Shanghai Fosun Pharmaceutical : CLARIFICATION ANNOUNCEMENT ON MEDIA REPORTS IN RELATION OF THE NON-BINDING PROPOSAL(H SHARES)

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上 海 復 星 醫 藥（ 集 團 ）股 份 有 限 公 司

Shanghai Fosun Pharmaceutical (Group) Co., Ltd.*

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 02196)

CLARIFICATION ANNOUNCEMENT ON MEDIA REPORTS IN RELATION OF THE NON-BINDING PROPOSAL

This announcement is made by Shanghai Fosun Pharmaceutical (Group) Co., Ltd.* (the ''Company'', together with its subsidiaries, the ''Group'') to explain recent media reports in relation to the Group.

Recently, there were media reports stated that the Group has made a bid for the acquisition of part of the equity interests of Arbor Pharmaceuticals (''Arbor'' or the ''Target Company''). With respect to the above reports, the Company has taken steps to investigate and hereby makes the following clarification:

THE NON-BINDING PROPOSAL

On 19 July 2017, Fosun Industrial Co., Limited (''Fosun Industrial''), a wholly-owned subsidiary of the Company, had made a non-binding proposal to Arbor in relation to the participation in the bidding for a part of the equity interests of Arbor (the ''Non-binding Proposal''). As at the date of this announcement, the Non-binding Proposal is still in a bidding process on a non-exclusive basis. The detailed terms and the operational and financial status of the Target Company (including the amount proposed by Fosun Industrial for certain part of the equity interests of Arbor) could not be disclosed due to reasons of trading secrets and confidentiality requirement of the bidding procedure.

The Non-binding Proposal shall be confirmed by the relevant parties pending the selection and acceptance by Arbor (or its existing shareholders) in respect of the relevant proposal made by the participants, including Fosun Industrial. In the meantime, Fosun Industrial shall further determine the bidding arrangement based on its due diligence against Arbor and its overall evaluation on the future business development of Arbor.

INFORMATION ON THE TARGET COMPANY

Arbor is established in 2010, with its headquarters based in Atlanta, Georgia, the United States of America. Arbor is principally engaged in the specialty drugs (including prescription drugs in relation to departments of cardiovascular, hospital, neuroscience, and pediatric) and generic drugs.

PURPOSE AND IMPACT OF THE NON-BINDING PROPOSAL

In the event of the Non-binding Proposal made by Fosun Industrial is successful, it will enhance and improve the Group's drug manufacture and research and development capacity and the degree of internationalization.

OTHER REMARKS

The board of directors of the Company wishes to emphasise that the Non-binding Proposal is subject to the selection and acceptance by Arbor or its existing shareholders in respect of the relevant proposal made by the participants, including Fosun Industrial, and to the entering into of certain final legally binding documents by the relevant parties thereto and the terms thereof, therefore, the Non-binding Proposal may or may not proceed. Further announcement(s) in respect of the Non-binding Proposal will be made by the Company as and when appropriate in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The Company wishes to remind the Company's shareholders and potential investors to refer to announcements posted on the website of The Stock Exchange of Hong Kong Limited (http:// www.hkexnews.hk) and the Company's website when seeking information about the Group. The Company's shareholders and potential investors should exercise caution when trading in the Company's securities.

By order of the Board

Shanghai Fosun Pharmaceutical (Group) Co., Ltd.* Chen Qiyu

Chairman

Shanghai, the People's Republic of China 14 August 2017

As at the date of this announcement, the executive directors of the Company are Mr. Chen Qiyu, Mr. Yao Fang and Mr. Wu Yifang; the non-executive directors of the Company are Mr. Guo Guangchang, Mr. Wang Qunbin, Ms. Kang Lan and Mr. Wang Can; and the independent non-executive directors of the Company are Mr. Cao Huimin, Mr. Jiang Xian, Dr. Wong Tin Yau Kelvin and Mr. Wai Shiu Kwan Danny.

* for identification purposes only