CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE STOCK EXCHANGE AND GEM, RESPECTIVELY) GEM has been pos

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1 CHONG SING HOLDINGS FINTECH GROUP LIMITED 中新控 股科 技集團有限公司 (Formerly known as Credit China FinTech Holdings Limited 前稱中國信貸科技控股有限公司) (Incorporated in the Cayman Islands with limited liability 於開曼群島註冊成立的有限公司) Stock Code 股份代號 : 8207 Third Quarterly Report 第三季度報告 2017

2 CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE STOCK EXCHANGE AND GEM, RESPECTIVELY) GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the main board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM. Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, 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 report. This report, for which the directors of Chong Sing Holdings FinTech Group Limited, formerly known as Credit China FinTech Holdings Limited (the Company and the Directors, respectively) collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM (the GEM Listing Rules ) for the purposes 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 report 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 report misleading

3 CONTENTS Corporate Information 3 Financial Highlights 6 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 7 Notes to the Condensed Consolidated Financial Statements 9 Management Discussion and Analysis 16 Other Information 27 In the event of any error or omission in the Chinese translation of this third quarterly report, the English text shall prevail. 2 CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

4 CORPORATE INFORMATION Directors Executive Directors Mr. Phang Yew Kiat (Vice-Chairman and Chief Executive Officer) Mr. Chng Swee Ho Mr. Sheng Jia Non-executive Directors Mr. Li Mingshan (Chairman) Mr. Li Gang Mr. Wong Sai Hung Mr. Zhang Zhenxin Ms. Zhou Youmeng Independent Non-executive Directors Mr. Ge Ming Dr. Ou Minggang Dr. Wang Songqi Dr. Yin Zhongli Company Secretary Mr. Kwok Siu Man (A fellow of The Hong Kong Institute of Chartered Secretaries) Compliance Officer Mr. Chng Swee Ho Authorized Representatives Mr. Phang Yew Kiat Mr. Kwok Siu Man Audit Committee Mr. Ge Ming (Chairman) Dr. Ou Minggang Dr. Wang Songqi Dr. Yin Zhongli

5 CORPORATE INFORMATION (Continued) Nomination Committee Dr. Ou Minggang (Chairman) Mr. Ge Ming Dr. Wang Songqi Dr. Yin Zhongli Remuneration Committee Dr. Yin Zhongli (Chairman) Mr. Ge Ming Dr. Ou Minggang Dr. Wang Songqi PRINCIPAL BANKERS China Merchants Bank Hong Kong Branch 21/F, Bank of America Tower 12 Harcourt Road Central, Hong Kong China Construction Bank Corporation (Shanghai Nanjing West Road Sub-branch) No , Nanjing West Road Shanghai, The People s Republic of China (the PRC ) INDEPENDENT AUDITOR SHINEWING (HK) CPA Limited Certified Public Accountants 43/F, Lee Garden One 33 Hysan Avenue Causeway Bay, Hong Kong LEGAL ADVISER Mayer Brown JSM 16th-19th Floors, Prince s Building 10 Chater Road Central Hong Kong REGISTERED OFFICE Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman, KY Cayman Islands Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman, KY Cayman Islands 4 CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

6 CORPORATE INFORMATION (Continued) PRINCIPAL PLACE OF BUSINESS IN HONG KONG Rooms , Level 35 Two Pacific Place 88 Queensway Hong Kong HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS IN THE PRC Room E-F, 28F, Mirae Asset Tower No. 166 Lujiazui Ring Road Pudong, Shanghai The PRC Postal Code PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE IN CAYMAN ISLANDS SMP Partners (Cayman) Limited Royal Bank House, 3rd Floor 24 Shedden Road P.O. Box 1586 Grand Cayman, KY Cayman Islands HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE Tricor Investor Services Limited Level 22, Hopewell Centre 183 Queen s Road East Hong Kong WEBSITE STOCK CODE INVESTOR RELATIONS CONTACT ir@csfgroup.com E-F SMP Partners (Cayman) Limited Royal Bank House, 3rd Floor 24 Shedden Road P.O. Box 1586 Grand Cayman, KY Cayman Islands ir@csfgroup.com

7 FINANCIAL HIGHLIGHTS Third Quarter of 2017 For the nine months ended 30 September (Unaudited) (Unaudited) RMB 000 RMB 000 Periodon-period change Operating Results Turnover 3,669, , % Profit for the period 1,151, , % Profit attributable to owners of the Company 781, , % Non-GAAP profit attributable to owners of the Company 633, , % RMB RMB Earnings per share basic 3.57 cents 1.08 cents 231% diluted 3.40 cents 1.07 cents 218% Non-GAAP earnings per share basic 2.89 cents 1.46 cents 98% diluted 2.76 cents 1.45 cents 90% 6 CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

