Hua Han Health Industry : Announcements and Notices - Update Announcement on the Resumption Progress

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.

UPDATE ANNOUNCEMENT ON THE RESUMPTION PROGRESS

This announcement is made by Hua Han Health Industry Holdings Limited (the ''Company'', together with its subsidiaries, the ''Group'') pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to (1) the Resumption Conditions Announcement in relation to the conditions imposed by the Stock Exchange on the Company in respect of the resumption of trading in the shares of the Company on the Stock Exchange; (2) the announcements of the Company dated 7 February 2017 and 28 February 2017 in relation to the appointment of Grant Thornton as the independent third party investigator; (3) the announcement of the Company dated 7 June 2017 in relation to the engagement of ZHONGHUI as the auditors of the Company; (4) the announcements of the Company dated 19 July 2017, 24 August 2017, 26 September 2017, 26 October 2017 and 29 November 2017 in relation to the update on the resumption progress; and (5) the announcement of the Company dated 3 October 2017 in relation to the delay in the publication of the 2016/2017 Annual Results and despatch of the 2016/2017 Annual Report. Unless the context otherwise requires, the capitalised terms used in this announcement shall have the same meanings as those defined in the announcement of the Company dated 29 November 2017.

UPDATE ON WORK PROGRESS OF INDEPENDENT THIRD PARTY INVESTIGATOR

As disclosed in the Company's announcements dated 19 July 2017, 24 August 2017, 26 September 2017, 26 October 2017 and 29 November 2017, Grant Thornton is working on the Investigation. The detailed scope of the Investigation was set out in the announcement of the Company dated 28 February 2017.

Grant Thornton has been conducting interviews with the key customers and suppliers.

UPDATE ON AUDIT PROGRESS

As disclosed in the Company's announcement dated 7 June 2017, 19 July 2017, 26 September 2017, 26 October 2017 and 29 November 2017, ZHONGHUI, has commenced the audit work in May 2017 in respect of the 2015/2016 Annual Results.

ZHONGHUI has been conducting interviews with the Group's major customers, major suppliers, suppliers of property, plant and equipment, contractors, personnel of relevant tax authorities and personnel of major banks.

TIMELINE FOR COMPLETION OF INVESTIGATION AND PUBLICATION OF OUTSTANDING FINANCIAL RESULTS

The Company would like to announce that the process of providing all necessary documents and information to Grant Thornton and ZHONGHUI to perform and complete the Investigation and the audit procedures on the 2015/2016 Annual Results is still ongoing. Based on the current progress and the proposed interview schedule with various external parties, the expected time for completion of the Investigation is delayed to the 1st quarter of 2018, but the expected time for the publication of the Outstanding Financial Results remains unchanged.

The Company has been actively undertaking the necessary actions to fulfil each of the resumption conditions imposed by the Stock Exchange. The Company is working closely with Grant Thornton and ZHONGHUI to ensure that the progress of their work will adhere to the above timeline.

The Company will publish further announcement(s) to update the shareholders of the Company and the public as and when appropriate.

CONTINUED SUSPENSION OF TRADING

At the request of the Company, trading in the Company's shares (stock code: 00587) and debt securities (stock code: 05676) has been suspended on the Stock Exchange with effect from 9:00 a.m. on Tuesday, 27 September 2016 and will remain suspended until further notice.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board of

Hua Han Health Industry Holdings Limited

Zhang Peter Y.

Chairman

Hong Kong, 29 December 2017

As at the date of this announcement, the Board comprises Mr. Zhang Peter Y., Mr. Deng Jie, Mr. Zhou Chong Ke, Mr. Bian Shu Guang and Ms. Niu Yi as executive Directors, Mr. Tarn Sien Hao as non-executive Director, and Professor Lin Shu Guang, Professor Zhou Xin and Mr. Chan Chun Kit as independent non-executive Directors.