King Flair International : Supplemental Announcement in relation to the Annual Report for the year ended 31 December 2016

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) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 FINANCIAL HIGHLIGHTS For the six months ended 30 June

2017 HK$'000 (Unaudited)	2016 HK$'000 (Unaudited)	Change
Revenue	614,763	601,343	2.2%
Gross profit	132,786	141,813	(6.4%)
Profit from operations	71,016	83,752	(15.2%)
Profit attributable to equity shareholders	55,928	70,392	(20.5%)
Basic and diluted earnings per share (HK cents)	8.0	10.1
Gross profit margin	21.6%	23.6%
Operating profit margin	11.6%	13.9%
Net profit margin	9.5%	11.7%

The board of directors resolved to declare an interim dividend of HK4.5 cents and a special dividend of HK1.5 cents per ordinary share of the Company.

INTERIM RESULTS

The board (the "Board") of directors (the "Directors") of King's Flair International (Holdings) Limited (the "Company") is pleased to announce the unaudited consolidated result of the Company and its subsidiaries (collectively refer to as the "Group") for the six months ended 30 June 2017 together with the comparative figures for the corresponding period in 2016 as follows:

Condensed consolidated statement of comprehensive income Six months ended 30 June

Notes	2017 HK$'000 (Unaudited)	2016 HK$'000 (Unaudited)
Revenue	5	614,763	601,343
Cost of sales	(481,977)	(459,530)
Gross profit	132,786	141,813
Other income and gain	6	2,912	2,253
Distribution expenses	(16,206)	(13,499)
Administrative expenses	(48,476)	(46,815)
Operating profit	71,016	83,752
Finance costs	8	(74)	(144)
Profit before income tax	7	70,942	83,608
Income tax expenses	9	(12,377)	(13,131)
Profit for the period	58,565	70,477
Other comprehensive income Items that may be reclassified subsequently

to profit or loss:

Change in fair value of available-for-sale

financial assets 8,919 (2,100)

Exchange difference arising on translation of

foreign operations	411	329
Other comprehensive income for the period	9,330	(1,771)
Total comprehensive income for the period	67,895	68,706

Six months ended 30 June 2017 2016

Notes HK$'000 HK$'000

(Unaudited) (Unaudited) Profit for the period attributable to:

Owners of the Company 55,928 70,392

Non-controlling interests 2,637 85

58,565 70,477 Total comprehensive income attributable to:

Owners of the Company 65,143 68,479

Non-controlling interests 2,752 227

67,895 68,706 Earnings per share: 10 HK cents HK cents

- Basic 8.0 10.1

- Diluted 8.0 10.1

Condensed consolidated statement of financial position	As at	As at
30 June	31 December
2017	2016
Notes	HK$'000	HK$'000
(Unaudited)	(Audited)
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment	41,199	43,616
Prepaid land lease payments	1,708	1,692
Other asset	172	172
Loan receivable	12	12,993	-
Derivative financial instrument	12	2,567	-
Interest in an associate	-	-
Intangible asset	7,209	9,613
Deferred tax assets	4	4
65,852	55,097
Current assets
Inventories	13	34,499	21,354
Trade receivables	14	150,024	216,662
Prepayments, deposits and other receivables	31,427	36,023
Available-for-sale financial assets	15	48,862	32,163
Financial asset at fair value through profit or loss	16	8,301	-
Amount due from an associate	421	351
Prepaid tax	192	4,693
Pledged bank deposits	21,969	29,720
Cash and bank balances	501,682	383,984
797,377	724,950
Current liabilities
Trade and bills payables	17	85,068	89,974
Deposits received, other payables and accruals	53,019	57,145
Bank overdraft	15,912	-
Dividend payable	11	42,000	-
Loans from non-controlling interests	13,676	13,388
Provision for tax	10,725	2,485
220,400	162,992
Net current assets	576,977	561,958
Total assets less current liabilities	642,829	617,055
Non-current liabilities Loans from non-controlling interests	11,213	10,938
Deferred tax liabilities	6,876	7,272
18,089	18,210
Net assets	624,740	598,845