8 The board of Directors (the Board ) is pleased to present the unaudited condensed consolidated results of the Company and its subsidiaries (collectively the Group ) for the three months and nine months ended 30 September 2017 together with the comparative unaudited figures for the corresponding periods in 2016, as follows: CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the three months and nine months ended 30 September 2017 For the three months ended 30 September For the nine months ended 30 September (Unaudited) (Unaudited) (Unaudited) (Unaudited) Notes RMB 000 RMB 000 RMB 000 RMB 000 Turnover 3 1,687, ,633 3,669, ,965 Interest income 3 115, , , ,123 Interest expenses 6 (92,861) (64,461) (280,599) (147,666) Net interest income 22,463 39,495 61, ,457 Financial consultancy service income 3 19,043 1,445 53,035 21,216 Third party payment service income 3 111,075 50, , ,161 Online investment and technology-enabled lending service income 3 1,395,156 81,370 2,885, ,674 Gain on transfer of rights on interest on loan receivables 3 30,461 Others 3 47,056 23, ,392 36,791 1,594, ,172 3,388, ,299 Other income 5 13,973 6,503 25,665 16,113 Other gains or losses 5 5,677 3,668 Handling charges for third party payment services (16,380) (7,500) (31,973) (26,735) Administrative and other operating expenses (880,886) (64,870) (1,935,758) (169,006) Change in fair value of embedded derivative components of convertible bond (200) Share-based payment expenses (38,275) (31,111) (129,785) (73,434) Share of results of associates 10,133 17,655 52,775 36,289 Gain on disposal of subsidiaries 408, Gain on deemed disposal of subsidiaries 3,303 Loss on deemed disposal of an associate (2,029) Loss on disposal of an associate (797) Change in fair value of preference share of a subsidiary (81,016) (181,565)

9 Profit before tax 7 608, ,849 1,603, ,537 Income tax 8 (185,313) (20,177) (451,840) (44,622) Profit for the period 422,706 96,672 1,151, ,915 Other comprehensive income (expense) for the period Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations Change in fair value of available-for-sale investments Reclassification upon disposal of available-for-sale investments Other comprehensive expense for the period, net of income tax Total comprehensive income for the period (13,821) 6,801 (53,269) 22,262 (2,541) 4,152 (2,892) (4,152) (4,152) (20,514) 6,801 (53,269) 19,370 For the three months ended 30 September For the nine months ended 30 September (Unaudited) (Unaudited) (Unaudited) (Unaudited) Notes RMB 000 RMB 000 RMB 000 RMB , ,473 1,098, ,285 Profit for the period attributable to: Owners of the Company 214,744 90, , ,659 Non-controlling interests 207,962 5, ,790 6, ,706 96,672 1,151, ,915 Total comprehensive income for the period attributable to: Owners of the Company 194,595 97, , ,008 Non-controlling interests 207,597 5, ,283 6, , ,473 1,098, ,285 RMB RMB RMB RMB Earnings per share 10 Basic 0.97 cent 0.44 cent 3.57 cents 1.08 cents Diluted 0.93 cent 0.44 cent 3.40 cents 1.07 cents 8 CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

10 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PREPARATION The unaudited condensed consolidated results of the Group for the three months and nine months ended 30 September 2017 have been prepared in accordance with the Hong Kong Accounting Standards and Interpretations and complied with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the GEM Listing Rules. 2. PRINCIPAL ACCOUNTING POLICIES The accounting policies used in the preparation of these results are consistent with those used in the preparation of the Group s annual financial statements for the year ended 31 December TURNOVER The principal activities of the Company s subsidiaries are provision of traditional financing services and related financing consultancy services including entrusted loan service, real estate-backed loan service, pawn loan service, other loan service and microfinance service, and internet financing services including third party payment service, online investment and technology-enabled lending service and related activities on loan portfolio management, as well as provision of social gaming services and provision of IT solution services. Turnover represents interest income (either from entrusted loans, real estate-backed loans, pawn loans, other loans or micro loans), financial consultancy service income, third party payment service income, online investment and technology-enabled lending service income, social gaming service income, IT solution service income and gain on transfer of rights on interest on loan receivables, net of corresponding sales related taxes. The amount of each significant category of revenue recognised in turnover for the period is as follows: IT IT For the three months ended 30 September For the nine months ended 30 September (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB 000 RMB 000 RMB 000 RMB 000 Interest income Entrusted loan service income 23,922 28,299 67,241 89,362 Other loan service and real estate-backed loan service income 91,360 75, , ,605 Microfinance service income , , , ,123 Financial consultancy service income 19,043 1,445 53,035 21,216 Third party payment service income 111,075 50, , ,161 Online investment and technologyenabled lending service income 1,395,156 81,370 2,885, ,674 Gain on transfer of rights on interest on loan receivables 30,461 Others 47,056 23, ,392 36,791 Turnover 1,687, ,633 3,669, ,

