NASDAQ Ticker : ATIF
 
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Letter To Shareholders

2019-07-26

Dear distinguished shareholders and clients of ATIF:

Recently, we found that several commonly used stock speculation applications had disclosed the sharp decline in the number of original shareholders of ATIF Holdings Limited(hereinafter referred to as "ATIF" or "the Company"). We contacted the securities companies at the first time and requested for an immediate investigation on the situation. ATIF reserves the right to pursue the legal liability. On behalf of the company, I solemnly clarify that the company's major three shareholders did not reduce their holdings. On the contrary, they will unswervingly accompany ATIF to grow and develop!

ATIF was established in 2015 and became a public company in 2018. The Company spent less than 3 years started from the beginning of operation to the landing in the NASDAQ(code: ATIF), which represents that ATIF is an excellent company with a professional operation team and a broad market prospect and ATIF has entered a new milestone since then. As a company dedicated to providing international financial advisory services that are consistent with laws, rules and guidelines to SMEs in Asia, ATIF's core business is to provide clients with going public overseas consulting services that are consistent with laws. Since its inception, it has successfully advised several enterprises in China to go public in the U.S. and has been  praised as "listing professionals" by many well-known media.

As of the present, there are about 70 million registered enterprises in Mainland China, of which only approximately  3600 are listed within China. In the face of the strict listing requirements of the Hong Kong Stock Exchange, the Shanghai Stock Exchange and the Shenzhen Stock Exchange, the vast majority of enterprises are far behind in listing and cannot enjoy the benefits of equity financing. More than 90% of the enterprises are forced to choose debt financing whose average interest rate is as high as 20%. All of the operations are used to repay interest, which should be able to achieve better development.

In the difficult capital environment in China, many excellent enterprises have begun to actively seek out for overseas listing. Since then, equity financing has become a hot topic in the development of Chinese enterprises.

However, since the Chinese companies generally lack understanding of international capital markets, the non-standardization and uncertainty of the equity investment market, the uneven quality of available investment projects, and the difficulty in finalizing financing arrangements have caused some enterprises with urgent need of financing to face fundraising challenges. In addition, most SMEs in need of financing have fewer opportunities to connect with investors because of the lack of standardized and professional services. ATIF saw huge market demand in advance, set accurate strategic goals, and set up a group of professional service teams to provide customers with quality service that was repeatedly word of mouth, thus achieving its rapid development.

In 2019, I have full confidence in ATIF

First, ATIF officially announced the launch of a new investment and financing analysis reporting business (the “Reporting Business”) in July 19, 2019. We had a professional investment and financing team including law firms, audit companies, market research institutions, and IR media companies to provide comprehensive Reporting Business to ensure our service quality. The Company is committed to providing investors with objective and impartial due diligence report, so that investors could accurately and comprehensively understand the company's market positioning and investment opportunities, and assist in risk control. The investment and financing analysis report business is divided into two aspects---investment analysis report service and financing analysis report service. For investors, the investment analysis report service could help them analyze and explore the investment value of venture companies in a comprehensive and multi-perspective manner to aid in decision making and minimize investment risks. For SMEs, the financing analysis report service could be be used for self-diagnosis and financial planning, thereby increasing the options available for obtaining equity financing.

I believe, while ATIF guarantees the continued development of its original business, the newly launched Reporting Business could not only enrich the company's diversified business system, but also bring real and considerable benefits to the Company. More importantly, Reporting Business could fill the gaps in service in China and even in Asia, regulates the current chaotic investment and financing market, and has unprecedented innovation significance for the formation of a standardized investment and financing service system. As a Nasdaq-listed company, ATIF's brand influence will ensure that every investment and financing analysis report is professional and authoritative that could provide a professional and appropriate solutions to our customers.

Secondly, in the second half of this year, ATIF will focus on establishing branches or cooperative institutions in Hong Kong, Singapore, Malaysia, Thailand, Vietnam, etc., and establish an international business team and service team to fully expand our service scope in Asia. The above-mentioned regional market has great potential and professional institutions are seriously lacking. We are very confident to bring our company philosophy and professional services to local enterprises, help them understand the US capital market, and promote the superiority and multi-level of the US capital market.  We are expanding and enriching our service market and customer base while assisting companies in need to develop international equity financing and go public in the US.

Third, we believe that our advantages will be more prominent after we have more comprehensive qualifications. Besides the original US-listing consulting services, I am exciting to introduce the coming listing advisory service business in the Hong Kong capital market this year. At the same time, the Company will realize the possession of sponsor license and the internet brokerage license through investment, mergers and acquisitions of Hong Kong and US brokers to extend the scope of our services through the diversified development of the supporting company. By establishing the one-stop listing service and the multi-directional extension, ATIF will eventually become an international comprehensive service organization in the financial industry.

At last, in 2019, we will actively improve the service system and human resources structure, focusing on human resource allocation and team building, and lay a solid talent foundation for the company's sustainable development and internationalization goals. The Company will research and optimize the innovative compensation system and system of human resources, for the purpose of creating a suitable talent development and increase system, absorbing more professional and international talents to harvest together with us.

The Company landed on Nasdaq in May this year, and the new mileage is just getting started. It takes time to settle down in business development. Well-known Chinese stocks in US stock market such as Alibaba, Baidu and Tencent have all took more than 20 years to develop into today's strength, therefore the short-term fluctuations of price shall not represent the future and real value of a company. As a mature and rational investor, I believe that we should look forward to the bright future and support for ATIF with confidence.

Lastly, I would like to thank all the shareholders and the board of directors for their trust and support to appointed me as the CEO of the Company for fully responsibility of the operation and management. I am fully confident in leading the company to create a bigger future and I will follow the wholehearted and courageous work spirit to lead the company forward and take my duty and mission to let the Company become a world-class creative financial service organization!

Liu Jun

Chief Executive Officer

ATIF Holdings Limited

July 24th, 2019