Quali Smart : PROFIT WARNING

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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) PROFIT WARNING

This announcement is made by Quali-Smart Holdings Limited (the ''Company'' together with its subsidiaries, the ''Group'') pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong). .

The board of directors (the "Board") of the Company would like to inform the Shareholders and the potential investors of the Company that based on the information currently available to the Board, the Group is expected to record an increase in the consolidated net loss for the Group of more than 20% for the year ended 31 March 2017 as compared with the last financial year. Such increase in consolidated net loss is mainly attributable to

1. the impairment loss in relation to the intangible assets of the information technology division of the Group for the year ended 31 March 2017, which is offset by a substantial decrease in the impairment loss on goodwill during the year under review when compared with the last financial year; and

2. an increase in consolidated administrative expenses of the Group arising from (a) an increase in the equity settled share-based payment expenses, particularly related to a new tranche of share options granted towards the end of the last financial year; (b) an increase in salary and rental expenses of the financial services division of the Group, which is partially offset by an increase in the consolidated gross profit of the Group mainly contributed by the financial services division of the Group during the year under review when compared with the last financial year.

The Directors would like to emphasize that the impairment loss on intangible assets and equity settled share-based payment expenses are non-cash items which will have no impact on the Group's daily operations and cashflows.

The information contained in this profit warning announcement is based on the preliminary assessment by the Board on the latest information currently available to it and is not based on any figures or information which have been confirmed or audited by the Company's auditors. The audited consolidated final results of the Group may be subject to further adjustments following further review by the Board, discussions with the auditor and valuer of the Company

* For identification purposes only - 1 -

and completion of the required auditing procedures. Details of the final audited annual results of the Group for the year under review are expected to be published on or before 30 June 2017 in compliance with the requirements of the Listing Rules.

Shareholders and potential investors are advised to exercise caution in dealing in the shares in the Company.

By order of the Board

Quali-Smart Holdings Limited

LAU Ho Ming, Peter

Executive Chairman

Hong Kong, 8 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; Madam. Li Man Yee, Stella as 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.

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