11 4. SEGMENT INFORMATION Operating segments, and the amounts of each segment item reported in the consolidated financial statements, are identified from the financial data and information provided regularly to the Group s chief operation decision maker ( CODM ), which are the most senior executive management, for the purposes of allocating resources to, and assessing the performance of, the Group s various lines of business and geographical locations. The Directors have organised the Group into different segments by the types of services provided. Specifically, the Group s reportable segments are as follows: 1. Traditional loans and financing provision of financing services in the PRC and Hong Kong; 2. Third party payment services provision of online third party payment service and prepaid card issuance business; 3. Online investment and technology-enabled lending services provision of internet loan services in the PRC; and 4. Others provision of social gaming services in the PRC, provision of IT solution services in Vietnam and property investment. The CODM, after considering the nature of loan financing and micro loan financing, decided that it is more appropriate to perform resource allocation and assessment of segment performance together for these two operations. These two operations were redesignated as a single segment-traditional loans and financing segment in current period. The relevant segment information for the period ended 30 September 2016 was restated accordingly. Segment revenue and results For the nine months ended 30 September 2017 (Unaudited) IT Traditional loans and financing Third party payment services Online investment and technologyenabled lending services Others Total RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 REVENUE External income and gain 425, ,791 2,885, ,392 3,669,466 Segment results 33, ,578 1,281,234 (7,621) 1,467,064 Share of results of associates 52,775 Unallocated other income 7,653 Other gain or losses 3,668 Gain on disposal of subsidiaries 408,098 Gain on deemed disposal of subsidiaries 3,303 Change in fair value of preference share of a subsidiary (181,565) Share-based payment expenses (129,785) Interest expenses (14,486) Unallocated expenses (13,430) Profit before tax 1,603, CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

12 4. SEGMENT INFORMATION (Continued) Segment revenue and results (Continued) For the nine months ended 30 September 2016 (Unaudited) 4. Traditional loans and financing Third party payment services Online investment and technologyenabled lending services Others Total RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 REVENUE External income and gain 284, , ,674 36, ,965 Segment results 58,785 90, ,430 24, ,992 Share of results of associates 36,289 Unallocated other income 9,930 Change in fair value of embedded derivative components of convertible bond (200) Gain on disposal of subsidiaries 37 Loss on deemed disposal of an associate (2,029) Loss on disposal of an associate (797) Share-based payment expenses (73,434) Unallocated expenses (3,251) Profit before tax 268,537 The accounting policies of the operating segments are the same as the Group s accounting policies described in note 2. Segment profit or loss represents profit earned by or loss from each segment without allocation of share of results of associates, unallocated other income, gain on disposal of subsidiaries, gain on deemed disposal of subsidiaries, loss on deemed disposal of an associate, loss on disposal of an associate, change in fair value of embedded derivative components of convertible bond, change in fair value of preference share of a subsidiary, central administration costs, share-based payment expenses and interest expenses. This is the measure reported to the CODM for the purposes of resource allocation and performance assessment. 5. OTHER INCOME AND GAINS OR LOSSES 2 5. For the three months ended 30 September For the nine months ended 30 September (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB 000 RMB 000 RMB 000 RMB 000 Bank interest income 367 1,836 5,015 7,195 Government grants (Note) 1,399 1,792 2,638 2,009 Interest income on convertible bonds 726 Imputed interest on corporate bonds 3,703 Fair value changes of held for trading investments 5,676 (36) Dividend income 6,884 6,884 Others 5,324 2,875 11,129 6,183 19,650 6,503 29,333 16,113 Note: Government grants in respect of encouragement of expansion of enterprise were recognized at the time the Group fulfilled the relevant granting criteria

13 6. INTEREST EXPENSES 6. For the three months ended 30 September For the nine months ended 30 September (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB 000 RMB 000 RMB 000 RMB 000 Interest on bank and other borrowings 40,693 21, ,140 67,449 Interest on corporate bonds 1,218 1,690 7,213 13,409 Interest on convertible bonds 50,950 41, ,246 66,808 92,861 64, , , PROFIT BEFORE TAX Profit before tax has been arrived at after charging/(crediting): 7. For the three months ended 30 September For the nine months ended 30 September (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB 000 RMB 000 RMB 000 RMB 000 (a) Staff costs, including directors remuneration (a) Salaries, wages and other benefits 64,591 21, ,839 60,622 Contribution to defined contribution retirement benefits scheme 5,512 5,015 13,909 7,292 Share-based payment expenses 38,275 31, ,785 73, ,378 57, , ,348 (b) Other items (b) Auditors remuneration ,811 1,520 Impairment recognised on loan receivables and other receivables 10,414 4,407 18,497 5,472 Depreciation and amortization 22,863 4,409 48,982 7,723 Net exchange difference 6,136 (1,376) 4,516 (477) Operating lease charges in respect of properties 11,566 5,369 30,612 14,540 Fair value of change of provision for financial guarantee (included in administrative and other operating expenses) 417, , CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

14 8. INCOME TAX 8. For the three months ended 30 September For the nine months ended 30 September (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB 000 RMB 000 RMB 000 RMB 000 Current tax Provision for Hong Kong Profits Tax 4,883 1,979 15,152 3,559 Provision for PRC Enterprise Income Tax (the EIT ) 180,430 17, ,688 40,145 Deferred tax ,313 20, ,840 44,622 (i) Pursuant to the rules and regulations of the Cayman Islands and the British Virgin Islands (the BVI ), the Group is not subject to any income tax in the Cayman Islands and the BVI. (i) (ii) The applicable tax rate for the subsidiaries incorporated in Hong Kong is 16.5% for the three months and nine months ended 30 September 2017 and (ii) 16.5% (iii) Profits of the subsidiaries established in the PRC are subject to PRC EIT. (iii) Under the Law of the PRC on EIT (the EIT Law ) and Implementation Regulation of EIT Law, the tax rate of the PRC subsidiaries is 25% for both periods. 25% During the three months and nine months ended 30 September 2017 and 2016, several subsidiaries established in the PRC were recognised as High Technology Enterprises and subject to PRC income tax at 15% in accordance with the EIT Law. 15% During the nine months ended 30 September 2017, PRC EIT of approximately RMB46,417,000 is arising from the gain on disposal of subsidiaries. 46,417,000 (iv) According to the requirements of the Provisional Regulations of the PRC on Land Appreciation Tax (the LAT ) effective from 1 January 1994, and the Detailed Implementation Rules on the Provisional Regulations of the PRC on LAT effective from 27 January 1995 as well, all income from the sale or transfer of land use rights, buildings and their attached facilities in the PRC is subject to LAT at progressive rates ranging from 30% to 60% of the appreciation value as calculated according to the Provisional Regulations of the PRC on LAT and its Detailed Implementation Rules. (iv) 30% 60%

