China Health : TERMINATION OF PLACING AGREEMENT

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

China Health Group Limited

中國衛生集團有限公司

(Carrying on business in Hong Kong as CHG HS Limited)

(Incorporated in Bermuda with limited liability)

(Stock Code: 673)

TERMINATION OF PLACING AGREEMENT

Reference is made to the announcement dated 28 August 2020 (the "Announcement") of China Health Group Limited (the "Company") in relation to the Placing. Capitalised terms used herein shall have the same meanings as those defined in the Announcement unless otherwise specified.

The Board announces that due to current stock market sentiment, the total number of Placing Shares successfully placed by the Placing Agent by 17 September 2020, being the last day of the Placing Period, falls below 250,000,000 Placing Shares. Under such circumstances, the Company exercised its right pursuant to the terms of the Placing Agreement to terminate the Placing Agreement with effect from 18 September 2020, and accordingly the Placing will not proceed. Upon termination of the Placing Agreement, all liabilities of the parties under the Placing Agreement shall cease and determine and no party shall have any claim against the other party in respect of any matter or thing arising out of or in connection with the Placing Agreement, save in respect of any antecedent breach of any obligation under the Placing Agreement.

The Board is of the view that the termination of the Placing Agreement has no material adverse impact on the business operation and financial position of the Group.

By order of the Board

China Health Group Limited

Zhang Fan

Chairman of the Board and Executive Director

Hong Kong, 18 September 2020

As at the date of this announcement, the Board comprises three executive Directors, namely, Mr. Zhang Fan (chairman), Mr. Chung Ho and Mr. Wang Jingming; three non-executive Directors, namely, Mr. Weng Yu, Mr. Xing Yong and Mr. Huang Lianhai; and four independent non-executive Directors, namely, Mr. Jiang Xuejun, Mr. Du Yanhua, Mr. Lai Liangquan and Ms. Meng Junfeng.