Kingbo Strike : PLACING OF NEW SHARES UNDER GENERAL MANDATE

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This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities of the Company.

KINGBO STRIKE LIMITED

工蓋有限公司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1421) PLACING OF NEW SHARES UNDER GENERAL MANDATE Placing Agent PLACING OF NEW SHARES UNDER GENERAL MANDATE

On 20 June 2017 (after trading hours of the Stock Exchange), the Company entered into the Placing Agreement with the Placing Agent, pursuant to which the Placing Agent has conditionally agreed, as agent of the Company, to procure on a best effort basis, not less than six Placees, who and whose ultimate beneficial owners shall be Independent Third Parties to subscribe for up to 152,000,000 Placing Shares at the Placing Price of HK$0.266 per Placing Share.

Assuming that there will be no change in the issued share capital of the Company between the date of this announcement and the completion of the Placing, the maximum of 152,000,000 Placing Shares represent (i) approximately 18.18% of the existing issued share capital of the Company as at the date of this announcement; and (ii) approximately 15.38% of the issued share capital of the Company as enlarged by the allotment and issue of all the Placing Shares.

The Placing Price of HK$0.266 per Placing Share represents: (i) a discount of approximately 8.28% to the closing price of HK$0.29 per Share as quoted on the Stock Exchange on 20 June 2017, being the date of the Placing Agreement; and (ii) a discount of approximately 9.83% to the average closing price of HK$0.295 per Share as quoted on the Stock Exchange for the last five consecutive trading days immediately prior to the date of the Placing Agreement.

* For identification purposes only

The Placing Shares will be allotted and issued pursuant to the General Mandate and is not subject to further Shareholders' approval. An application will be made by the Company to the Listing Committee of the Stock Exchange for the listing of, and permission to deal in, the Placing Shares.

Assuming all the Placing Shares are fully placed, the gross proceeds from the Placing will be HK$40,432,000. The net proceeds, after deduction of all relevant expenses (including but not limited to placing commission, legal expenses and disbursements) incidental to the Placing of approximately HK$750,000, are estimated to be approximately HK$39,682,000. The Company intends to apply the net proceeds from the Placing (i) as to HK$20,000,000 to finance the acquisition of the Properties; and (ii) as to approximately HK$19,682,000 as general working capital of the Group.

Shareholders and potential investors of the Company should note that completion of the Placing is subject to the fulfilment of the condition set out in the Placing Agreement. The Placing may or may not proceed. Shareholders and potential investors of the Company are therefore urged to exercise caution when dealing in the Shares and other securities of the Company. PLACING OF NEW SHARES UNDER GENERAL MANDATE

On 20 June 2017 (after trading hours of the Stock Exchange), the Company entered into the Placing Agreement with the Placing Agent, pursuant to which the Placing Agent has conditionally agreed, as agent of the Company, to procure on a best effort basis, not less than six Placees, who and whose ultimate beneficial owners shall be Independent Third Parties to subscribe for up to 152,000,000 Placing Shares at the Placing Price of HK$0.266 per Placing Share. Details of the Placing Agreement are set out below:

The Placing Agreement Date: 20 June 2017 Parties: (i) the Company (as issuer); and

(ii) Pinestone Securities Limited (as placing agent).

To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, the Placing Agent and its ultimate beneficial owner(s) are Independent Third Parties

Pursuant to the terms of the Placing Agreement, the Placing Agent will receive a placing commission of 1.5% of the amount which is equal to the Placing Price multiplied by the number of Placing Shares actually placed by the Placing Agent. The placing commission in respect of the Placing was negotiated on arm's length basis between the Company and the Placing Agent.

The Directors consider that the placing commission in respect of the Placing was determined with reference to the prevailing market rates and is fair and reasonable.

Placees

The Placing Shares will be placed to not less than six Placees, who shall be professional, institutional or other investors, and who and whose ultimate beneficial owners are Independent Third Parties. Upon completion of the Placing, it is expected that none of the Placees will become a substantial Shareholder. If any of the Placees will become a substantial Shareholder after completion of the Placing, further announcement will be made by the Company.