15 9. DIVIDENDS The Board has resolved not to pay an interim dividend for the nine months ended 30 September 2017 (nine months ended 30 September 2016: Nil). 10. EARNINGS PER SHARE Basic earnings per share The calculation of basic earnings per share for the three months and nine months ended 30 September 2017 is based on the profit attributable to owners of the Company of RMB214,744,000 and RMB781,665,000 respectively (three months and nine months ended 30 September 2016: RMB90,905,000 and RMB217,659,000 respectively) and the weighted average of 22,104,504,473 and 21,888,553,045 ordinary shares in issue respectively during the three months and nine months ended 30 September 2017 (three months and nine months ended 30 September 2016: 20,676,108,468 and 20,105,320,072 ordinary shares respectively). Diluted earnings per share The calculation of diluted earnings per share for the three months and nine months ended 30 September 2017 is based on the profit attributable to owners of the Company of RMB214,744,000 and RMB781,665,000 respectively (three months and nine months ended 30 September 2016: RMB90,905,000 and RMB217,659,000 respectively) and the weighted average of 23,048,963,698 and 22,984,828,649 ordinary shares in issue respectively during the periods (three months and nine months ended 30 September 2016: 20,848,603,611 and 20,307,230,264 ordinary shares respectively). For the three months and nine months ended 30 September 2017 and 2016, the computation of diluted earnings per share does not assume the conversion of the Company s outstanding convertible bonds since their exercise would result in an increase in earnings per share. As at 30 September 2017, the number of new shares of the Company which may be issued pursuant to the convertible bond are 2,437,730,117 shares ,744,000781,665,000 90,905,000217,659,000 22,104,504,473 21,888,553,045 20,676,108,46820,105,320, ,744,000781,665,000 90,905,000217,659,000 23,048,963,698 22,984,828,649 20,848,603,61120,307,230,264 2,437,730, CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

16 11. RESERVES 11. Share capital Share premium Statutory reserve Retained profits Investment revaluation reserve Attributable to owners of the Company Exchange reserve Sharebased payment reserve Capital reserve Special reserve Contingent consideration reserve Equity component of convertible bonds Noncontrolling interests Total equity Total RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 At 1 January 2017 (Audited) 358,259 2,920,079 36, ,660 72, ,279 (591,729) 40, , ,583 4,195,843 45,737 4,241,580 Profit for the period 781, , ,790 1,151,455 Other comprehensive income (expense) exchange differences on translating foreign operations change in fair value of available-for-sale investments Reclassification upon disposal of available-for-sale investments Total comprehensive income (expense) for the period (52,762) (52,762) (507) (53,269) 4,152 4,152 4,152 (4,152) (4,152) (4,152) 781,665 (52,762) 728, ,283 1,098,186 Issue of shares upon exercise of share options 3, ,168 (23,121) 110, ,802 Acquisition of available-for-sale investments 2, , , ,714 Recognition of equity-settled share-based payments 129, , ,785 Acquisition of a subsidiary 16,087 16,087 Lapse of share options 1,069 (1,069) Appropriation to statutory reserve funds (2,424) 2,424 Conversion of convertible bonds 2,406 83,427 (9,140) 76,693 76,693 Issue of consideration shares 4, ,206 (155,502) Deemed disposal of subsidiaries (3) (3) Dividend paid to non-controlling shareholders (5,583) (5,583) At 30 September 2017 (Unaudited) 370,920 3,398,390 34,145 1,672,818 19, ,874 (591,732) 40, ,443 5,357, ,453 5,784,190 At 1 January 2016 (Audited) 321,642 1,665,026 33, ,524 2,892 11,549 47,300 (125,035) 40,000 23,206 2,608,210 24,376 2,632,586 Profit for the period 217, ,659 6, ,915 Other comprehensive income (expense) exchange differences on translating foreign operations change in fair value of available-for-sale investments Total comprehensive income (expense) for the period 22,241 22, ,262 (2,892) (2,892) (2,892) 217,659 (2,892) 22, ,008 6, ,285 Issue of shares upon exercise of share options ,444 (2,941) 12,106 12,106 Issue of shares for acquisition of an associate 21, , , ,658 Recognition of equity-settled share-based payments 73,434 73,434 73,434 Acquisition of a subsidiary 155, ,502 2, ,057 Lapse of share options 795 (795) Appropriation to statutory reserve funds 3,463 (3,463) Conversion of convertible bonds 124 4,190 (466) 3,848 3,848 Recognition of equity component of convertible bonds 128, , ,044 At 30 September 2016 (Unaudited) 343,926 2,349,761 36, ,515 33, ,998 (125,035) 40, , ,784 3,905,810 33,208 3,939,

