Hua Han Health Industry : UPDATE ON WINDING-UP PROCEEDINGS AND PRC BANKRUPTCY RE-ORGANISATION OF PRC ENTITIES

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Hua Han Health Industry Holdings Limited

華瀚健康產業控股有限公司

(Provisional Liquidators Appointed)

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 587)

UPDATE ON WINDING-UP PROCEEDINGS AND PRC BANKRUPTCY RE- ORGANISATION OF PRC ENTITIES

This announcement is made by Hua Han Health Industry Holdings Limited ("Company"), together with its subsidiaries ("Group") pursuant to Rule 13.09 and Rule 13.24A 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 the announcement of the Company dated 22 June 2020 in relation to, inter alia, the Regulating Order Application to the HK Court made by the Provisional Liquidators on 9 March 2020 pursuant to Sections 227A and 227B of the CWUMPO. 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 22 June 2020.

WINDING-UP PROCEEDINGS

On 30 June 2020, the Hearing in respect of the Regulating Order Application was heard before the HK Court for 3 hours. Notice of the hearing was sent to all known creditors and shareholders of the Company. At the hearing, certain shareholders of the Company were appeared by their solicitor and counsel and they opposed the Regulating Order Application.

On 4 August 2020, the HK Court has granted, inter alia, the following orders sought by the Provisional Liquidators:

1. the winding-up of the Company be regulated specially by the HK Court under Section 227A of the CWUMPO;
2. the summoning of the first meetings of the creditors and contributories of the Company as required under Sections 194 and 206 of the CWUMPO for the purpose of considering the appointment of a liquidator and a committee of inspection be dispensed with;
3. the Provisional Liquidators be appointed as the Joint and Several Liquidators of the Company ("Liquidators"); and

4. a committee of inspection of the Company be constituted.

Further announcements in respect of the winding-up of the Company will be made as and when appropriate.

PRC BANKRUPTCY REORGANISATION - LIUPANSHUI CITY LIANG DOU PEOPLE'S HOSPITAL COMPANY LIMITED

Liupanshui City Liang Dou People's Hospital Company Limited 六盤水市涼都人民醫院有 限公司 ("Liupanshui Liang Dou Hospital Company") is a company incorporated in the Peoples' Republic of China ("PRC"). The Company indirectly holds 68% in the share capital of Liupanshui Liang Dou Hospital Company.

On 25 December 2019, an application was made by Bank of Guizhou Co Ltd, Liupanshui Branch 贵州银行股份有限公司六盘水分行 ("Bank of Guizhou") for the bankruptcy re- organisation of Liupanshui Liang Dou Hospital Company on the basis of the outstanding debt of approximately RMB367 million. On 19 March 2020, the Guizhou Liupanshui Intermediate People's Court 贵州省六盘水市中级人民法院 ("Liupanshui Intermediate Court") made orders that Liupanshui Liang Dou Hospital Company be placed into bankruptcy re-organisation ("Liupanshui Bankruptcy Re-organisation") and Chongqing Haichuan Assets Qingsuan Service Limited, Anshun Branch 重慶海川資產清算服務有限公司安順分公司 be appointed bankruptcy administrator ("Bankruptcy Administrator").

On 24 April 2020, an application was made by the Bankruptcy Administrator seeking to include Liupanshui City Liang Dou People's Hospital 六盤水市涼都人民醫院 (a hospital being constructed by Liupanshui Liang Dou Hospital Company, "Liupanshui Liang Dou Hospital") in the Liupanshui Bankruptcy Re-organisation on the basis that Liupanshui Liang Dou Hospital Company and Liupanshui Liang Dou Hospital shared substantial similarities in their financial and operational affairs, staff and business address. On 30 April 2020, the Liupanshui Intermediate Court made an order that Liupanshui Liang Dou Hospital be included in the Liupanshui Bankruptcy Re-organisation.

Further announcements in respect of the Liupanshui Bankruptcy Re-organisation will be made as and when appropriate.

CONTINUED SUSPENSION OF TRADING

Trading in the shares of the Company has been suspended since 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.

For and on behalf of

Hua Han Health Industry Holdings Limited

(In Compulsory Liquidation)

Chan Ho Yin Michael

and

Chi Lai Man Jocelyn

Joint and Several Liquidators

Hong Kong, 13 August 2020