Quali Smart : PROPOSED INCREASE IN AUTHORISED SHARE CAPITAL

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QUALI-SMART HOLDINGS LIMITED

滉達富控股有限公司 *

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1348) PROPOSED INCREASE IN AUTHORISED SHARE CAPITAL

The board of directors (the "Board") of Quali-Smart Holdings Limited (the "Company") would like to proposed an increase in the authorised share capital of the Company at the next annual general meeting of the Company to be held in August 2017.

As of the date of this announcement, the Company had an authorised share capital of US$50,000 divided into 2,000,000,000 ordinary shares of US$0.000025 each (the "Shares"), of which 1,474,232,000 Shares were in issue. In addition, the Company had outstanding convertible notes which are convertible into 282,051,281 Shares and outstanding Share Options carrying rights to subscribe for an aggregate of 151,191,600 Shares as at the date of this announcement. Therefore, a total of 1,907,474,881 Shares in the authorised share capital have already been utilised, representing 95.4% of the authorised share capital of the Company as at the date of this announcement.

In order to accommodate for any future grant of options, the future growth and expansion of the Group and to provide for the Company with more flexibility to raise funds by allotting and issuing Shares in the future as and when necessary, the Board of the Company proposes to increase the authorised share capital of the Company to US$75,000 divided into 3,000,000,000 Shares by creating an additional 1,000,000,000 Shares, which shall rank pari passu with each other and with the existing Shares in all respect upon issue. The increase in the authorised share capital of the Company is conditional upon the passing of an ordinary resolution at the annual general meeting of the Company expected to be convened in August 2017.

A circular containing, among other things, details of the increase in the authorised share capital of the Company and the notice convening the annual general meeting of the Company will be dispatched to the shareholders of the Company as soon as practicable.

By order of the Board

Quali-Smart Holdings Limited

Lau Ho Ming, Peter

Executive Chairman

Hong Kong, 28 June 2017

As at the date of this announcement, the Board comprises Mr. Lau Ho Ming, Peter (Executive Chairman), Mr. Poon Pak Ki, Eric, Mr. Ng Kam Seng and Mr. Chu Raymond as executive Directors; Ms. Li Man Yee, Stella as a non-executive Director; and Mr. Leung Po Wing, Bowen Joseph GBS, JP, Mr. Chan Siu Wing, Raymond and Mr. Wong Wah On, Edward as independent non-executive Directors.