17 MANAGEMENT DISCUSSION AND ANALYSIS Business Review Industry Trends With China s shift towards a consumption-driven economy and the continuous development of the FinTech industry, the PRC consumer finance sector is experiencing rapid growth. According to the PRC Consumer Finance Innovation Report () issued by National Institution for Finance & Development, as at the end of 2016, the size of the PRC consumer finance market was estimated to be RMB6 trillion. It is expected the size of the PRC consumer finance market can exceed RMB12 trillion by 2020, having considerable industrial growth potential. By leveraging on its comprehensive business qualifications and risk management capabilities, the Group s various FinTech platforms received affirmation and recognition from regulatory authorities (such as the People s Bank of China) and industry associations (such as the National Internet Finance Association of China). In the first three quarters of 2017, we further expanded and diversified our FinTech ecosystem through acquisition and established a business system comprising seven segments, namely (1) traditional loans, (2) third party payment, (3) online investment, (4) technology-enabled lending, (5) social gaming, (6) asset management and (7) insurance. By leveraging on our ever-growing FinTech service ecosystem, we believe that the Company will maintain and solidify its market leading position. Operational Highlights Third party payment UCF Pay Limited* ( UCF Pay ) has maintained its leading position in the online third party payment service sector in China. The total transaction volume in the first three quarters of 2017 reached RMB428.8 billion, representing a growth of more than 230% period-on-period. The monthly transaction volume in 2017 made a number of historic highs, of which the transaction volume in September exceeded RMB70.0 billion. As of the end of September 2017, UCF Pay s accumulated active users reached 4.31 million. UCF Pay actively explored payment innovation, researched the inner needs of financial industry, and is currently offering integrated solutions including payment integration, cross-border payment, direct banking, banks fund custody solutions, online lending cloud platform, industrial chain finance and cloud wallet service. * the English translation of the Chinese names or words is for information purpose only and should not be regarded as the official English translation of such Chinese names or words (National Institution for Finance & Development) 6 12 (1)(2) (3) (4)(5)(6) (7) 4,288230% * 16 CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

18 MANAGEMENT DISCUSSION AND ANALYSIS (Continued) Business Review (Continued) Operational Highlights (Continued) Third party payment (Continued) Shanghai Jifu Xinxi Jishu Fuwu Co., Ltd.* ( Shanghai Jifu ), our mobile point of sale ( POS ) provider which is 35% owned by the Group, recorded a total transaction volume of RMB1,190.9 billion in the first three quarters of 2017, representing a growth of 162% periodon-period. Total registered users reached million as of the end of September 2017, representing a growth of 6.23 million new registered users as compared to that at the end of The accumulated active users reached 5.81 million as of the end of September 2017, representing a growth of 2.57 million active users as compared to that at the end of Shanghai Jifu was focused on promoting DianPOS /MPOS and Point POSPOS business in the first three quarters of 2017 and received positive market feedback, resulting in a substantial growth in both its transaction volume and number of new users. POS 35% 11, % 1, MPOSPOS Amigo Technologies Joint Stock Company ( Amigo Technologies ) (in which the Group holds a 51% interest), our payment services provider in Vietnam, recorded total transaction volume of VND113 trillion in the first three quarters of 2017, representing a growth of 28% period-on-period. In the first three quarters of 2017, Amigo Technologies total number of transactions was million, representing a growth of 53% as compared to the first three quarters of Such strong growth was attributable to the significant contribution from cash-on-delivery (COD) services. In addition, Amigo Technologies newly launched collection services for public administrative agencies and tax departments have started to see a month-on-month increase in transaction volume. A m i g o Technologies Joint Stock CompanyAmigo Technologies 51% 11328% Amigo Technologies 9,641 53% (COD) Amigo Technologies * the English translation of the Chinese names or words is for information purpose only and should not be regarded as the official English translation of such Chinese names or words *

19 MANAGEMENT DISCUSSION AND ANALYSIS (Continued) Business Review (Continued) Operational Highlights (Continued) Online investment and technology-enabled lending In the first three quarters of 2017, First House Loan achieved total transaction volume of RMB12.3 billion. During the period under review, with continuing growth in the number of new customers, the existing businesses of First House Loan made steady progress. In terms of product development, First House Loan successfully upgraded its personal credit products and launched a new product targeting financing demands of quality companies, creating growth opportunities. 123 Weshare, which is an online consumer lending platform, recorded a significant growth in the first three quarters of As of the end of September 2017, Weshare had more than 20 million accumulated registered users. The accumulated transaction volume reached more than RMB40 billion in the first three quarters of In the first three quarters of 2017, Weshare developed installment loan product with a higher ticket size, based on Shandian Jiekuan, its small lending online platform, as well as robo-adviser and products in distribution platforms. Meanwhile, the financial cloud platform, which is focused on big data-based risk management, has officially provided services to clients and has in-depth collaboration with leading companies such as 360 to develop consumer finance products. For market promotion, Weshare established the digitalized marketing system which relied on customer relationship and the operation system for managing the full workflow of users life cycle. At the same time, it established user relationship chain by leveraging on member-get-member (MGM) s social finance in order to lay a solid foundation for customer acquisition with high efficiency and low cost and sizable customer operation. 2, MGM 18 CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

