China Traditional Chinese Medicine : VOLUNTARY ANNOUNCEMENT - MARKETING AUTHORISATION FOR HUASHI BAIDU GRANULES

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CHINA TRADITIONAL CHINESE MEDICINE HOLDINGS CO. LIMITED ʕ਷ʕᖹછٰϞࠢʮ̡

(Incorporated in Hong Kong with limited liability)

(Stock Code: 570)

VOLUNTARY ANNOUNCEMENT

MARKETING AUTHORISATION FOR HUASHI BAIDU GRANULES

This announcement is made by China Traditional Chinese Medicine Holdings Co. Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis to keep its shareholders and potential investors informed of the latest business development of the Group.

Reference is made to the announcement of the Company dated 30 March 2020 (the "Announcement") in relation to that the Company accepted the transfer of clinical trial permission, patent and drug registration certificate of Huashi Baidu granules through Guangdong Yifang. Unless the context requires otherwise, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

On 2 March 2021, National Medical Products Administration has released working update, granting marketing authorisation for Huashi Baidu granules of Guangdong Yifang through a special approval procedure for emergency approval. Huashi Baidu granules is the transformation of the achievement of Huashi Baidu formula selected by Academician Huang Luqi from the clinical front line of anti-epidemic in Wuhan since the outbreak of COVID-19. It is also one of the varieties that have been reviewed and approved for the first time according to the requirement of "category 3.2 other compound preparations of traditional Chinese Medicine from ancient classical prescriptions" of "Requirements for Registration, Classification and Application of traditional Chinese Medicine" (No. 68 of 2020) after the reform of the registration and classification of TCM.

Since the release of the Announcement, the Group, in cooperation with the CACMS, has been responsible for the commercialised production and the research on improving quality standards of Huashi Baidu granules, and has taken advantage of the advanced manufacturing technology, strict quality standards and complete management of the whole production process to promote the transformation of scientific and technological achievement of the innovative TCM drugs. Upon getting the marketing authorisation of Huashi Baidu granules, Guangdong Yifang is ready for large-scale mass production, which will provide strong product support for TCM giving full play to a unique advantage and role in dealing with new and major public health emergencies.

Huashi Baidu granules is an effective drug for diseases caused by COVID-19 acquired by China National Pharmaceutical Group Co., Ltd. ("CNPGC"), the ultimate controlling shareholder of the Company, after getting conditional marketing authorisation for the first inactivated vaccine of COVID-19 in China. As the core platform of the modern TCM sector of CNPGC, the Group will follow the development rules of TCM industry, continue to give full play to the advantages of the whole industrial chain in the pharmaceutical field of TCM, so as to make contribution to improve the vitality of the development of TCM industry, speed up the high-quality development of TCM, and to realize the inheritance and innovation of TCM.

By order of the Board

China Traditional Chinese Medicine Holdings Co. Limited

WU Xian

Chairman

Hong Kong, 3 March 2021

As at the date of this announcement, the Board comprises twelve Directors, of which Mr. WU Xian, Mr. WANG Xiaochun and Mr. YANG Wenming are executive Directors; Mr. YANG Shanhua, Ms. LI Ru, Mr. YANG Binghua, Mr. WANG Kan and Mr. KUI Kaipin are non-executive Directors; and Mr. XIE Rong, Mr. YU Tze Shan Hailson, Mr. QIN Ling and Mr. LI Weidong are independent non-executive Directors.