Hosa International Limited entered into a non-legally binding letter of intent to acquire Fitness centres in China from Shi Hongliu and Shi Hongyan.

Hosa International Limited is principally engaged in the design and production of mid-to-high end sportswear products. The products include swimwear, fitness wear and sports underwear which are sold under Hosa and Water Cube brand. The Company operates its business through four segments. The Swimwear-Hosa segment is engaged in the design, manufacture and wholesale of swimwear under the brand name of Hosa. The Swimwear-Water Cube segment is engaged in the design, manufacture and wholesale of swimwear under the brand name of Water Cube. The Fitness Wear-Hosa segment is engaged in the design, manufacture and wholesale of fitness wear under the brand name of Hosa. The Sports Underwear-Hosa segment is engaged in the design, manufacture and wholesale of sports underwear under the brand name of Hosa.