KNT : VOLUNTARY ANNOUNCEMENT - POTENTIAL PLAN TO EXPLORE FOR A NEW PRODUCTION FACILITY IN SOUTH-EAST ASIA

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KNT HOLDINGS LIMITED

嘉 藝 控 股 有 限 公 司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1025)

VOLUNTARY ANNOUNCEMENT

POTENTIAL PLAN TO EXPLORE

FOR A NEW PRODUCTION FACILITY IN SOUTH-EAST ASIA

This announcement is made by KNT Holdings Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis. The purpose of this announcement is to keep the shareholders and potential investors of the Company informed of the latest business development of the Group.

Unless otherwise defined herein, terms and expressions used in this announcement shall have the same meanings as those defined in the prospectus (the "Prospectus") issued by the Company dated 15 February 2019.

The board of directors (the "Board") of the Company has noted that despite progress being made recently, the trade talk between the U.S. and the PRC will continue into 2020. To the best knowledge of the Board, the current trade tariff imposes a 15% tariff on bridesmaid dresses, bridal gowns and special occasion dresses manufactured in the PRC. Given the uncertainties in the development of the potential trade war between the U.S. and the PRC, and the Group delivers a substantial amount of its products to its customers in the U.S. and Europe, the Board intends to explore a suitable location in South-East Asia to establish a new production facility in order to diversify its risk exposed to the trade tariff between the U.S. and the PRC.

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The Company wishes to emphasise that the potential plan to establish a new production facility in South-East Asia may or may not be implemented. Shareholders and potential investors are advised to exercise caution when dealing the Shares.

The Board collectively and individually accepts responsibility for the accuracy of this announcement.

By Order of the Board

KNT Holdings Limited

Chong Sik

Chairman and Executive Director

Hong Kong, 20 December 2019

As at the date of this announcement, the Board comprises three executive Directors, namely, Mr. Chong Sik, Mr. Chong Pun and Mr. Lam Chi Yuen; and four independent non-executive Directors, namely, Mr. Leung Martin Oh Man, Mr. Lau Koong Yep, Mr. Yuen King Sum and Mr. Lau Kwok Fan.

• For identification purposes only

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