Hua Han Health Industry : Announcements and Notices - Clarification Announcement

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CLARIFICATION ANNOUNCEMENT

This announcement is made by Hua Han Health Industry Holdings Limited (the

''Company'', together with its subsidiaries, the ''Group'') on a voluntary basis.

Reference is made to the announcement of the Company dated 17 August 2016 and a further allegation report (the ''Further Allegation Report'') issued by Emerson Analytics Co. Ltd. (''Emerson'') on 26 August 2016. The board (the ''Board'') of directors (each a ''Director'') of the Company does not have any background information as to the identity of this Emerson, nor any Director or senior management of the Group has been interviewed by any of Emerson's analysts before the issuance of the Further Allegation Report.

The Board vigorously denies the accusations against the Company in the Further Allegation Report, and considers the information contained in the Further Allegation Report to be incomplete, biasedly-selected and presented and materially misleading. As admitted by Emerson in the Further Allegation Report, Emerson are short sellers and the Report is a short-biased opinion, and they will make money if the price of the shares of the Company declines. As the author of the Further Allegation Report may be a short seller or may associate with short seller(s), who stands to gain from its and/or its associates' short position when the prices of the Company's shares and/or debt securities fall, the Board would like to emphasise that the shareholders and potential investors of the Company should exercise extreme caution in reading the Further Allegation Report, which are seriously misleading, groundless and full of hyperboles and logic flaws.

Further announcement will be made by the Company to clarify and address the allegations or comments concerning the Group raised in the Further Allegation Report in due course.

By Order of the Board of

Hua Han Health Industry Holdings Limited Zhang Peter Y.

Chairman

Hong Kong, 29 August 2016

As at the date of this announcement, the Board comprises Mr. Zhang Peter Y., Mr. Deng Jie, Mr. Zhou Chong Ke, Mr. Chen Lei and Mr. Luo Zhan Biao as executive Directors, Mr. Tarn Sien Hao as non-executive Director, and Professor Lin Shu Guang, Professor Zhou Xin and Mr. Tso Sze Wai as independent non-executive Directors.