Hosa International : Announcements and Notices - Voluntary Announcement

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.

HOSA INTERNATIONAL LIMITED खӍ਷ყϞࠢʮ̡

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 02200)

VOLUNTARY ANNOUNCEMENT

This is a voluntary announcement made by Hosa International Limited (the "Company", together with its subsidiaries, the "Group") to provide the shareholders of the Company (the "Shareholders") and potential investors with information on certain matters concerning the business operations of the Group.

NORMAL BUSINESS OPERATION

The board (the "Board") of directors (the "Directors") of the Company wishes to inform its Shareholders and potential investors that the Group is operating normally, with healthy liquidity ratios, in net cash position, and there are no unusual circumstances concerning or adversely affecting the Group's business to which the Board wishes to draw the Shareholders' and potential investors' attention.

SUPPORT FROM LOCAL GOVERNMENT IN JINJIANG

While there are no unusual circumstances concerning or adversely affecting the Group's business, as a contingency plan in response to the recent share price fluctuations, the Group has communicated with the local government in the Jinjiang, Fujian province, the People's Republic of China, who has indicated to the Group that it is minded to provide the necessary assistance to the Group if and when needed.

NOT BEING A SUBJECT OF ALLEGATION IN A MARKET REPORT

The Company is aware of a certain market report published recently (the "Report") that questioned the financial integrity of Fujian based sportswear companies. The Directors confirm that the Company is not among the companies alleged by the Report as having suspected problem with financial integrity.

POTENTIAL STRATEGIC COOPERATION WITH AND SUBSCRIPTION OF SHARES BY TWO STATE-OWNED ENTERPRISES

The Group is having active negotiation with two state-owned enterprises on potential strategic cooperation and subscription of the shares of the Company. The Company will publish further announcement(s) to update the Shareholders and potential investors of any major development in this regard.

By order of the Board Hosa International Limited

Shi Hongliu Chairman

Hong Kong, 11 July 2018

As at the date of this announcement, the executive directors are Mr. Shi Hongliu, Mr. Shi Hongyan, Mr. Shi Zhixiong and Mr. Lui Wai Ming, and the independent non-executive directors are Mr. Yau Chi Ming, Mr. Yao Ge and Mr. He Wenyi.