China Traditional Chinese Med Hldg CoLtd : RESIGNATION OF EXECUTIVE DIRECTOR; CHANGE OF MANAGING DIRECTOR; CHANGE OF COMPOSITION OF BOARD COMMITTEES; AND CHANGE OF AUTHORISED REPRESENTATIVE

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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)

RESIGNATION OF EXECUTIVE DIRECTOR; CHANGE OF MANAGING DIRECTOR; CHANGE OF COMPOSITION OF BOARD COMMITTEES; AND CHANGE OF AUTHORISED REPRESENTATIVE RESIGNATION OF EXECUTIVE DIRECTOR AND MANAGING DIRECTOR

The board (the "Board") of directors (the "Directors") of China Traditional Chinese Medicine Holdings Co. Limited (the "Company", together with its subsidiaries, the "Group") announces that Mr. YANG Bin ("Mr. YANG") has resigned as an executive Director and the Managing Director of the Company with effect from 31 March 2017 due to health reason. Mr. YANG has vacated from the offices as member of the Nomination Committee and the Strategic Committee of the Company upon his resignation as an executive Director becoming effective.

Mr. YANG has confirmed that he has no disagreement with the Board and there is no matter relating to his resignation that needs to be brought to the attention of the shareholders of the Company.

The Board would like to express its sincere gratitude to Mr. YANG for his valuable contribution to the Company during his tenure of service.

APPOINTMENT OF MANAGING DIRECTOR

The Board announces that Mr. WANG Xiaochun ("Mr. WANG"), an executive Director, has been appointed as the Managing Director of the Company with effect from 31 March 2017. He will be responsible for the implementation of the important policies and development strategies approved by the Board and has direct management responsibility for the daily operations of the Group. Mr. WANG has also been appointed as a member of the Nomination Committee of the Company. The biographical details of Mr. WANG are set out below:

Mr. WANG, aged 49, was the founder of Tongjitang Chinese Medicines Company ("Tongjitang"), a leading traditional Chinese medicines enterprise in China. Tongjitang was listed on the New York Stock Exchange in 2007 and privatised in 2011. The entire equity interest in Tongjitang was subsequently acquired by the Group in October 2013, following which Mr. WANG has been appointed as an executive Director. Prior to his appointment as the Managing Director, Mr. WANG was the Deputy Managing Director of the Company principally responsible for overseeing the Group's sales, human resources, internal audit and government relations. He is also a member of the Strategic Committee of the Company and holds directorships in a number of subsidiaries of the Company. Mr. WANG received his bachelor's degree in law from the Southwest University of Political Science and Law in China in 1989.

Save as disclosed above, Mr. WANG (i) does not hold any other position within the Group; (ii) has not held directorships in any other listed companies in the past three years; (iii) has not held any other major appointment and professional qualifications; and (iv) does not have any relationship with any directors, senior management or substantial or controlling shareholders of the Company (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")).

Mr. WANG will enter into a supplemental appointment letter (the "Supplemental Letter") with the Company in relation to his appointment as the Managing Director for an initial term of two years. Pursuant to the Supplemental Letter, the aggregate remuneration for Mr. WANG as an executive Director and the Managing Director will be RMB1,860,000 per annum. Other terms of the original appointment letter in relation to his appointment as an executive Director (including his entitlement to receive discretionary bonuses, shares options or other benefits as may be decided by the Board or the Remuneration Committee of the Company having regard to his performance and duties, results and profitability of the Group, and the prevailing market condition) shall remain unchanged. His remuneration was determined by the Remuneration Committee of the Company in accordance with the Company's remuneration policy and with reference to his duties, market rate and his time, effort, expertise and responsibilities to be exercised on the Group's affairs.

As at the date of this announcement, save for the 376,735,042 ordinary shares of the Company held by Hanmax Investment Limited (a company wholly owned by Mr. WANG), Mr. WANG does not have any other interest in the shares, underlying shares or debentures of the Company and/or its associated corporations within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Save as disclosed above, there are no other matters concerning Mr. WANG that need to be brought to the attention of the shareholders of the Company, nor is there any information relating to Mr. WANG that is required to be disclosed pursuant to Rules 13.51(2)(h) to (v) of the Listing Rules.

The Board would like to welcome the appointment of Mr. WANG as the Managing Director.

CHANGE OF AUTHORISED REPRESENTATIVE

Following the resignation of Mr. YANG, he has ceased to be an authorised representative of the Company for the purpose of Rule 3.05 of the Listing Rules (the "Authorised Representative") on 31 March 2017.

Mr. WANG has been appointed as an Authorised Representative with effect from 31 March 2017.

By order of the Board

China Traditional Chinese Medicine Holdings Co. Limited WU Xian

Chairman

Hong Kong, 31 March 2017

As at the date of this announcement, the board of directors comprises eleven directors, of which Mr. WU Xian 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.