Hoshentang Announces Cash Capital Increase by Key Subsidiary Holy Stone Holdings Co., Ltd.

1. Date of Board Resolution or Company Decision: 115/08/04 2. Number of Shares Issued: 1,500,000 shares 3. Par Value per Share: USD 1 4. Total Issuance Amount: USD 1,500,000 5. Issuance Price: USD 1 per share 6. Number of Shares for Employee Stock Subscription Rights: Not applicable 7. Existing Shareholders' Subscription Ratio: 100% 8. Public Offering Method and Number of Shares: Not applicable 9. Handling of Fractional Shares and Unsubscribed Shares After Deadline: Not applicable 10. Rights and Obligations of the Newly Issued Shares: Same as previously issued shares 11. Use of Proceeds from the Capital Increase: Funding for factory construction by subsidiary 12. Subscription Record Date for Cash Capital Increase: 115/08/17 13. Final Transfer Cutoff Date: Not applicable 14. Start Date of Transfer Suspension: Not applicable 15. End Date of Transfer Suspension: Not applicable 16. Period for Payment of Share Subscription Amount: Not applicable 17. Contract Signing Date with Deposit Bank for Collection and Escrow: Not applicable 18. Authorized Institution for Subscription Payment Collection: Not applicable 19. Authorized Institution for Escrow of Subscription Funds: Not applicable 20. Other Matters to be Disclosed: None