China Ruifeng Renewable Energy : ANNOUNCEMENT MONTHLY UPDATE ON THE PROPOSED TRANSACTION

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CHINA RUIFENG RENEWABLE ENERGY HOLDINGS LIMITED ʕ਷๿ࠬอঐ๕છٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 527)

ANNOUNCEMENT

MONTHLY UPDATE ON THE PROPOSED TRANSACTION

References are made to (i) the announcement of China Ruifeng Renewable Energy Holdings Limited (the "Company") dated 19 July 2018 (the "Announcement") relating to a non-legally binding memorandum of understanding (the "MOU") dated 17 July 2018 entered into between the Company and the Subscriber; (ii) the announcements of the Company dated 20 August, 20 September, 22

October and 3 December 2018 setting out monthly updates on the status and progress in relation to the Proposed Transactions; and (iii) the announcement of the Company dated 1 November 2018 relating to a non-legally binding supplemental memorandum of understanding dated 1 November 2018 entered into between the Company and the Subscriber (the "Supplemental MOU"). Unless otherwise stated, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

The Company wishes to update the Shareholders that as at the date of this announcement, (i) the Subscriber and the Company are still in the course of carrying out their respective due diligence in respect of the Possible Subscription and the Possible Acquisition (the "Proposed Transactions") including but not limited to reviewing the latest available financial results and following up on the enquiries raised in the course of due diligence; and (ii) the Subscriber and the Company are still in negotiations on the terms of the Proposed Transactions. As at the date of this announcement, the Subscriber and the Company have not yet agreed on the scope of the Proposed Transactions, and the terms of the Proposed Transactions have yet to be agreed and finalised and accordingly no legally-binding agreement has been entered into between the Company and the Subscriber in respect of the Proposed Transactions. Pursuant to the MOU, the Exclusivity Period of 180 days commencing from the date of the MOU will end on 16 January 2019.

As the Possible Subscription will be conditional upon, among others, the Executive having granted the Whitewash Waiver, Shareholders and potential investors of the Company should note that the Proposed Transactions may or may not materialise and the final structure and terms of the Proposed Transactions, which are still subject to further negotiations between the Subscriber and the Company, have yet to be finalised and may deviate from those set out in the MOU (as supplemented and amended by the Supplemental MOU). Shareholders and potential investors of the Company should exercise caution when dealing in the Shares and other securities of the Company.

As the Exclusivity Period will expire on 16 January 2019, an announcement will be made to update the Shareholders on the matters of the Proposed Transactions in accordance with the Listing Rules and the Takeovers Code.

By Order of the Board

China Ruifeng Renewable Energy Holdings Limited

Zhang Zhixiang

Executive Director and Chief Executive Officer

Hong Kong, 2 January 2019

As at the date of this announcement, the executive Directors are Mr. Zhang Zhixiang (Chief Executive Officer), Mr. Ning Zhongzhi, Mr. Li Tian Hai and Mr. Peng Ziwei; and the independent non-executive Directors are Ms. Wong Wai Ling, Mr. Qu Weidong and Ms. Hu Xiaolin.

The Directors jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.