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Fu Shou Yuan International Group Limited 福壽園國際集團有限公司 (incorporated in the Cayman Islands with limited liability) (Stock Code: 1448)

VOLUNTARY ANNOUNCEMENT

REGARDING STRATEGIC INVESTMENT IN

This announcement is made by Fu Shou Yuan International Group Limited (the “Company”, together with its subsidiaries, the “Group”) on a voluntary basis for the purpose of keeping its shareholders and potential investors informed of the latest business development of the Group.

The board of directors (the “Board”) of the Company is pleased to announce that recently the Company has completed the following two investments in Guangxi.

SHANGHAI FU SHOU YUAN’S INVESTMENT IN GUANGXI HUAZU YUAN LOCATED IN

On September 15, 2017, Shanghai Fu Shou Yuan Industry and Development Co., Ltd* (上海福壽園實業發展有限公司)(“Shanghai Fu Shou Yuan”), an indirect wholly-owned subsidiary of the Company, entered into an investment agreement (the “Investment Agreement”) with Huazu Yuan Beijing Investment Co., Ltd* (華祖園 （北京）投資有限公司)(“Huazu Yuan Beijing”) and Mr. Huang Shipeng (黃世鵬), each being an independent third party of the Company, in connection with the investment into Guangxi Huazu Yuan Investment Co., Ltd* (廣西華祖園投資有限公司) (the “Target Company”or“Guangxi Huazu Yuan”) located in Fangchenggang, Guangxi.

Pursuant to the Investment Agreement, the total investment from Shanghai Fu Shou Yuan to the Target Company amounts to RMB 45.6 million, among which RMB 15 million will be injected as capital contribution and the remaining RMB 30.6 million

—1— will be put into Target Company’s capital reserve fund as premium. The registered capital of the Target Company will be increased to RMB 25 million from RMB10 million. Shanghai Fu Shou Yuan will subscribe for new registered capital of RMB 15 million, representing 60% of the total equity interests of the Target Company.

JOINT VENTURE LOCATED IN BETWEEN SHANGHAI FU SHOU YUAN AND HUAZU YUAN BEIJING

Huazu Yuan Beijing has signed an investment agreement earlier with Qinbei People’s Government of Qinzhou City, Guangxi (廣西欽州市欽北區人民政府), pursuant to which Huazu Yuan Beijing will invest, develop and operate in cemetery industry in Qinbei District through invitation of foreign investment and capital. On the basis of the aforementioned investment agreement, Shanghai Fu Shou Yuan and Huazu Yuan Beijing will be co-operating with the People’s Government of Qinzhou City, with an aim to develop new project. On July 31, 2017, Shanghai Fu Shou Yuan and Huazu Yuan Beijing entered into the Joint Venture Cooperation Agreement (“JV Agreement”) in Shanghai. Pursuant to the JV Agreement, a joint venture company, Qinzhou Huazu Yuan Investment Co., Ltd. (欽州華祖園投資有限公司)(“Qinzhou Huazu Yuan”), will be established in Qinzhou City with registered capital amounting to RMB30 million, among which, Shanghai Fu Shou Yuan will contribute RMB18 million and Huazu Yuan Beijing will contribute the remaining RMB 12 million, representing 60% and 40% of the equity interest respectively. Qinzhou Huazu Yuan will focus on provision of burial and funeral service.

REASONS FOR AND BENEFITS OF THE INVESTMENT IN THE TARGET COMPANY

The Target Company is principally engaged in the provision of burial and funeral services. Investment in the Target Company represents the Group’s first presence in Guangxi and enables the Group to expand its business geographically. The Board is of the view that the investment will facilitate direct penetration into this area in the PRC, which the Board believes is of great potential for long term development. The Board believes that the Group’s operational experience and expertise in the burial and funeral industry, together with the local connection of the Target Company, will create synergy and enhance the Group’s overall financial capacity. This is in line with Group’s strategy of reinforcing its market position and improve its core competitive nationwide.

By order of the Board Fu Shou Yuan International Group Limited BAI Xiaojiang Chairman and Executive Director Hong Kong, September 18, 2017

As at the date of this announcement, the executive directors of the Company are Mr. Bai Xiaojiang, Mr. Tan Leon Li-an and Mr. Wang Jisheng; the non-executive directors are Mr. Ma Xiang, Mr. Lu Hesheng and Mr. Huang James Chih-Cheng; and the independent non-executive directors are Mr. Chen Qunlin, Mr. Luo Zhuping, Mr. Ho Man and Ms. Wu Jianwei.

* for identification purpose only

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