K Wah International : INTERIM SCRIP DIVIDEND WITH A CASH OPTION FOR THE SIX MONTHS ENDED 30 JUNE 2016

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.

This announcement is for information only and does not constitute an offer or invitation to acquire, purchase or subscribe for any securities of K. Wah International Holdings Limited anywhere in the world and neither this announcement nor anything herein forms the basis for any contract or commitment whatsoever.

The Discounted Market Value of a New Share for the purpose of calculating the number of New Shares to be allotted to the Shareholders as the interim scrip dividend for the six months ended 30 June 2016 is HK$4.0679.

A circular ("Circular") was despatched to the shareholders ("Shareholders") of K. Wah International Holdings Limited ("Company") on 21 September 2016 describing the arrangements for payment of the Interim Dividend of HK$0.05 per ordinary share of HK$0.10 each of the Company ("Share"). Defined terms used in this announcement shall have the same meanings as ascribed in the Circular, unless the context otherwise requires.

The Company announces that for the purpose of calculating the number of New Shares to be allotted by way of scrip dividend for the six months ended 30 June 2016, the Discounted Market Value of a New Share is HK$4.0679.

As stated in the Circular, the Discounted Market Value of HK$4.0679 is calculated by the average of the closing prices of each Share on The Stock Exchange of Hong Kong Limited ("HK Stock Exchange") for the consecutive trading days from 22 September 2016 to 28 September 2016, both dates inclusive (which is HK$4.282), less five per cent discount, rounding down such figure to four decimal places.

Accordingly, under the scrip dividend arrangements, Shareholders will receive the following number of New Shares as scrip dividend on that part of their shareholdings in respect of which they have not made elections to receive the Interim Dividend in cash:

The New Shares to be issued pursuant to the scrip dividend arrangements will rank pari passu in all respects with the existing issued Shares, except for the Interim Dividend, and will rank in full for all future dividends and distributions which may be declared, made or paid.

No Shareholder will be entitled to be issued any fraction of a New Share under the scrip dividend arrangements and the number of New Shares to be issued to each Shareholder (other than those who elect to receive their full entitlement to the Interim Dividend in cash) shall be rounded down to the nearest whole number. Fractional entitlements to New Shares will be disregarded and the benefit thereof will accrue to the Company.

Shareholders resident outside Hong Kong are reminded to consult their bankers or other professional advisers as to whether any governmental or other consents are required or other formalities need to be observed to enable them to receive New Shares in satisfaction of the Interim Dividend.

It is expected that share certificates in respect of the New Shares to be allotted as scrip dividend and dividend warrants of HK$0.05 per Share will be posted to the Shareholders at their own risk on or before 18 October 2016.

The Shareholders who wish to receive all or part of their Interim Dividend in cash in lieu of New Shares are reminded to complete the Form of Election and lodge it with the Company's branch share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong not later than 4:30 p.m. on 6 October 2016. Dealings of the New Shares on the HK Stock Exchange are expected to commence on or about 19 October 2016. Conditional approval for the listing of, and permission to deal in, the New Shares has been obtained from the HK Stock Exchange, subject to fulfillment of all other conditions of the scrip dividend scheme.

By Order of the Board of

Hong Kong, 28 September 2016

As at the date of this announcement, the Executive Directors of the Company are Dr. Lui Che-woo (Chairman & Managing Director), Mr. Francis Lui Yiu Tung, Ms. Paddy Tang Lui Wai Yu and Mr. Alexander Lui Yiu Wah; the Non-executive Director is Dr. Moses Cheng Mo Chi; and the Independent Non-executive Directors are Dr. Robin Chan Yau Hing, Dr. William Yip Shue Lam, Mr. Au Man Chu and Mr. Wong Kwai Lam.

Website: www.kwih.com