China Traditional Chinese Medicine : VOLUNTARY ANNOUNCEMENT - AUTHORIZED TO MANUFACTURE THE TOUJIE QUWEN GRANULE

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CHINA TRADITIONAL CHINESE MEDICINE HOLDINGS CO. LIMITED

中國中藥控股有限公司

(Incorporated in Hong Kong with limited liability)

（Stock Code: 570）

VOLUNTARY ANNOUNCEMENT

AUTHORIZED TO MANUFACTURE THE TOUJIE QUWEN GRANULE

This announcement is made by China Traditional Chinese Medicine Holdings Co. Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis to keep its shareholders and potential investors informed of the latest business development of the Group.

According to an announcement of Guangdong Food and Drug Administration ("GDFDA") recently, an institution self-made formula - Toujie Quwen Granules developed by Guangzhou Eighth People's Hospital got approved through the contingency application procedure for Guangdong medical institution self-made traditional Chinese medicine ("TCM") formula and authorized Guangdong Yifang Pharmaceutical Co., Ltd. ("Guangdong Yifang"), a controlled subsidiary of the Company, to manufacture and prepare. On 8 February 2020, GDFDA, Health Committee of Guangdong Province and Guangdong Administration of Traditional Chinese Medicine jointly announced the "a notice regarding the clinical use of Toujie Quwen Granules (formerly known as "No. 1 formula for pneumonia")", which allowed the designated hospitals for treating the novel coronavirus pneumonia ("NCP") to use the Toujie Quwen Granules depending on the clinical needs, without additional approval from GDFDA. For those non-designated hospitals in Guangdong, GDFDA will review through a prioritized approval process. The approved hospitals can directly apply to Guangdong Yifang for distribution.

Since the outbreak of NCP, National Health Commission has emphasized giving full play to the role of the TCM treatment, selecting effective TCM prescriptions and finished drugs, and improving the effectiveness of clinical treatment. After the expert consulting meeting held by Guangdong Epidemic Prevention and Control Headquarters, assessing the clinical observation results on Toujie Quwen Granules, they suggested that Toujie Quwen Granules can apparently mitigate the clinical symptoms of NCP (light), having trend on slowing down the progression of the severe NCP which showing relatively good clinical value.

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Relying on the previous experiences and data accumulated in the research process of concentrated TCM granules, Guangdong Yifang quickly completed the manufacturing, test and application of the Toujie Quwen Granules and acquired the approval of medical institutions authorized manufacturing and preparing of the formula. At present, Guangdong Yifang has actively organized manufacturing and distribution. The Group will keep close to the progress of the outbreak, actively commit to our social responsibility of pharmaceutical enterprises and devote to fighting for the outbreak and the health and safety of people.

By Order of the Board

China Traditional Chinese Medicine Holdings Co. Limited

WU Xian

Chairman

Hong Kong, 9 February 2020

As at the date of this announcement, the Board comprises twelve Directors, of which Mr. WU Xian, Mr. WANG Xiaochun and Mr. YANG Wenming are executive Directors; Mr. YANG Shanhua, Ms. LI Ru, Mr. YANG Binghua, Mr. WANG Kan and Mr. KUI Kaipin are non-executive Directors; and Mr. XIE Rong, Mr. YU Tze Shan Hailson, Mr. QIN Ling and Mr. LI Weidong are independent non-executive Directors.

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