Finsoft Financial Investment Holdngs : UPDATE ON PERFORMANCE OF AVAILABLE-FOR-SALE INVESTMENT

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FINSOFT FINANCIAL INVESTMENT HOLDINGS LIMITED ිৌږፄҳ༟છٰϞࠢʮ̡*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8018)

UPDATE ON PERFORMANCE OF AVAILABLE-FOR-SALE INVESTMENT

This announcement is made by Finsoft Financial Investment Holdings Limited ("Company", together with its subsidiaries, "Group") pursuant to Rule 17.10 of the Rules ("GEM Listing Rules") Governing the Listing of Securities on the Growth Enterprise Market ("GEM") of The Stock Exchange of Hong Kong Limited and the Inside Information Provisions (as defined in the GEM Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

The board ("Board") of directors (each, a "Director") of the Company wishes to inform the shareholders of the Company ("Shareholders") and potential investors that, based on the information currently available to the Board, the Group expects to record an impairment loss on available-for-sale investments ("Impairment Loss") of approximately HK$25.1 million for the year ended 31 December 2017. The Impairment Loss is attributable to the reclassification of fair value loss on available-for-sale investments of approximately HK$25.1 million from other comprehensive loss to profit or loss in respect of one of the Group's available-for-sale investments, namely, securities of China Parenting Network Holdings Limited, whose shares are listed on the GEM (Stock code: 8361) (a fair value gain recorded in investment revaluation reserve for the year ended 31 December 2016: approximately HK$4.8 million). The Impairment Loss is expected to adversely affect the financial performance of the Group for the year ended 31 December 2017.

The information contained in this announcement is only based on the preliminary assessment by the management of the Company based on figures and information made available to the Board as at the date hereof, and is not based on any figure or information which has been audited or reviewed by the Company's auditors. The Company is in the process of finalising the annual results of the Group for the year ended 31 December 2017. Details of the Group's annual financial information and performance will be disclosed in the 2017 annual results announcement to be published by the Company.

*For identification purpose only

Shareholders and potential investors should exercise caution when dealing in the shares of the Company.

On behalf of the Board

Finsoft Financial Investment Holdings Limited

Mr. Chan Wai Lung

Chairman

Hong Kong, 12 January 2018

As at the date of this announcement, the Board consists of Mr. Chan Wai Lung being an executive Director and the chairman of the Board, Ms. Lam Ching Yee and Ms. Lin Ting being the executive Directors, Mr. Fung Ka Lok Adams and Mr. Ng Wing Cheong Stephen being the non-executive Directors, and Mr. Lam Kai Yeung, Ms. Lee Kwun Ling, May Jean and Mr. Zhong Shi being the independent non-executive Directors.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the "Latest Company Announcements" page of the website of the GEM atwww.hkgem.comfor a minimum period of seven days from the date of its publication and on the Company's website atwww.finsofthk.com.