KA SHUI INT'L (00822) announced that the existing share option scheme was adopted by the company on May 19, 2017, with a validity period of ten years from the adoption date. Under the terms of the existing share option scheme, the company may terminate the existing scheme at any time through a resolution passed at a general meeting of shareholders. In such circumstances, no further share options shall be granted, but the provisions of the existing share option scheme shall remain in effect to enable any share options that have been granted or may be required to be exercised under the provisions of the existing scheme prior to termination to continue to be exercised. Share options granted under the existing scheme prior to termination shall remain valid and may be exercised in accordance with the rules of the existing share option scheme.

As of the date of this announcement, there are 36.96 million share options that have been granted under the existing share option scheme but remain unexercised. From the date of this announcement until the date of the special general meeting, the board of directors has no intention to grant any further share options under the existing share option scheme.

The company proposes to adopt a new share option scheme. The purpose of the new share option scheme is to provide eligible participants with opportunities to acquire ownership interests in the company and to encourage eligible participants to work towards enhancing the value of the company and its shares, thereby benefiting the company and shareholders as a whole, as well as to incentivize eligible participants to contribute to the success of the group's business.

In accordance with the latest provisions of Chapter 17 of the Listing Rules, the company proposes to adopt a new share award scheme, which will constitute a share scheme under which the company grants awards. The purpose of the new share award scheme is to provide eligible participants with opportunities to acquire ownership interests in the company and to encourage eligible participants to work towards enhancing the value of the company and its shares, thereby benefiting the company and shareholders as a whole, as well as to incentivize eligible participants to contribute to the success of the group's business.