Reference is made to the previous announcements released on 18 December 2013, 9 May 2014, 6 May 2015, 14 May 2015, 9 May 2016, 20 April 2017, 28 April 2017, 6 October 2017, 5 April 2018, 4 May 2018, 5 November 2018, 29 April 2019, 3 May 2019, 1 November 2019, 30 April 2020, 30 October 2020, 30 April 2021 and 28 October 2021.

The Board of Directors of China Ouhua (“Board”) wishes to update that the land title ownership has yet to be transferred to Yantai Fazenda Ouhua Winery Co., Ltd. (“Yantai Ouhua”).

There had been no substantial progress on the Transfer since last announcement made on 28 October 2021. The Municipal Bureau of Land and Natural Resources had coordinated with the relevant local government departments to resolve the historical land property rights related issues according to the procedures prescribed by Department of Natural Resources of Shandong Province.

The issue faced which has caused the delay in the Transfer process was the difficulty to determine the reasonable price for the Transfer so as not to cause losses to the state-owned property. In addition, the Transfer was also subject to compliance with the current relevant laws and regulations which did not exist at the time of acquisition of the property.

There was no confirmation given by any of the government officer on the completion date of the Application. Thus, the Board is unable to ascertain the completion date of the Transfer.

China Ouhua will proactively follow up with the relevant government authorities of the PRC to ensure the land title ownership is transferred to Yantai Ouhua.

Barring any unforeseen circumstances, the Board is of the view that the whole process should be able to complete within six (6) months from the date of this announcement.