Cosmo Lady China : Supplemental Announcement - Renewal of Continuing Connected Transactions - Framework Purchase Agreement with Shantou Maosheng and Framework Purchase Agreement with Shantou Shengqiang

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.

都市麗 人（中 國）控股有限公司

(Incorporated in the Cayman Islands with limited liability)

Reference is made to the announcement of Cosmo Lady (China) Holdings Company Limited (the "Company") dated 27 June 2017 (the "Announcement"). Unless otherwise stated, terms used in this announcement have the same meanings as defined in the Announcement.

The Company would like to provide additional information to its Shareholders and potential investors in relation to the continuing connected transactions contemplated under the New Framework Purchase Agreements.

The Company believes that the following OEM supply selection procedures, which are the same as in previous years, can ensure that the purchase prices, for the purchases under the New Framework Purchase Agreements, shall not be higher than the prices at which the Company purchases similar products from independent third party OEM suppliers.

When the Company selects OEM suppliers, the research and development department will require at least two to three different OEM suppliers, including independent third-party OEM suppliers, to provide the Company with quotations. The research and development department will then compare the quotations and evaluate each OEM supplier based on a range of factors, including overall track record, expertise, product quality and quality control effectiveness, historical relationship with us, price, reliability, financial condition,

reputation, experience, ability to meet our delivery timeline and production capacity. The Company also conducts regular evaluation of our existing OEM suppliers to identify and remove unqualified ones. Please refer to the Company's prospectus dated 16 June 2014 for more details on OEM suppliers selection which remain unchanged.

By order of the Board

Chairman

Hong Kong, 5 July 2017

As at the date of this announcement, the executive directors of the Company are Mr. ZHENG Yaonan, Mr. ZHANG Shengfeng, Mr. LIN Zonghong, Mr. CHENG Zuming and Ms. WU Xiaoli; the non-executive director of the Company is Mr. WEN Baoma; and the independent non-executive directors of the Company are Mr. YAU Chi Ming, Dr. DAI Yiyi and Mr. CHEN Zhigang.