China Creative Global : Voluntary Announcement - Memorandum of Understanding with Ooo tomapnmeoeib(damali Furniture Limited*)

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 CREATIVE GLOBAL HOLDINGS LIMITED

中創環球控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1678) VOLUNTARY ANNOUNCEMENT MEMORANDUM OF UNDERSTANDING WITH OOO TOMAPNMEOEIB (DAMALI FURNITURE LIMITED*)

This is a voluntary announcement made by China Creative Global Holdings Limited (the "Company", together with its subsidiaries, the "Group").

The board of directors (the "Board") of the Company is pleased to announce that on 23 May 2017 (after trading hours), China Creative Express (Shenzhen) Supply Chain Management Co., Limited ( 中創運 通（深 圳）供應鏈管理有限公司 ) ("CC Express"), a wholly-owned subsidiary of the Company entered into a non-binding memorandum of understanding (the "MOU") with OOO TOMAPNMEOEIB (Damali Furniture Limited*) ("Damali") in relation to the proposed formation of a joint venture company (the "Proposed Joint Venture") for the purpose of trading processed wood products.

The MOU was intended to record the preliminary mutual understanding between the parties to the MOU and to serve as a platform for further negotiations and no binding agreement in relation to the Proposed Joint Venture has been entered into by the relevant parties.

MAIN FEATURES OF THE PROPOSED JOINT VENTURE

Pursuant to the terms of the MOU, CC Express shall contribute in cash for a 52% equity interest in the Proposed Joint Venture and Damali shall contribute all necessary resources for setting up of the Proposed Joint Venture for a 48% equity interest in the Proposed Joint Venture.

The Proposed Joint Venture will be principally engaged in projects involving the development and trading of wood products sourced from Sakhalinskaya Oblast, Russia. CC Express and Damali will be entitled to profits derived from the projects on a pro-rata basis in proportion to their respective equity ownership percentages in the Proposed Joint Venture. The proposed total investment for the Proposed Joint Venture will be HKD140 million. CC Express shall appoint the legal representative and chief financial controller of the Proposed Joint Venture.

REASONS FOR THE PROPOSED JOINT VENTURE

Damali is a company incorporated in Russia and owns a factory of approximately 6,000 square meters in Sakhalinskaya Oblast, Russia. The Board believes that the Proposed Joint Venture can benefit from abundant wood resources in Sakhalinskaya Oblast, Russia to match the strong demand of wood in China, which is in line with the strategic co-operation of forest resources between Russia and China. The Board considers the Proposed Joint Venture will improve the profits and develop diversification of business of the Group, reduce the cost of the Group's wood series electric fireplaces, and hence would be beneficial and in the interests of the Company and the Shareholders as a whole.

To the best knowledge, information and belief of the directors of the Company (the "Directors") after having made all reasonable enquiries, Damali and its ultimate beneficial owners are independent third parties who are not connected persons (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")) of the Company.

Shareholders and potential investors of the Company should note that the MOU may or may not lead to the entering into of the definitive agreement and transactions contemplated thereunder may or may not be consummated. The Board wishes to emphasize that no binding agreement in relation to the Proposed Joint Venture has been entered into by the Company as at the date of this announcement. The Company will make further announcement and obtain shareholders' approval if the parties enter into a specific project in the future where appropriate in compliance with the Listing Rules. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

By order of the Board

China Creative Global Holdings Limited Chen Fanglin

Chairman

Hong Kong, 23 May 2017

As at the date of this announcement, the executive directors of the Company are Mr. Chen Fanglin, Mr. Chen Hongming, Mr. Shen Jianzhong, Mr. Chen Jiang and Mr. Xu Qiang; and the independent non-executive directors of the Company are Mr. Dai Jianping, Mr. Ng Wing Keung and Ms. Sun Kam Ching.

* for identification purpose only