On January 13, 2014, Hanfeng Evergreen Inc. announced that the board of directors of the Corporation has adopted a shareholder rights plan and an advance notice by-law, each effective January 10, 2014. In addition, the Company announced that in light of Xinduo Yu's share ownership and previously announced intention to nominate a new slate of independent directors, the fundamental objective of the rights plan and the advance notice by-law is to ensure, to the extent possible, that all shareholders of the Corporation are treated equally and fairly in connection with any initiative to acquire control of the Corporation whether by way of a dissident proxy solicitation, take-over bid, or otherwise.