" Renminbi, the lawful currency of the PRC "Share(s)" ordinary share(s) of HK$0.02 each in the share capital of the Company "Shareholder(s)" the holder(s) of the Share(s) "Stock Exchange" The Stock Exchange of Hong Kong Limited "%" per cent

By Order of the Board

China First Capital Group Limited Wilson Sea

Chairman and Executive Director

Hong Kong, 7 September 2017

As at the date of this announcement, the executive Directors are Mr. Wilson Sea, Mr. Tang Mingyang, Mr. Zhao Zhijun, Ms. Li Dan and Mr. Yan Haiting; the non-executive Director is Mr. Li Hua; and the independent non-executive Directors are Mr. Chu Kin Wang, Peleus, Mr. Li Zhiqiang and Mr. Chen Gang.