Major and Connected Transaction Completion of the Disposal of Equity Interest in Mg Technology

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.

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(Incorporated in the Cayman Islands with limited liability)

References are made to (1) the announcement of Ka Shui International Holdings Limited (the "Company") dated 24 October 2016; and (2) the circular of the Company dated 22 November 2016 (the "Circular"), both in relation to the disposal of the entire equity interest of MG Technology (Shenzhen) Company Limited* by Ka Shui (Holdings) Company Limited. Unless otherwise specified, capitalised terms used in this announcement shall have the same meanings as defined in the Circular.

The Board is pleased to announce that all the conditions precedent under the Equity Transfer Agreement have been fulfilled. The Completion took place on 12 July 2017 in accordance with the terms and conditions of the Equity Transfer Agreement. Upon Completion, MG Technology has ceased to be a subsidiary of the Company and the financial results of MG Technology will no longer be consolidated into the consolidated financial statements of the Group.

By Order of the Board

Executive Director

Hong Kong, 12 July 2017

* For identification purposes only

As at the date of this announcement, the Board comprises three executive directors, namely Mr. Lee Yuen Fat, Mr. Wong Wing Chuen and Dr. Wong Cheong Yiu, and four independent non- executive directors, namely Mr. Sun Kai Lit Cliff BBS, JP, Ir Dr. Lo Wai Kwok SBS, MH, JP, Mr. Andrew Look and Mr. Kong Kai Chuen, Frankie.