VOLUNTARY ANNOUNCEMENT: THE GLOBAL INNOVATION PRODUCT OF THE GROUP STC3141 WAS APPROVED TO COMMENCE PHASE IIa CLINICAL RESEARCH IN RELATED TO COVID-19 IN BELGIUM

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China Grand Pharmaceutical and Healthcare Holdings Limited

遠大醫藥健康控股有限公司*

(Incorporated in Bermuda with limited liability)

(Stock Code: 00512)

VOLUNTARY ANNOUNCEMENT

THE GLOBAL INNOVATION PRODUCT OF THE GROUP STC3141 WAS

APPROVED TO COMMENCE PHASE IIa CLINICAL RESEARCH IN RELATED

TO COVID-19 IN BELGIUM

This announcement is made by the board of directors (the "Board") of China Grand Pharmaceutical and Healthcare Holdings Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis.

The Board is pleased to announce that the Group's wholly-owned subsidiary Grand Medical Pty Ltd (an innovative drug research and development center established by the Group in Australia) is developing a global innovative drug STC3141 for the field of severe infections, which has recently received approval for a phase IIa clinical trial in Belgium for the treatment of Coronavirus Disease 2019 ("COVID-19").

STC3141 Phase IIa clinical trial for the treatment of COVID-19 approved in Belgium will be a randomized open-arm study of 25 patients enrolled in at least 3 research centers, aiming to study and evaluate the safety and efficacy of STC3141 in the treatment of severe viral pneumonia caused by COVID-19 infection. This clinical trial will further expand the scope of application of the product, accumulate more data to comprehensively evaluate the risks and benefits of late-stage clinical trials, and accelerate the global development process of the product.

The field of severe anti-infection is one of the core strategic areas of the Group. STC3141 is a global innovative product with a new mechanism of action. It neutralizes extracellular protein and neutrophils trap net to reverse the body organ damage caused by the excessive immune response and can be used for a variety of severe indications, such as sepsis and acute respiratory distress syndrome ("ARDS") and other clinically high-mortality diseases without effective treatment. The product has a novel mechanism of action and the results of related pre-clinical research have been published in the top academic journal "Nature Communications" in February 2020, which has far-reaching academic influence. In terms of clinical research, the product has been approved in Australia in May 2020 to carry out phase

1. clinical research for the treatment of ARDS in patients infected with COVID-19 and phase Ib clinical research for the treatment of sepsis. In early March this year, the product obtained approval from the National Medical Products Administration of the People's Republic of China ("NMPA") to carry out phase Ib clinical research in patients with ARDS. The approval of the Phase IIa clinical trial for the treatment of COVID-19 in Belgium is another important milestone in the development of the project.

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The Group always puts focus on the R&D of innovative products and advanced technologies. Sticking to patients-centered and innovation-driven, the Group will continue to increase its investment in the world-class innovative products and advanced technologies to meet unmet clinical needs, and enrich product pipeline and improve supply chain. The Group adopts the strategy of "global expansion and dual-cycle operation", forming a new pattern of domestic and international cycles that synergize with each other. In this way, the Group can make full use of its industrial advantages and research and development capabilities, to accelerate commercialization process for innovative products and provide patients with more advanced and diverse treatment options in the world.

Warning

The aforementioned product is still in the R&D stage. The approval of commercialization and manufacturing of such products is subject to various factors with uncertainty. Shareholders and prospective investors of the Company are advised to exercise caution when dealing in the securities of the Company.

By order of the Board

China Grand Pharmaceutical and

Healthcare Holdings Limited

Liu Chengwei

Chairman

Hong Kong, 19 April 2021

As at the date of this announcement, the Board comprises four executive directors, namely, Mr. Liu Chengwei, Mr. Hu Bo, Dr. Shao Yan and Dr. Niu Zhanqi and three independent non- executive directors, namely, Ms. So Tosi Wan, Winnie, Dr. Pei Geng and Mr. Hu Yebi.

* For identification purpose only

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