Reference is made to the previous announcements released on 18 December 2013, 9 May 2014, 6 May 2015, and 14 May 2015 respectively, the Board of Directors of China Ouhua wishes to provide the following updates/ information:-

1. Land Commission of Central Government of China has completed its audit on land titles and is currently conducting the measuring works to determine the exact total measurement area of the land and buildings and ancillary facilities including 320KVA power distribution equipment, water supply system, roads surrounding the factory and enclosing wall located at No. 3 Wolong North Road, Yantai City (collectively known as “Property”), as part of the final stage of the Property ownership transfer process from Huangwu Subdistrict Office, Zhifu District,Yantai City, People’s Republic of China ("Huangwu Subdistrict Office") to China Ouhua.
2. At this juncture, the Board is unable to ascertain the expected completion date of the transfer of the ownership of the Property to China Ouhua as the duration to be taken for the said transfer from state-owned Huangwu Subdistrict Office is reckoned to be hard to determine.
3. Since signing the Sale and Purchase Agreement (“SPA”) between China Ouhua and Huangwu Subdistrict Office on 17 December 2013, China Ouhua has not been paying yearly rental of land, which comprises the Property to the latter.
4. As stated in the Note 12 to the Audited Financial Statements for the financial year ended 31 December 2015, the Directors are of the view that the deposit of RMB118,800,000.00 paid to Huangwu Subdistrict Office for the acquisition of the Property will be refunded in the event that the transaction is not completed.

This announcement dated 9 May 2016.