Led International Holdings Regulatory News (LED)

8 February 2016

LED International Holdings Limited

("LED" or the "Company")

Corporate Update

The board of directors of LED (the "Board") today provide the following update for the Company's shareholders (the "Shareholders").

Cessation of the conditional agreement with the shareholders of Shenzhen Ruihetai Industry Co. Limited ("RHT")

On 31 March 2015 the Company announced that it had decided to form a new joint venture with the shareholders of RHT. The Company now announces that it has ceased negotiations aimed at establishing the said joint venture for a new distribution business. Upon further discussions with the Company's People's Republic of China ("PRC") lawyers and the shareholders of RHT, it was concluded that the proposed joint venture did not achieve the original goals of the parties. The Company has sent a termination notice to the shareholders of RHT in respect of all agreements executed as part of LED's negotiations.

Annual report and accounts

Further to the Company's announcement of 22 December 2015, the Company announces that it is seeking to publish its audited report and accounts for the year ended 30 June 2015 during the second quarter of 2016. The delay is primarily due to the fact that the first quarter is a peak season for audit firms in Hong Kong.

The Company's independent auditor issued a series of disclaimers of opinion on the consolidated financial statements for the year ended 30 June 2014. Where possible, the Board will work with its independent auditor to seek to resolve and thereby remove certain of these disclaimers of opinion from the Company's consolidated financial statements for the year ended 30 June 2015.

The Company's ordinary shares (the "Shares") were suspended from trading on AIM on 22 December 2015, pursuant to AIM Rule 19. The suspension will remain in place until, inter alia, the Company's audited report and accounts for the year ended 30 June 2015 have been published and posted to Shareholders.

PRC economic outlook and current trading and prospects

Trading conditions within LED's markets in the PRC remain challenging.

LED has experienced difficulties and delays in collecting receivables from certain of its customers. The Company is in dialogue with these customers and hopes that LED's receivables position can be improved during 2016. However, as a result of the above, the Company's working capital position is constrained.

Given the uncertainty regarding the energy management and equipment leasing markets in the PRC, the issues with the collection of receivables and the general trading outlook of certain areas of LED's business, the Board continues to examine opportunities for the development of its business. This could potentially involve acquisitions, joint-ventures or other new business opportunities.

Given the constraints of the Company's working capital position, it is likely that LED will also seek to raise finance in the short to medium-term future, which could be via a new issue of equity and/or debt, and/or via the restructuring of the Company's existing debt facilities.

Update on Shenzhen Lamp Energy Management Investment Company Limited

On 25 March 2013 LED announced the acquisition of Shenzhen Lamp Energy Management Investment Company Limited (subsequently renamed to Shenzhen Green Pearl Energy Management Services Company Limited ("GPEMCO")). This acquisition was structured as a direct acquisition of GPEMCO's immediate parent company, Shenzhen Green Pearl Energy Management Technology Development Company Limited ("Shenzhen GP Energy"), by the Company's 60% subsidiary, Green Pearl Energy Conservation Holdings Limited ("GP Energy Holdings") (the "Acquisition").

The Acquisition has been restructured in such a way such that GP Energy Holdings had set up Carten International Limited, a wholly owned subsidiary in Hong Kong, as an investment company to acquire Shenzhen GP Energy, which will subsequently be restructured and transformed from a domestic PRC company to a Wholly Foreign Owned Enterprise ("WFOE") under the laws of the PRC.

GP Energy Holdings signed the relevant acquisition agreement with Mr. So Hing Chung (the "Acquisition Agreement") on 21 March 2013. One of the terms of the Acquisition Agreement is that the business and assets, including patents and intellectual property rights, inventories and energy management contracts of Strongbase New Opto-Electronics Technology Company Limited (a former subsidiary of the Company, the disposal of which was announced on 25 March 2013) (together the "Assets") be transferred to GPEMCO.

As at the date of this announcement, the Acquisition has yet to be fully completed as the Company is in the process of obtaining consent from the PRC government for the transformation of Shenzhen GP Energy into a WFOE. Despite the delay, the Company retains control over and safeguards the Assets by exercising management control over GPEMCO.

The Board expects that the Acquisition and the related transactions will be completed in the middle of 2016.

Further announcements will be made in due course.

**Ends**

For further information:

Notes to Editors:

LED International Holdings Limited and its subsidiaries specialize in the provision of EMC contracts under which the group (the "Group") installs energy saving products in its customers' premises, including lighting and reactance filtering equipment supplied by the Group, and the subsequent savings made by the customers in their electricity charges are then shared between the Group and the customers thereby enabling the Group to generate recurring revenue rather than one-off sales revenue. Historically, the Group's business has been the development, manufacture and sale of low-powered light-emitting diode ("LED") display screens and modules.

Under EMC contracts, the Group provides energy efficiency solutions, including LED lighting, reactance filtering energy saving and other energy efficiency solutions. Specifically, the Group overhauls its customers' existing lighting and power consumption systems (which are based on traditional lighting technology and power generation equipment) with proprietary LED lighting products, reactance filtering equipment and other solutions provided by the Group. These energy efficiency products are installed in customers' premises. The Group bears all the upfront costs associated with the supply and installation of the energy efficiency solutions and these costs are then recouped by sharing in the monthly energy savings generated by the customers' use of the energy efficiency solutions over the period of the contracts. The Group receives revenue from customers on several different payment terms including on a pre-payment, monthly or quarterly basis.

For more information, please visit: http://www.led-intl.com