K&P International : Profit Warning

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.

K & P International Holdings Limited

堅堅堅堅寶寶寶寶國國國國際際際際控控控控股股股股有有有有限限限限公公公公司司司司*

(Incorporated in Bermuda with limited liability)

(Stock Code: 675) PROFIT WARNING

This announcement is made by the Company pursuant to the Inside Information Provisions under Part XIVA of the SFO and Rule 13.09(2)(a) of the Listing Rules.

The Board wishes to inform the Shareholders and potential investors that the Group is expected to record a loss before tax in the region of not more than approximately HK$15 million, as compared with a profit before tax for the year ended 31 December 2015.

The information contained in this announcement is only based on the Company's preliminary evaluation of the unaudited consolidated management accounts of the Group, which have not been audited or reviewed by the Company's auditor.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

This announcement is made by K & P International Holdings Limited (the "Company", together with its subsidiaries shall be referred to as the "Group") pursuant to the Inside Information Provisions (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong) (the "SFO") and Rule 13.09(2)(a) of the Listing Rules.

The board of directors (the "Board") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that, upon carrying out of a strategic review of the Group's design, manufacture and sale of consumer electronic products (comprising time, weather forecasting and other products) business, which had been making losses for the years ended 31 December 2014, 2015 and 2016, the Board resolved to make an one-off provision in the region of approximately HK$15 million in respect thereof for the year ended 31 December 2016, such provision principally comprise of relevant slow-moving inventory, machineries and decoration and fixtures as well as staff compensations such as long service payment.

In view of the above and based on a preliminary review of the consolidated management accounts of the Group, the Group is expected to record a loss before tax in the region of not more than approximately HK$15 million, as compared with a profit before tax for the year ended 31 December 2015.

The Company is still in the process of finalising the consolidated financial statements of the Group for the year ended 31 December 2016. Thus, the information contained in this announcement is only based on a preliminary evaluation of the unaudited consolidated management accounts of the Group for the year ended 31 December 2016, which have not been audited or reviewed by the Company's auditor. Financial information and other details of the Group for the year ended 31 December 2016 will be disclosed in the Company's annual results announcement for that period which is expected to be published in March 2017.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

K & P International Holdings Limited

Lai Pei Wor

Chairman

Hong Kong, 25 January 2017

As at the date of this announcement, the Board comprises Messrs. Lai Pei Wor and Chan Yau Wah (being executive directors) and Messrs. Kung Fan Cheong, Leung Man Kay and Li Yuen Kwan, Joseph (being independent non-executive directors).

* For identification purpose only