HAILY: CIRCULAR TO SHAREHOLDERS IN RELATION TO THE (I) PROPOSED BONUS ISSUE OF 196,152,700 NEW ORDINARY SHARES IN HAILY ("HAILY SHARE(S)" OR "SHARE(S)") ("BONUS SHARE(S)") ON THE BASIS OF 1 BONUS SHARE FOR EVERY 1 EXISTING HAILY SHARE HELD BY THE SHAREHOLDERS OF HAILY WHOSE NAMES APPEAR IN THE RECORD OF DEPOSITORS OF THE COMPANY AT THE CLOSE OF BUSINESS ON AN ENTITLEMENT DATE TO BE DETERMINED AND ANNOUNCED LATER ("PROPOSED BONUS ISSUE OF SHARES"); AND (II) PROPOSED FREE WARRANTS ISSUE OF UP TO 196,152,700 FREE WARRANTS IN HAILY ("WARRANT(S)") ON THE BASIS OF 1 WARRANT FOR EVERY 2 EXISTING SHARES HELD BY THE SHAREHOLDERS OF HAILY WHOSE NAMES APPEAR IN THE RECORD OF DEPOSITORS OF THE COMPANY AT THE CLOSE OF BUSINESS ON AN ENTITLEMENT DATE TO BE DETERMINED AND ANNOUNCED LATER ("PROPOSED FREE WARRANTS ISSUE")