Hanhua Financial : ANNOUNCEMENT OF DISCIPLINARY ACTION RECEIVED BY THE COMPANY'S NON-EXECUTIVE DIRECTORS AND THE COMPANY CONTROLLED BY NON-EXECUTIVE DIRECTORS

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.

Hanhua Financial Holding Co., Ltd.*

(A joint stock limited liability company incorporated in the People's Republic of China)

(Stock Code: 3903)

ANNOUNCEMENT OF DISCIPLINARY ACTION RECEIVED BY THE COMPANY'S NON-EXECUTIVE DIRECTORS AND THE COMPANY CONTROLLED BY NON-EXECUTIVE DIRECTORS

References are made to the announcements (the " Announcements " ) of Hanhua Financial Holding Co., Ltd. (the "Company " ) dated on 24 May 2019, 29 May 2019 and 10 July 2019 respectively pursuant to rule 13.51B(2) and 13.51(2) of the Listing Rules. Unless otherwise defined, capitalized terms used in this announcement shall have the same meaning as defined in the Announcements.

The Company received the news from Longcin Holdings Limited ( "Longxin Holdings") that

Shanghai Stock Exchange has published the Decision of the Shanghai Stock Exchange on Disciplinary Actions against Shanghai Fenghua (Group) Co., Ltd., Controlling Shareholder Loncxin Holdings Co., Ltd. Actual Controller Tu Jianhua and Responsible Persons ([2019] No.

1. (the " Decision " ) on its website (http://www.sse.com.cn) on 17 December 2019, the Decision publicly condemned parties including Shanghai Fenghua, Longcin Holdings Limited and Mr. Tu. The relevant contents of the Decision are announced as follows:

Shanghai Fenghua's large capital (approximately RMB480 million) was occupied by its controlling shareholder Longcin Holdings for non-operating purposes. Longcin Holdings originally promised in writing on 26 March 2019 that it would return the occupied funds and the related charges within 3 months. However, Shanghai Fenghua did not receive the funds and the related charges until 12 September 2019. The return delayed by more than 2 months. Meanwhile.

As a controlling shareholder of Shanghai Fenghua, Longcin Holdings has a huge amount of non- operating capital, which seriously damages the interests of Shanghai Fenghua and Shanghai

Fenghua investors, and seriously violates the Shanghai Stock Exchange Listing Rules , Notice on Certain Issues of Related Party Funds Exchanges and Listed Companies' External Guarantees and Guidelines for Controlling Shareholders and Actual Controllers of Listed Companies on the Shanghai Stock Exchange("Guidelines").

Mr. Tu, as the actual controller of Shanghai Fenghua, used his control over Shanghai Fenghua to damage the independence of Shanghai Fenghua and violated the Articles 1.1, 1.4 and 2.2 of Guidelines.

Considering that Longcin Holdings has returned the non-operating occupation funds and the related charges, and has adopted measures to remedy the violations, Shanghai Stock Exchange considered lightly punishing the responsible persons as appropriate.

Shanghai Stock Exchange has publicly condemned Shanghai Fenghua Group and its controlling shareholder Longcin Holdings and its actual controller Tu in accordance with the relevant provisions of the Stock Listing Rules and the Measures for the Implementation of Disciplinary and Supervision Measures of the Shanghai Stock Exchange. If the party receiving the penalty are not satisfied with the disciplinary action against public condemnation, they should apply to the Shanghai Stock Exchange for review within 15 business days from the date of receipt of the Decision, and the implementation of the decision will not stop during the review period.

As of the date of this announcement, Mr. Tu is a non-executive director of the Company, holds 2% equity of Longcin Holdings, and holds 98% equity of Longcin Group( the controlling shareholder of Longcin Holdings ). Longcin Holdings holds 432,188,780 domestic shares of the Company, accounting for approximately 9.40% of the existing issued share capital of the Company. The company's shareholding structure is decentralized and there is no controlling shareholder or actual controller.

The non-operating occupation event of Shanghai Fenghua is not related to the operation of the Company and does not have any effect on the operation of the Company.

By order of the Board

Hanhua Financial Holding Co., Ltd.

Zhang Guoxiang

Chairman of the Board

Chongqing, the PRC, 23 December 2019

As at the date of this announcement, the executive directors of the Company are Mr. ZHANG Guoxiang, Mr. WANG Dayong and Mr. CUI Weilan; the non-executive directors of the Company are Mr. TU Jianhua, Ms. LIU Jiaoyang, Ms. LIU Tingrong, Ms. WANG Fangfei, Mr. FENG Yongxiang and Mr. LIU Bolin; and the independent non-executive directors of the Company are Mr. BAI Qinxian, Mr. DENG Zhaoyu, Mr. QIAN Shizheng, Mr. NG Leung Sing and Mr. YUAN Xiaobin.

* For identification purpose only