20 MANAGEMENT DISCUSSION AND ANALYSIS (Continued) Business Review (Continued) Strategic Highlights On 29 September 2017, the Group, together with a consortium, acquired 63.43% of the issued shares in Ping An Securities Group (Holdings) Limited ( Ping An Securities, stock code: 231), a company listed on the Stock Exchange, and as a result the Group is beneficially interested in 23.47% of Ping An Securities. Ping An Securities Limited, a subsidiary of Ping An Securities, is a corporation registered to conduct Type 1 (dealing in securities), Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance, Chapter 571 of the laws of Hong Kong (the SFO ). The Group may consider generating synergy through business collaboration with Ping An Securities in developing FinTech services in the Hong Kong market. Such investment represents an opportunity for the Group to tap into the securities market in Hong Kong, with a view to establishing its presence in the Hong Kong market %23.47% 571 Financial Review Revenue For the nine months ended 30 September 2017, the Group reported revenue of approximately RMB3,669.5 million, an increase of 477% as compared to approximately RMB635.9 million for the corresponding period in The increase was primarily attributable to the growth in revenues from online investment and technologyenabled lending services, driven by a strong growth in transaction volume on our key online consumer lending platform Weshare which was acquired in November 2016, and a significant growth in payment transaction volume on our core third party payment platform UCF Pay, as well as a healthy growth in interest and financial consultancy service income driven by an increase in the average size of our loan portfolio during the nine months ended 30 September The following table sets forth the Group s revenues by segment of business for the nine months ended 30 September 2017 and ,669,500, ,900,000477% For the nine months ended 30 September % of total % of total RMB 000 revenues RMB 000 revenues Traditional loan and financing 425, , Third party payment services 255, , Online investment and technology-enabled lending services 2,885, , Other 102, , Total 3,669, ,

21 MANAGEMENT DISCUSSION AND ANALYSIS (Continued) Financial Review (Continued) Traditional loans and financing income Traditional loans and financing income mainly included interest income, financial consultancy service income and gain on transfer of rights on interest on loan receivables, which were derived from the Group s loan financing services including entrusted loans, pawn loans and other loans secured with assets or guarantees. It generated approximately 11.6% of the Group s total revenues and recorded an increase of approximately 49.8% to approximately RMB425.9 million for the nine months ended 30 September The significant increase in traditional loans and financing income was primarily due to the increase in the average size of our loan portfolio during the nine months ended 30 September 2017 as we had deployed our excess capital raised from capital raising activities for short-term lending before investment opportunities were subsequently identified and financed. 11.6% 49.8% 425,900,000 Third party payment service income The third party payment business, which included the provision of online payment transactions, payment system consultancy and related services of UCF Pay and payment transaction service of Amigo Technologies, generated revenues of approximately RMB255.8 million for the nine months ended 30 September 2017, an increase of approximately 99.6% period-on-period. It represented approximately 7.0% of the Group s total revenues, of which UCF Pay reported revenue of approximately RMB249 million and Amigo Technologies reported revenue of approximately RMB6.8 million. The increase reflected a significant growth in the total transaction volume on our core third party payment platform UCF Pay to RMB428.5 billion for the nine months ended 30 September 2017, an increase of approximately 238% period-on-period. Amigo Technologies 255,800, % 7.0% 249,000,000Amigo Technologies 6,800,000 4, % 20 CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

22 MANAGEMENT DISCUSSION AND ANALYSIS (Continued) Financial Review (Continued) Online investment and technology-enabled lending service income Our online investment and technology-enabled lending service income mainly included income generated by our online property loan platform First House Loan, online lending platform Financial Workshop, as well as our 48%-owned online consumer lending platform Weshare. For the nine months ended 30 September 2017, the Group s online investment and technology-enabled lending business recorded revenues of approximately RMB2,885.3 million, representing approximately a 14.5-fold increase period-on-period. It represented approximately 78.6% of the Group s total revenues, of which Financial Workshop, First House Loan and Weshare reported revenues of approximately RMB19.8 million, RMB72.9 million and RMB2,775.3 million, respectively. The increase in the business segment s revenues was driven by continued strong growth in transaction volumes across the online consumer lending platform Weshare. 48% 2,885,300, % 19,800,000 72,900,0002,775,300,000 Others Others mainly included social gaming service income and IT solution income generated by our 51%-owned subsidiary, Shenzhen Qiyuan Tianxia Technology Company Limited, and 51%-owned subsidiary, Amigo Technologies, respectively. The social gaming business contributed approximately RMB31.2 million of revenues to the Group while IT solution business contributed approximately RMB60.6 million of revenues to the Group for the nine months ended 30 September % 51% Amigo Technologies IT 31,200,000IT 60,600,

