Further Broaden of Shareholder Base and Raise Funds for Future Acquisitions

HONG KONG — Sino Energy International Holdings Group Limited (“Sino Energy” or the “Company”; HKSE stock code: 1096) announced the issuance of convertible bonds in the aggregate amount of HK$150,000,000, to further broaden its shareholder base and establish a solid foundation for future development.

Subsequent to introducing China Huarong Overseas as its controlling shareholder earlier, Sino Energy will issue a total amount of 312,500,000 shares of 22-months convertible bonds to 6 subscribers based on the initial conversion price of HK$0.48 per conversion share with an interest at 7.5% per annum. Among all, Central China International Investment Company Limited (“Central China International”) is the largest subscriber. Central China International Financial Holdings Company Limited, parent company of Central China International, has registered capital of HK$500 million. Currently, Central China International Financial Holdings and its subsidiaries collectively hold licences for Type 1 (dealing in securities), Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities and money lender’s licence in Hong Kong, providing customers with one-stop comprehensive investment and finance services to create an diversified business platform of “international business chain”. Upon full conversion of the convertible bonds, Central China International would hold 10.86% stake, while Huarong Energy would remain as its single largest shareholder.

Assuming full conversion of the convertible bonds at the initial conversion price, the convertible bonds will be convertible into 312,500,000 conversion shares, representing approximately 19.45% of the existing issued share capital of the Company and approximately 16.28% of the issued share capital of the Company as enlarged by the issue of the conversion shares. The transaction is still subject to checks on compliance and in relation to other regulatory requirements and relevant approvals.

The net proceeds from the issue of the convertible bonds are estimated to be approximately HK$144,775,000 million, which are intended to be used for acquisition of business and as general working capital. Sino Energy has been actively transforming its business and pursuing energy-related business in recent years. It started developing gas station operations in China through acquisitions in the first half year and the new business has begun to contribute profit. The management of the Company is negotiating with a third party on a potential acquisition of certain interest in an energy related business but no formal agreement has yet been entered into by the Company in relation to such transaction. Once the deal is confirmed, the Company will disclose in due course.