King Flair International : SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO USE OF PROCEEDS DISCLOSED IN THE ANNUAL REPORT

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.

King's Flair International (Holdings) Limited

科 勁 國 際（控 股）有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 6822)

SUPPLEMENTAL ANNOUNCEMENT

IN RELATION TO

USE OF PROCEEDS DISCLOSED IN THE ANNUAL REPORT

Reference is made to the annual report of King's Flair International (Holdings) Limited (the "Company", together with its subsidiaries, the "Group") for the year ended 31 December 2019 (the "Annual Report"). Unless the context requires otherwise, capitalised terms used in this supplemental announcement shall have the meanings as they are used in the Annual Report.

The board of directors of the Company (the "Board") would like to provide additional information pursuant to paragraphs 11(8) and 11A of Appendix 16 to the Rules Governing the Listing of Securities (the "Listing Rules") on the Stock Exchange of Hong Kong Limited (the "Stock Exchange") in relation to the use of the net proceeds raised from the Share Offer as set out below.

BREAKDOWN AND PURPOSE OF USE

Set out below is a breakdown of the planned use and actual use of the proceeds up to 31 December 2019:

		Actual use of	Actual use of
	Planned use of	proceeds from	proceeds
	the listing	during the	Unused
Purpose of net proceeds as	proceeds as	date to	year ended	proceeds as at
disclosed in	31 December	31 December	31 December
disclosed in the Prospectus	the Prospectus	2018	2019	2019
	HK$ million	HK$ million	HK$ million	HK$ million
To broaden customer base, to expand
penetration in existing markets and
to penetrate into new markets	11.0	11.0	-	-

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					Actual use of	Actual use of
	Planned use of	proceeds from	proceeds
		the listing	during the	Unused
Purpose of net proceeds as		proceeds as		date to	year ended	proceeds as at
	disclosed in		31 December	31 December	31 December
disclosed in the Prospectus	the Prospectus	2018		2019	2019
		HK$ million		HK$ million	HK$ million	HK$ million
To enhance the Group's product
design, development and
engineering capabilities	48.4	45.4	3.0	-
To establish flagship stores, with
one flagship store in Shanghai
by end of 2015, and expand the
Group's retail sales networks and
e-commerce business in the PRC	33.0	17.0	9.0	7.0
To purchase and renovate office
premises	98.9		-	-	98.9
To enhance the Group's information
technology infrastructure	6.5	6.5	-	-
For working capital and general
corporate purposes	22.0	22.0	-	-
	219.8		101.9		12.0		105.9
REMAINING PROCEEDS

The Group has been gradually implementing its business strategy of expanding its retail sales networks and e-commence business in the PRC and the net proceeds of the Share Offer allocated for such purpose has been applied in line with such implementation. It is expected that the remaining HK$7 million of the proceeds allocated for this purpose will be fully utilized by the year ending 31 December 2020.

Since completion of the Share Offer in January 2015, the Company has been on the lookout for acquiring suitable premises for expansion of office space as described in the Prospectus. However, prices of office premises in Hong Kong has been in a continuous upward trend since then and prices for premises of suitable size and location on the market has exceeded the budget allocated for such purpose. The Group will continue identifying suitable premises for expansion with a view to implement the acquisition and utilise part or whole of the proceeds allocated for this purpose by the year ending 31 December 2021.

The information contained in this supplemental announcement does not affect other information contained in the Annual Report and save as disclosed above, all other information in the Annual Report remains unchanged.

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Save as disclosed above, there is no material delay or change in the use of proceeds from the Share Offer. Further announcement(s) will be made by the Company in relation to the use of the remaining proceeds as and when appropriate.

By order of the Board

King's Flair International (Holdings) Limited

Wong Siu Wah

Chairman and Executive Director

Hong Kong, 11 August 2020

As at the date of this announcement, the board of directors of the Company comprised two executive directors, namely, Mr. Wong Siu Wah (Chairman and Chief Executive Officer) and Ms. Wong Fook Chi; and three independent non-executive directors, namely, Dr. Lau Kin Tak, Mr. Anthony Graeme Michaels and Ms. Leung Wai Ling, Wylie.

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