China Traditional Chinese Med Hldg CoLtd : INSIDE INFORMATION APPROVAL OF REGISTRATION AND PROPOSED ISSUE OF MEDIUM-TERM NOTES AT THE NATIONAL ASSOCIATION OF FINANCIAL MARKET INSTITUTIONAL INVESTORS

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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) INSIDE INFORMATION APPROVAL OF REGISTRATION AND PROPOSED ISSUE OF MEDIUM-TERM NOTES AT THE NATIONAL ASSOCIATION OF FINANCIAL MARKET INSTITUTIONAL INVESTORS

This announcement is made by China Traditional Chinese Medicine Holdings Co. Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company hereby announces that the Company has applied to the National Association of Financial Market Institutional Investors (the "Association") for the registration of the proposed issue (the "Issue") of medium-term notes in an aggregate amount of RMB4,500 million (the "Notes") and the proposed issue of the first tranche of the Notes with principal amount of RMB2,500 million and maturity of three years (the "First Tranche").

On 9 November 2016, the Company received a notice (the "Notice") issued by the Association which stated, among other things, that (i) the Issue is duly registered at the Association; (ii) the Notes may be issued by the Company in multiple tranches within two years from the date of the Notice; and (iii) the Company shall comply with the applicable rules, regulations and requirements stipulated by the Association in respect of the Issue, including the disclosure requirements and the intended use of the proceeds from the Issue.

A memorandum containing information of the Group, the Issue and the First Tranche has been disclosed on the website of the Association (http://zhuce.nafmii.org.cn/). The memorandum and other disclosure documents will also be published on the website of China Money (http://www.chinamoney.com.cn/) and the website of Shanghai Clearing House (http://www.shclearing.com/) before the issue of the Notes.

The Company intends to use the proceeds from the issue of the First Tranche in the following manner:

(i) RMB500 million will be used for the repayment of debts; (ii) RMB500 million will be used for expansion of production facilities; and (iii) RMB1,500 million will be used as the working capital of the Group. The Company will make further announcements in relation to the results of the Issue as and when appropriate. Shareholders and potential investors of the Company are reminded that the Issue may or may not materialise and are advised to exercise caution when dealing in the securities of the Company.

By order of the Board

China Traditional Chinese Medicine Holdings Co. Limited WU Xian

Chairman

Hong Kong, 9 November 2016

As at the date of this announcement, the board of directors comprises twelve directors, of which Mr. WU Xian, Mr. YANG Bin and Mr. WANG Xiaochun are executive directors; Mr. LIU Cunzhou, Mr. DONG Zenghe, Mr. ZHAO Dongji, Ms. HUANG He and Ms. TANG Hua are non-executive directors; and Mr. ZHOU Bajun, Mr. XIE Rong, Mr. YU Tze Shan Hailson and Mr. LO Wing Yat are independent non-executive directors.