K N Wellness* Announces Subsidiary's Lending of Funds Pursuant to Article 22, Paragraph 1, Item 2 of the Regulations Governing Lending and Endorsement Guarantees by Publicly Offered Companies

1. Date of Occurrence: 115/05/05 2. Recipient of Funds Lending: (1) Company Name: Shang Ping Resource Recycling Co., Ltd. (2) Relationship with the Company Lending Funds: Affiliated Company - Ji Wei Co., Ltd. (3) Lending Limit (Thousand Yuan): 466,234 (4) Original Remaining Balance of Lending (Thousand Yuan): 100,000 (5) Amount of New Lending (Thousand Yuan): 80,000 (6) Whether this is Fund Lending Authorized by the Board of Directors for Multiple Disbursements or Revolving Use to the Same Borrower: Yes (7) Outstanding Lending Balance as of the Date of Occurrence (Thousand Yuan): 180,000 (8) Reason for New Lending: Working capital turnover (1) Company Name: Shang Ping Resource Recycling Co., Ltd. (2) Relationship with the Company Lending Funds: Affiliated Company - Da Ning Co., Ltd. (3) Lending Limit (Thousand Yuan): 254,402 (4) Original Remaining Balance of Lending (Thousand Yuan): 50,000 (5) Amount of New Lending (Thousand Yuan): 70,000 (6) Whether this is Fund Lending Authorized by the Board of Directors for Multiple Disbursements or Revolving Use to the Same Borrower: No (7) Outstanding Lending Balance as of the Date of Occurrence (Thousand Yuan): 120,000 (8) Reason for New Lending: Working capital turnover (1) Company Name: Shang Ping Resource Recycling Co., Ltd. (2) Relationship with the Company Lending Funds: Affiliated Company - Ji Ding Materials Co., Ltd. (3) Lending Limit (Thousand Yuan): 64,864 (4) Original Remaining Balance of Lending (Thousand Yuan): 0 (5) Amount of New Lending (Thousand Yuan): 50,000 (6) Whether this is Fund Lending Authorized by the Board of Directors for Multiple Disbursements or Revolving Use to the Same Borrower: No (7) Outstanding Lending Balance as of the Date of Occurrence (Thousand Yuan): 50,000 (8) Reason for New Lending: Working capital turnover 3. Collateral Provided by the Company Receiving Funds Lending: (1) Content: None (2) Value (Thousand Yuan): 0 4. Most Recent Financial Statement of the Company Receiving Funds Lending: (1) Capital (Thousand Yuan): 920,000 (2) Accumulated Profit (Loss) Amount (Thousand Yuan): -133,766 5. Interest Rate Method: Ji Wei Co., Ltd. - Annual interest rate 1% Da Ning Co., Ltd. - Annual interest rate 1% Ji Ding Materials Co., Ltd. - Annual interest rate 2.2%~2.6% 6. Repayment: (1) Conditions: Repayment with working capital (2) Date: May 4, 116 7. Outstanding Lending Balance as of the Date of Occurrence (Thousand Yuan): 1,360,000 8. Ratio of Outstanding Lending Balance to the Net Worth in the Most Recent Financial Statement of the Publicly Offered Company: 16.11 9. Source of Funds Lent by the Company: Subsidiary itself, financial institutions, parent company 10. Other Matters to Note: None.