Shandong Weigao Medical Polymer : INSIDE INFORMATION PROPOSED SPIN-OFF AND LISTING OF SHANDONG WEIGAO ORTHOPAEDIC DEVICE COMPANY LIMITED ON A STOCK EXCHANGE IN THE PRC

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.

山 東 威 高 集 團 醫 用 高 分 子 製 品 股 份 有 限 公 司

Shandong Weigao Group Medical Polymer Company Limited *

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

(Stock Code: 1066)

INSIDE INFORMATION PROPOSED SPIN-OFF

AND LISTING OF SHANDONG WEIGAO

ORTHOPAEDIC DEVICE COMPANY LIMITED

ON A STOCK EXCHANGE IN THE PRC

This announcement is made by Shandong Weigao Group Medical Polymer Company Limited (the "Company") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The Company is considering a possible spin-off and separate listing of Shandong Weigao Orthopedic Device Company Limited*（山東威高骨科材料股份有限公司）("Weigao Ortho") and its subsidiaries on a Stock Exchange in the People's Republic of China ("PRC") (the "Proposed Spinoff and Listing"). Weigao Ortho is a non-wholly-owned subsidiary of the Company and currently mainly engages in the research and development, production and sale of spine, trauma and joint orthopedic implants.

On 30 December 2019, the financial advisor of Weigao Ortho made a submission to Shandong Regulatory Bureau of China Securities Regulatory Commission regarding the application for pre-listing tutoring process in connection with the Proposed Spin-off and Listing.

• For identification purpose only

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The Company will submit an application in relation to the Proposed Spin-off and Listing to the Hong Kong Stock Exchange for approval pursuant to Practice Note 15 of the Listing Rules in due course.

The Proposed Spin-off and Listing, if materialised, will constitute a deemed disposal under Chapter 14 of the Listing Rules. The Company will make further disclosure as and when appropriate pursuant to the relevant requirements of the Listing Rules. Shareholders of the Company and potential investors should note that, the Proposed Spinoff and Listing is subject to, inter alia, the prevailing market conditions and approvals from relevant authorities, including the China Securities Regulatory Commission and the Hong Kong Stock Exchange. Accordingly, shareholders of the Company and potential investors should be aware that, the Company does not guarantee that the Proposed Spin-off and Listing will proceed nor the timing thereof. Shareholders of the Company and potential investors are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

Shandong Weigao Group Medical Polymer Company Limited

Zhang Hua Wei

Chairman

Hong Kong, 30 December 2019

As at the date of this announcement, the Board comprises:

Mr. Zhang Hua Wei (Executive Director)

Mr. Long Jing (Executive Director)

Mr. Wang Yi (Executive Director)

Mr. Gong Jian Bo (Executive Director)

Mrs. Zhou Shu Hua (Non-executive Director)

Mr. Lo Wai Hung (Independent non-executive Director)

Mrs. Fu Ming Zhong (Independent non-executive Director)

Mrs. Wang Jin Xia (Independent non-executive Director)

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