Bai Guo Yuan Group: Controlling Shareholder Plans to Increase Holdings of Company's 10 million H shares.

On the evening of December 12, Baiguoyuan Group announced on the Hong Kong Stock Exchange that the company had received notification from its controlling shareholder, Yu Huiyong. Yu Huiyong intends to acquire a total of no more than 10 million H shares through open market transactions within twelve months from the date of this announcement to increase his total holding of H shares in the company. As of the date of this announcement, Yu Huiyong, together with entities controlled by him, holds equity in a total of 736,250,759 H shares, accounting for approximately 36.8% of the total number of issued shares of the company.