23 MANAGEMENT DISCUSSION AND ANALYSIS (Continued) Financial Review (Continued) Interest expenses Interest expenses mainly comprised interest due on bank and other loans, Hong Kong ( HK ) dollar-denominated convertible bonds, United States ( US ) dollar-denominated convertible bonds, RMBdenominated corporate bonds and HK dollar-denominated corporate bonds. The Group s interest expenses increased by approximately 90% period-on-period to approximately RMB280.6 million for the nine months ended 30 September As at 30 September 2017, the Group s external funding increased by approximately 47.8% period-on-period to approximately RMB3,278.1 million, of which bank and other borrowings amounted to approximately RMB1,860.2 million (30 September 2016: approximately RMB900.9 million) and corporate bonds and convertible bonds amounted to approximately RMB1,417.9 million (30 September 2016: RMB1,317.1 million). Other income and gains or losses Other income and gain or loss mainly comprised bank interest income, dividend income and government grants. Handling charges, administrative and other operating expenses The Group s handling charges, administrative and other operating expenses primarily comprised salaries and staff welfare, intermediary handling charges for third party payment services, bank and financing charges, sales and marketing related expenses, provision for financial guarantee and rental expenses. Due to the significant increase in the scale and staff headcount of our online investment and technology-enabled lending and third party payment businesses and provision for financial guarantee amounted to RMB944.5 million, the Group s handling charges, administrative and other operating expenses increased by approximately 905.3% to approximately RMB1,967.7 million for the nine months ended 30 September 2017 period-on-period. Provision for financial guarantee represented provision made for loan amount lending out through the loan facilitation platform, namely Weshare. The amount of provision was computed based on historical pattern of default loans. 90% 280,600, % 3,278,100,000 1,860,200, ,900,000 1,417,900,000 1,317,100, ,500, % 1,967,700, CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

24 MANAGEMENT DISCUSSION AND ANALYSIS (Continued) Financial Review (Continued) Share-based payment expenses Share-based payment expenses of the Group for the nine months ended 30 September 2017 increased by approximately 76.7% to approximately RMB129.8 million. The increase in such expenses represented the fair value of all share options granted in July 2016, November 2016, December 2016, and March 2017 respectively over the vesting periods. Share of results of associates Share of results of associates for the nine months ended 30 September 2017 increased to approximately RMB52.8 million. The period-on-period increase was mainly attributable to the contribution from our 35% equity interest in Shanghai Jifu. Profit for the period The profit for the nine months ended 30 September 2017 was approximately RMB1,151.5 million, representing an increase of approximately 414% period-on-period as compared to approximately RMB223.9 million for the nine months ended 30 September The increase was mainly due to a gain on disposal of subsidiaries of approximately RMB408.1 million and a significant increase in turnover of approximately RMB3,033.5 million despite an increase in interest expenses of approximately RMB132.9 million, handling charges, administrative and other operating expenses of approximately RMB1,772.0 million, share-based payment expenses of approximately RMB56.4 million, change in fair value of preference shares of a subsidiary of approximately RMB181.6 million and income tax of approximately RMB407.2 million. Profit attributable to owners of the Company Profit attributable to owners of the Company for the nine months ended 30 September 2017 was approximately RMB781.7 million, an increase of approximately 259% as compared to approximately RMB217.7 million for the nine months ended 30 September Excluding the non-recurring gain on disposal of subsidiaries, gain on deemed disposal of subsidiaries, loss on deemed disposal of an associate, loss on disposal of an associate, share-based payment expenses and certain other non-cash items, profit attributable to owners of the Company under non-generally accepted accounting principles ( GAAP ) for the nine months ended 30 September 2017 was approximately RMB633.6 million, an increase of approximately 115% as compared to approximately RMB294.1 million for the nine months ended 30 September % 129,800,000 52,800,000 35% 1,151,500, ,900, % 408,100,000 3,033,500, ,900,000 1,772,000,000 56,400, ,600, ,200, ,700, ,700,000259% 633,600, ,100, %

25 MANAGEMENT DISCUSSION AND ANALYSIS (Continued) Financial Review (Continued) Reconciliations of non-gaap measures to the nearest comparable GAAP measures The table below sets forth a reconciliation of profit attributable to owners of the Company to non-gaap profit attributable to owners of the Company for the period indicated: For the nine months ended 30 September (Unaudited) (Unaudited) RMB 000 RMB 000 Profit attributable to owners of the Company 781, ,659 Adjustments for: Share-based payment expenses 129,785 73,434 Gain on disposal of subsidiaries (408,098) (37) Income tax arising from gain on disposal of subsidiaries 46,417 Gain on deemed disposal of subsidiaries (3,303) Loss on deemed disposal of an associate 2,029 Loss on disposal of an associate 797 Change in fair value of embedded derivative components of convertible bonds 200 Change in fair value of preference share of a 48%-owned subsidiary 48% 87,151 Non-GAAP profit attributable to owners of the Company 633, ,082 The Company s management believes that the non-gaap financial measures provide investors with useful supplementary information to assess the performance of the Group s core operations by excluding certain non-cash items and certain impact of acquisition or disposal transactions. 24 CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

