Easyknit International : Circular - MAJOR TRANSACTION - DISPOSAL OF SECURITIES OF INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED

If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your licensed securities dealer, registered institution in securities, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your shares in Easyknit International Holdings Limited, you should at once hand this circular to the purchaser or transferee or to the bank, licensed securities dealer, registered institution in securities, or other agent through whom the sale or transfer was effected for transmission to the purchaser or transferee.

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

EASYKNIT INTERNATIONAL HOLDINGS LIMITED

永義國際集團有限公 司*

(incorporated in Bermuda with limited liability)

(Stock Code: 1218) MAJOR TRANSACTION DISPOSAL OF SECURITIES OF INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED

18 January 2017

* for identification purposes only

Page

DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 LETTER FROM THE BOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 APPENDIX I - FINANCIAL INFORMATION OF THE GROUP . . . . . . . . . . . I-1 APPENDIX II - GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1

In this circular, unless the contents otherwise requires, the following expressions have the meanings as set out below:

"Aggregate Disposals" the aggregate transactions of the Disposal and the

Previous DT Disposal

"Board" the board of Directors

"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 Company, through its wholly-owned subsidiary for a total of 12,007,100 ICBC Shares during the period from 12 December 2016 to 20 December 2016 for a gross sale proceeds of approximately HK$56,311,000

"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

"ICBC" Industrial and Commercial Bank of China Limited, 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: 1398)

"ICBC Share(s)" shares with a par value of HK$1.00 each in the share capital of ICBC

"Independent Third Party" third party(ies) independent of the Company and

connected persons of the Company

"Latest Practicable Date" 16 January 2017, being the latest practicable date

prior to the printing of this circular for ascertaining information for inclusion in this circular

"Listing Rules" the Rules Governing the Listing of Securities on the Stock Exchange

"major transaction" as defined in the Listing Rules

"percentage ratios" as defined in the Listing Rules

"PRC" the People's Republic of China

"Previous DT Disposal" the disposal of 6,920,400 ICBC Shares on 23 June 2016

for an aggregate principal amount of approximately HK$30,726,000 constitutes a discloseable transaction for the Company, details were set out in the Company's announcement dated 4 July 2016

"RMB" Renminbi, the lawful currency of the PRC

"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