Hua Han Health Industry : Announcements and Notices - Update on Trading Suspension, Other Litigation Matters and Resignation of Non-executive Director

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UPDATE ON TRADING SUSPENSION, OTHER LITIGATION

MATTERS AND RESIGNATION OF NON-EXECUTIVE DIRECTOR

SCOPE OF AUTHORISATION OF RESUMPTION COMMITTEE

References are made to

1. the announcement of Hua Han Health Industry Holdings Limited (the ''Company'') dated 12 December 2016 in relation to the conditions (the ''Resumption Conditions'') as specified by the Stock Exchange for the resumption of trading in the shares of the Company (the ''Resumption'') on the Stock Exchange of Hong Kong Limited (the
   ''Stock Exchange'');
2. the announcement of the Company dated 21 November 2018 in relation to the direction issued by the Securities and Futures Commission (the ''SFC'') under section 8(1) of the Securities and Futures (Stock Market Listing) Rules (Chapter 571V of the Laws of Hong Kong) to suspend trading in the Company's shares (the ''Rule 8(1) Suspension''); and
3. the announcement of the Company dated 11 June 2019, in relation to, among other matters, the establishment of the resumption committee of the Company (the
   ''Resumption Committee'').

The board (the ''Board'') of directors (the ''Directors'', and each a ''Director'') of the Company announces that it has further approved the authorisation for the Resumption Committee, to handling all matters (the ''Resumption Matters'') in relation to achieving the Resumption, including but not limited to:

1. to liaise and communicate with the Stock Exchange, the SFC and other regulatory authorities in relation to the Resumption Conditions, the Rule 8(1) Suspension and any other enquires or comments raised by the Stock Exchange, the SFC and other regulatory authorities, and to sign and submit on behalf of the Company any relevant documents to the Stock Exchange, the SFC and other regulatory authorities;

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1. to handle, in its sole discretion, litigations and legal proceedings which the Company, together with its subsidiaries, (the ''Group'') was involved in after the Suspension Date (as defined below) (the ''Litigation Matters'');
2. to determine the engagement and appointment of legal advisers, financial advisers and internal control advisers and independent third party investigators in respect of the Resumption Matters and the Litigation Matters;
3. to discuss, negotiate and determine with third parties in relation to the restructuring of the Group for the sole purpose of achieving the Resumption; and
4. to publish any announcement and circular in relation to the Resumption Matters and the Litigation Matters.

WINDING UP PROCEEDINGS

The Board announces that the Company received a petition issued on 11 April 2019 (the ''Petition'') and amended on 20 May 2019 (the ''Amended Petition'') from Cypress House Capital Limited (the ''Petitioner'') in the matter of the Companies (Winding Up and Miscellaneous Provision) Ordinance (Chapter 32 Hong Kong Laws) filed in the High Court of The Hong Kong Special Administrative Region (the ''High Court'') under Companies Winding-up Proceedings No. 110 of 2019 (the ''Winding-up Proceedings''). The Petition was filed against the Company for failure to settle a sum of HK$2,030,996, being the alleged outstanding amount owed by the Company to the Petitioner.

Bull's-Eye Limited, the largest shareholder of the Company interested in approximately 29.77% of the entire issued share capital of the Company, reached a settlement with the Petitioner, and they filed consent summons on 27 May 2019 seeking, among others, the dismissal of the Amended Petition.

RESIGNATION OF NON-EXECUTIVE DIRECTOR

The Board also announces that Mr. Tarn Sien Hao (''Mr. Tarn'') has tendered a resignation letter dated 22 April 2019 to resign as a non-executive Director (''Mr. Tarn's Resignation'') in view of the Winding-up Proceedings. The Board has approved Mr. Tarn's Resignation with effect from 19 June 2019.

Mr. Tarn has not raised any disagreement with the Board or other matters in respect of his resignation that need to be brought to the attention of the shareholders of the Company.

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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 (the ''Suspension Date'') 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.

For and on behalf of the Board

Hua Han Health Industry Holdings Limited

Choong Khuat Leok

Chairman of Resumption Committee

Hong Kong, 27 June 2019

As at the date of this announcement, the Board comprises Mr. Zhang Peter Y., Mr. Deng Jie, Mr. Bian Shu Guang and Ms. Niu Yi as executive Directors, and Professor Lin Shu Guang, Professor Zhou Xin and Mr. Choong Khuat Leok as independent non-executive Directors.

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