2022 / 08 / 04 Declaration 【Roo Hsing Declares All Actions Adopted in BOD and Shareholders Meeting are legitimate and Necessary Actions will be taken to Pursue Legal liability】

Concerning the recent incident of Wei Hao Investment Limited ("Wei Hao") in violation of legal procedures to replace its authorized representatives, the management team of Roo Hsing Co., Ltd. ("Roo Hsing") would like to express its most sincere apologies. However, all the turmoil is calmed by the director of Wei Hao (including three representatives appointed by Wei Hao), ipso facto, being discharged from the office of director, because during Wei Hao’s tenure as a director, more than one-half of the Roo Hsing's shares held by Wei Hao at the time Wei Hao is elected has been transferred. Although on August 2, 2022, Wei Hao declared that its three authorized representatives of directors resigned and Wei Hao will no longer assign any representative as a director of Roo Hsing, this does not change the fact that such three authorized representatives of Wei Hao have been vacant and discharged.

In order to back on track as soon as possible, Roo Hsing called a special board meeting on August 3, 2022. Mr. Chang Shoei Jiang who represents JDU Opportunities Limited is elected to act as the chairman of the board. With the leadership of the new chairman, Roo Hsing's top priority would be to investigate and clarify the unnecessary disturbances that occurred from July 15th to August 1st, 2022, and to legally recognize the internal and external affairs. In addition, to safeguard the rights and interests of Roo Hsing and all the shareholders, the management team will take necessary legal actions to comply with corporate governance and fulfill its social responsibilities as a listed company!

We would like to reemphasize, that all the resolutions made by the board and during the annual shareholders meeting (ASM) before July 15, 2022, are lawful and irrevocable. Our chairman, Mr. Chang Shoei Jiang, who took office since November 21, 2021, is eligible to sign off Financial Statements, contracts and to hold ASM and board meetings. After our continuous and dedicated negotiation with financial institutions, vendors, and competent authorities, our financial and business status is finally getting back on track.

As of June 30, 2022, Roo Hsing group aggregated revenue is about US$ 300 M, with a 13.36% growth compared to the same period last year. As entering the peak season of the garment industry, it is expected total turnover will keep growing over the next few months. In addition, the collection period for current account receivables is 90 days while actual recovery period is around 80 days according to our experiences. Speaking of disposition of dormant assets, Roo Hsing has already entered sale and purchase agreements for lands located in Cambodia, Nicaragua, and El Salvador, respectively. Based on the terms, Roo Hsing will receive US$ 17.8M by the end of this year. Once again, we would like to reaffirm that there is no overdue bank loans nor any bounced checks, and Roo Hsing's cash flow is adequate to support our daily operations.

The property seizure of our subsidiary in China, Bai Cheng Shi Mei Da Garment Co., Ltd., was in relation to a forgery that occurred by persons who are not employees of the company. The company is now taking legal actions to preserve its rights. Roo Hsing has already submitted reports and documentation to the competent authority in Taiwan regarding such event for the authority's examination.

Last but not least, the management team of Roo Hsing will make it its first priority to protect shareholders' interests and to strengthen corporate governance. Since over a third (1/3) of board members have been changed, Roo Hsing is only required to re-elect vacant board members according to the Company Act. Nevertheless, in response to the request of independent director, Chou, Chung Hsien, the board has decided to convene an extraordinary shareholders' meeting to re-elect all board members in advance, so as to regain the confidence of investors and the public market within the shortest possible time.