OneAll International Limited to update shareholders on the previously announced upgrade and expansion of its manufacturing facilities in Guangdong, China, which will boost production capacity by 20%. OneAll confirms that the necessary planning, building approvals and permits have been secured from the relevant authorities, and the Company expects to sign the construction contract before the end of March. Construction is expected to be completed by the end of second quarter of 2018 with the production line fully operational late in third quarter 2018. The installation of an additional powder coating line will be part of plant upgrade, and expanding this operating capability is expected to largely resolve current bottle-neck of production output. There are two phases to the upgrade and expansion, the first being a plant upgrade and new equipment installations, and the second phase being the expansion of warehousing capacity and the installation of a new permanent commercial showroom and office facilities. As flagged in the November 2017 announcement relating to the first phase plant upgrade and expansion, by increasing production capacity OneAll expects to generate approximately $17 million in additional revenue over four years and achieve a +22% internal rate of return from a stage investment of $3 million. The payback period is four years. OneAll looks forward to reporting on the upgrade and expansion progress. The Company stresses that there will be no adverse impact on manufacturing, supply and delivery operations during the works.

With the scaling up manufacturing, warehousing and logistics functions in China, and with permanent and larger sales and marketing functions now firmly established in Europe through recent acquisitions, co-founder Roger Cao has taken the decision to step down from executive duties. He will assume the role of Non-Executive Director and continue to provide advice and strategic input at Board level. Co-founder Mr. Douts Li will assume the role of Managing Director and now sole Chief Executive Officer. Douts is driving all plant upgrade and warehousing expansion activities in China and the Company's believes that the executive resources need to focus on the successful delivery of the outcomes in order to underpin future production growth. Douts and Roger continue to work constructively at Board level, as they have done for the past 17 years.