26 OUTLOOK AND STRATEGIES Third party payment UCF Pay will continue to expand the following businesses proactively: For custody solutions, it will assist banks to further strengthen and improve the P2P fund custody solutions system, while at the same time expand and establish cooperation with more commercial banks for their custody business technical services; For cross-border payment services, it will further integrate its cross-border business resources and develop products such as cross-border collections and crossborder financing based on existing offerings. At the same time, by centering on the layout of One Belt One Road, UCF Pay will strengthen the business development such as cross-border trade; For integration payment, it will develop and market its products through developing its merchant network, agent cooperation and bank cooperation. Subsequently, new supporting products will be developed and rolled out to further expand its business development and bring in more merchants and distributors; and For direct banking, it will continue to increase the number of banks it serves, quickly capture the small and mediumsized bank market shares, continue to expand product portfolio, introduce more new technological functions to meet users various financial needs. Shanghai Jifu will focus on promoting smart POS, a product that has been launched after two years of research and development. Smart POS integrates convenience services and integration payment as a whole. Shanghai Jifu will take it as its core business, capture its growth potential in payment market and explore customers financial needs to offer comprehensive financial services for small and micro businesses, thereby transiting itself from the payment segment to the financial sector, and completing the transformation from payment to payment+. POSPOS

27 OUTLOOK AND STRATEGIES (Continued) Third party payment (Continued) Amigo Technologies will focus on its application for third-party payment licence and cooperation with banks to roll out new products and services. At the same time, Amigo Technologies will try to boost transaction volume from collection services for public administrative agencies by launching staff training programs in branches across 63 provinces in Vietnam. Online investment and technology-enabled lending First House Loan will continue to focus on the financing demands of key customer groups and further strengthen its risk management core capabilities. In terms of business development, it will expand into more innovative real estate financial services categories such as new house market, leasehold market and real estate asset management in order to meet more diversified customer financing needs. Amigo Technologies Amigo Technologies 63 Weshare will set up diversified product layout by relying on its star product, Shandian Jiekuan, to construct a triune product business system focusing on micro loans + large amount installment + data distribution platform, expand user frequency spectrum and explore user lifecycle to provide users with diversified services. It will also introduce the roboadvisors to form a closed-loop financial informatization. For financial cloud service, Weshare will continue to give into full play to its superiority in delivering technology, risk control and operating capabilities to provide core value services for more industry-leading customers. Meanwhile, based on the leading advantages of small fast loans in China, Weshare will try to expand its footprints to countries and regions in Southeast Asia with growth potential CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017

28 LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE During the nine months ended 30 September 2017, the Group s source of funds was mainly from cash generated from operations. As at 30 September 2017, the Group had bank balances and cash of approximately RMB1,028.3 million (31 December 2016: approximately RMB1,233.3 million), of which approximately 86.8%, approximately 1.1%, approximately 0.3%, approximately 0.7% and approximately 11.1% were denominated in RMB, US dollars, SGD, VND and HKD respectively. 1,028,300,000 1,233,300, % 1.1%0.3%0.7%11.1% As at 30 September 2017, the Group s interest-bearing borrowings, which mainly comprised corporate bonds, convertible bonds, bank and other borrowings, amounted to approximately RMB3,278.1 million (31 December 2016: approximately RMB3,367.8 million). The gearing ratio, representing the ratio of total borrowings to total assets of the Group, was 0.25 as at 30 September 2017 (31 December 2016: 0.38). Hence, the Group has sufficient financial ability to meet its redemption obligations under the convertible bonds. 3,278,100,000 3,367,800, During the period under review, the Group did not use any financial instruments for hedging purposes. OTHER INFORMATION Change of Company Name, Change of Stock Short Names, Company Logo and Company Website Subsequent to the passing of a special resolution in relation to the change of the English name of the Company from Credit China FinTech Holdings Limited to Chong Sing Holdings FinTech Group Limited and its dual foreign name in Chinese from to (the Change of Company Name ) by the shareholders of the Company (the Shareholders ) at an extraordinary general meeting of the Company (the EGM ) held on 27 July 2017, a Certificate of Incorporation on Change of Name was issued by the Registrar of Companies in the Cayman Islands certifying that the Change of Company Name took effect on 27 July Credit China FinTech Holdings Limited Chong Sing Holdings FinTech Group Limited

29 OTHER INFORMATION (Continued) The stock short names for trading in the shares of the Company on the Stock Exchange was changed from CREDIT CHINA to CHONGSING HLDGS in English and from to in Chinese with effect from 29 August The stock code of the Company remains unchanged. CREDIT CHINA CHONGSING HLDGS The logo of the Company was changed from to with effect from 24 August T h e w e b s i t e o f t h e C o m p a n y w a s c h a n g e d f r o m to with effect from 24 August Please refer to the Company s announcement dated 24 August 2017 for further details. Directors and Chief Executive s Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations As at 30 September 2017, the interests and short positions of the Directors and the chief executive of the Company in the shares, underlying shares and debentures of the Company and its associated corporations (within the meaning of Part XV of the SFO), which were required: (a) to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they were taken or deemed to have under such provisions of the SFO); or (b) pursuant to section 352 of the SFO, to be recorded in the register referred to therein; or (c) pursuant to Rules 5.46 to 5.67 of the GEM Listing Rules, to be notified to the Company and the Stock Exchange were as follows: XV (a)xv7 8 (b)352 (c) CHONG SING HOLDINGS FINTECH GROUP LIMITED THIRD QUARTERLY REPORT 2017