Hua Han Health Industry : 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, makes no representation as to its accuracy or completeness and expressly disclaims 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 Rules Governing the Listing of Securities (the ''Listing Rules'') on The Stock Exchange of Hong Kong Limited (the ''Stock Exchange''), 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 12 December 2016 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 (the ''Resumption Conditions Announcement''), 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 and the announcement of the Company dated 7 June 2017 in relation to the engagement of ZHONGHUI ANDA CPA Limited (''ZHONGHUI'') as the auditors of the Company and the update announcement of the Company dated 19 July 2017. Unless the context otherwise requires, the capitalized terms used in this announcement shall have the same meanings as those defined in the announcement of the Company dated 19 July 2017.

UPDATE ON WORK PROGRESS OF INDEPENDENT THIRD PARTY INVESTIGATOR

As disclosed in the Company's announcements dated 19 July 2017, Grant Thornton is working on the investigation to cover the allegations set out in the negative reports from Emerson Analytics Co., Ltd. dated 10 August 2016, 26 August 2016 and 7 September 2016, and the issues and matters referred to in the Letters (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 arranging interviews with the key customers, suppliers and respective tax authorities in August 2017. Such interviews will be conducted in the coming months.

UPDATE ON AUDIT PROGRESS

As disclosed in the Company's announcement dated 7 June 2017 and 19 July 2017, the Company's auditors, ZHONGHUI, has commenced the audit work in May 2017 in respect of the Company's consolidated financial statements for the year ended 30 June 2016 (the ''2015/2016 Annual Results'').

ZHONGHUI has been arranging 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 in August 2017. Such interviews will be conducted in the coming months.

UPDATE ON TIMELINE FOR PUBLICATION OF FINANCIAL RESULTS

The Company would like to announce that 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, there is no change on the expected time for completion of the Investigation and the publication of 2015/2016 Annual Results.

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

CONTINUAL 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, 24 August 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.