Easyknit International : Announcement - DISCLOSEABLE TRANSACTION - DISPOSAL OF SECURITIES OF CHINA CONSTRUCTION BANK CORPORATION

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, 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 announcement.

EASYKNIT INTERNATIONAL HOLDINGS LIMITED 永義國際集團有限公司 *

(incorporated in Bermuda with limited liability)

(Stock Code: 1218) DISCLOSEABLE TRANSACTION DISPOSAL OF SECURITIES OF CHINA CONSTRUCTION BANK CORPORATION

The Group disposed on-market a total of 9,594,620 CCB Shares in a series of transactions conducted during the period from 20 December 2016 to 29 December 2016, at an average price of HK$5.77 per CCB Share for an aggregate gross sale proceeds of approximately HK$55,396,000 (excluding transaction costs).

The Disposal standing alone constitutes a discloseable transaction under Rule 14.06(2) of the Listing Rules as the certain applicable percentage ratios of the Disposal exceeds 5% but are less than 25%. The Disposal is therefore subject to the reporting and announcement requirements under the Listing Rules. The Disposal when aggregated with the Previous Disposals still remains as a major transaction under the Listing Rules. Since the Company has complied with the major transaction requirements in respect of the completed transaction as set out in the Company's announcement dated 12 July 2016, the Company is not required to reclassify the Disposal by aggregating it with Previous Disposals.

THE DISPOSAL

The Group disposed on-market a total of 9,594,620 CCB Shares in a series of transactions conducted during the period from 20 December 2016 to 29 December 2016, at an average price of HK$5.77 per CCB Share for an aggregate gross sale proceeds of approximately HK$55,396,000 (excluding transaction costs).

As the Disposal was made on the market, the Company is not aware of the identities of the purchasers of the CCB Shares. To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiries, each of the purchasers of the CCB Shares and their ultimate beneficial owners are Independent Third party.

Assets disposed

The Group disposed of 9,594,620 CCB Shares, representing approximately 0.0038% of the issued share capital of CCB (based on the 250,010,977,486 CCB Shares as at 31 December 2016 according to publicly available information).

Consideration

The aggregate gross sale proceeds of the Disposal is approximately HK$55,396,000 (excluding transaction costs), which is receivable in cash on settlement. The price for the Disposal represented the market price of the CCB Shares at the time of the Disposal.

* for identification purposes only

REASONS FOR AND BENEFITS OF THE DISPOSAL

The Group's principal businesses are property investment, property development, securities investment and money lending business.

The purpose of the Disposal is to obtain a balanced securities investment portfolio. As a result of the Disposal, the Group is expected to recognize a gain of approximately HK$5,393,000 which is calculated on the basis of the difference between the acquisition price and the disposal price (exclusive of the transaction costs). The Group intends to use the proceeds of the Disposal for general working capital.

The Disposal was made at market price and the Directors (including the independent non-executive Directors) are of the view that the Disposal will enhance the liquidity of the Company, was fair and reasonable, on normal commercial terms and in the interests of the Company and its Shareholders as a whole.

INFORMATION ON CCB

According to publicly available information, CCB is a joint-stock company incorporated in the PRC with limited liability and the H shares of which are listed on the main board of the Stock Exchange (Stock Code: 939). According to its company profile made available on the internet, CCB is principally engaged in the provision of corporate and personal banking services, conducting treasury business, the provision of asset management, trustee, finance leasing, investment banking, insurance and other financial services.

The following information is extracted from the third quarter and annual reports of CCB:

For the nine months ended 30 September	For the year ended 31 December
2016	2015	2014
RMB million	RMB million	RMB million
Revenue	428,482	586,687	556,740
Profit before taxation	246,876	298,497	299,086
Net profit after taxation Attributable to shareholders of CCB	193,835	228,145	227,830
Total assets	20,500,683	18,349,489	16,744,093

GENERAL INFORMATION

The Disposal standing alone constitutes a discloseable transaction under Rule 14.06(2) of the Listing Rules as the certain applicable percentage ratios of the Disposal exceeds 5% but are less than 25%. The Disposal is therefore subject to the reporting and announcement requirements under the Listing Rules. The Disposal when aggregated with the Previous Disposals still remains as a major transaction under the Listing Rules. Since the Company has complied with the major transaction requirements in respect of the completed transaction as set out in the Company's announcement dated 12 July 2016, the Company is not required to reclassify the Disposal by aggregating it with Previous Disposals.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following terms have the following meanings:

"Board"

the board of Directors

"CCB"	China Construction Bank Corporation, a joint-stock company incorporated in the PRC with limited liability, the H shares of which are listed on the main board of the Stock Exchange (Stock Code: 939)
"CCB Share(s)"	overseas listed foreign shares with a par value of RMB1.00 each in the share capital of CCB, listed on the main board of the Stock Exchange and traded in Hong Kong dollars

"Company"

Easyknit International Holdings Limited, an exempted company incorporated in Bermuda with limited liability, the shares of which are listed on the main board of Stock Exchange

"Director(s)"

director(s) of the Company

"discloseable transaction"

as defined in the Listing Rules

"Disposal"	the disposal by the Group for a total of 9,594,620 CCB Shares during the period from 20 December 2016 to 29 December 2016 for a gross sale proceeds of approximately HK$55,396,000
"Group"	the Company and its subsidiaries
"HK$"	Hong Kong dollars, the lawful currency of Hong Kong
"Hong Kong"	the Hong Kong Special Administrative Region of the PRC
"Independent Third Party"	third party(ies) independent of the Company and connected persons of the Company
"Listing Rules"	the Rules Governing the Listing of Securities on the Stock Exchange
"percentage ratios"	as defined in the Listing Rules
"PRC"	the People's Republic of China
"Previous Disposals"	the aggregate disposals by the Group for a total 24,001,200 CCB Shares during the period from 10 June 2016 to 8 July 2016 for a gross sale proceeds of approximately HK$122,391,000, and expected to recognize a gain of HK$2,395,000, details are set out in the Company's announcement dated 12 July 2016
"Share(s)"	ordinary share(s) of HK$0.10 each in the share capital of the Company

"Shareholder(s)"	holder(s) of Shares
"Stock Exchange"	The Stock Exchange of Hong Kong Limited

"%"

per cent

By Order of the Board

Easyknit International Holdings Limited Kwong Jimmy Cheung Tim

President and Chief Executive Officer

Hong Kong, 5 January 2017

As at the date hereof, the Board comprises Mr. Kwong Jimmy Cheung Tim, Ms. Lui Yuk Chu and Ms. Koon Ho Yan Candy as executive directors; Mr. Tse Wing Chiu Ricky and Mr. Lai Law Kau as non-executive directors; and Mr. Tsui Chun Kong, Mr. Jong Koon Sang and Mr. Hon Tam Chun as independent non-executive directors.