YiChang HEC ChangJiang Pharmaceutical : UNAUDITED OPERATIONAL SUMMARY OF THE GROUP FOR THE FOURTH QUARTER OF 2019 AND ENTIRE YEAR OF 2019

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YiChang HEC ChangJiang Pharmaceutical Co., Ltd.

宜 昌 東 陽 光 長 江 藥 業 股 份 有 限 公 司

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

(Stock Code: 01558)

UNAUDITED OPERATIONAL SUMMARY OF THE GROUP FOR THE

FOURTH QUARTER OF 2019 AND ENTIRE YEAR OF 2019

This announcement is made by YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (the ''Company'', together with its subsidiaries, the ''Group'') pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors (the ''Board'') of the Company hereby informs the shareholders and potential investors of the Company that, based on the unaudited consolidated management accounts currently available to the Group and the preliminary assessment by the Company's management, the Group expected that the Company will record a revenue of approximately RMB6,220 million and approximately RMB1,780 million for the year ended 31 December 2019 and the three months from 1 October 2019 to 31 December 2019 respectively, representing an increase of approximately 145% and approximately 125% as compared to the year ended 31 December 2018 and the three months from 1 October 2018 to 31 December 2018 respectively. The expected increase in revenue of the Company is primarily attributed to: (i) the continuous increase in the sales revenue of Kewei, the Company's core product; (ii) the expansion of portfolio of the Company's products; and (iii) increasing penetration of the Company's products in medical institutions across the country as well as the continuous promotion efforts by the Company on its products in professional academic market.

The information set out in this announcement is only based on a preliminary assessment by the management of the Company according to the unaudited consolidated management accounts of the Group for the year ended 31 December 2019 and other information currently available to the Company, which has not been reviewed or audited by the Company's auditor. Details on the financial information for the year ended 31 December 2019 to be disclosed in the annual results announcement of the Company shall prevail.

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Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

On behalf of the Board

YiChang HEC ChangJiang Pharmaceutical Co., Ltd.

TANG Xinfa

Chairman

Hubei, the PRC

2 January 2020

As of the date of this announcement, the Board of the Company consists of Mr. JIANG Juncai, Mr. WANG Danjin, Mr. CHEN Yangui and Mr. LI Shuang as executive directors; Mr. TANG Xinfa and Mr. Eddy HUANG as non-executive directors; and Mr. TANG Jianxin, Mr. FU Hailiang and Mr. ZHAO Dayao as independent non-executive directors.

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