In relation to the announcement made on 6 May 2015 on the qualified opinion by the External Auditors, Messrs Helmi Talib & Co., the Board of Directors of CNOUHUA wishes to clarify that the paragraph 1 of the said announcement should be stated as follow:

1.  As stated in the Note 12 to the Audited Financial Statements for the financial year ended 31 December 2014, the Directors are of the view that the deposit of RMB118,800,000.00 paid to Huangwu Subdistrict Office, Zhifu District, Yantai City, PRC ("Huangwu Subdistrict Office") for the acquisition of all the land and buildings and ancillary facilities including 320KVA power distribution equipment, water supply system, roads surrounding the factory and enclosing wall (collectively known as "Assets") located at No. 3, Wolong North Road, Yantai City will be refunded in the event that the transaction is not completed.