Placing Shares

Assuming that there will be no change in the issued share capital of the Company between the date of this announcement and the completion of the Placing, the maximum of 152,000,000 Placing Shares represent (i) approximately 18.18% of the existing issued share capital of the Company as at the date of this announcement; and (ii) approximately 15.38% of the issued share capital of the Company as enlarged by the allotment and issue of all the Placing Shares.

The aggregate nominal value of the maximum of 152,000,000 Placing Shares is HK$1,520,000.

Ranking of the Placing Shares

The Placing Shares, when allotted and issued, will rank pari passu in all respects among themselves and with the Shares in issue on the date of allotment and issue of the Placing Shares.

Placing Price

The Placing Price of HK$0.266 per Placing Share represents: (i) a discount of approximately 8.28% to the closing price of HK$0.29 per Share as quoted on the Stock Exchange on 20 June 2017, being the date of the Placing Agreement; and (ii) a discount of approximately 9.83% to the average closing price of HK$0.295 per Share as quoted on the Stock Exchange for the last five consecutive trading days immediately prior to the date of the Placing Agreement.

The Placing Price was arrived at after arm's length negotiations between the Company and the Placing Agent with reference to the prevailing market prices and the recent trading performance of the Shares. The Directors consider that the Placing Price and the terms of the Placing Agreement are fair and reasonable and are in the interests of the Company and the Shareholders as a whole.

Condition of the Placing

The Placing is conditional upon the Listing Committee of the Stock Exchange granting the approval for the listing of, and the permission to deal in, the Placing Shares.

In the event that the above condition is not fulfilled on or before 11 July 2017 (or such later date as may be agreed between the parties to the Placing Agreement in writing), all rights, obligations and liabilities of the parties to the Placing Agreement shall cease and terminate and neither of the parties thereto shall have any claim against the other save for any antecedent breach under the Placing Agreement prior to such termination.

Completion of the Placing

Completion of the Placing shall take place on a date falling within three Business Days after the day on which the condition set out in the Placing Agreement has been fulfilled (or such later date as may be agreed between the parties to the Placing Agreement).

Application for listing

An application will be made by the Company to the Listing Committee of the Stock Exchange for the listing of, and permission to deal in, the Placing Shares.

General Mandate to issue the Placing Shares

The Placing Shares will be allotted and issued pursuant to the General Mandate. The maximum number of Shares that can be issued under the General Mandate is 152,000,000 Shares. As at the date of this announcement, no Shares have been allotted and issued under the General Mandate. The General Mandate is sufficient for the allotment and issue of all the Placing Shares. As such, the issue of the Placing Shares is not subject to further Shareholders' approval. The General Mandate will be fully utilised upon the allotment and issue of all the Placing Shares.

Termination

The Placing Agent may terminate the Placing Agreement without any liability to the Company save for antecedent breach under the Placing Agreement prior to such termination, by notice in writing given to the Company at any time prior to 8:00 a.m. on the date of completion of the Placing upon the occurrence of the following events which, in the reasonable opinion of the Placing Agent, has or may have an adverse effect on the business or financial conditions or prospects of the Group taken as a whole or the success of the Placing or the full placement of all of the Placing Shares or otherwise make it inappropriate, inadvisable or inexpedient to proceed with the Placing on the terms and in the manner contemplated in the Placing Agreement if there develops, occurs or comes into force:

1. any event, development or change (whether or not local, national or international or forming part of a series of events, developments or changes occurring or continuing before, on and/or after the date of the Placing Agreement) and including an event or change in relation to or a development of an existing state of affairs of a political, military, industrial, financial, economic, fiscal, regulatory or other nature, resulting in a change in, or which may result in a change in, political, economic, fiscal, financial, regulatory or stock market conditions; or

2. the imposition of any moratorium, suspension or restriction on trading in the securities generally on the Stock Exchange occurring due to exceptional financial circumstances or otherwise; or

3. any change in conditions of local, national or international securities markets occurs; or