Shandong Weigao Medical Polymer : PROPOSED INTERIM DIVIDEND AND NOTICE OF THE SECOND EXTRAORDINARY GENERAL MEETING

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your licensed securities dealer, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your shares in Shandong Weigao Group Medical Polymer Company Limited, you should at once hand this circular and the enclosed proxy form to the purchaser or transferee or to the bank or licensed securities dealer or other agent through whom the sale or transfer was effected for transmission to the purchaser or transferee.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.

山 東 威 高 集 團 醫 用 高 分 子 製 品 股 份 有 限 公 司

Shandong Weigao Group Medical Polymer Company Limited *

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

(Stock Code: 1066)

PROPOSED INTERIM DIVIDEND

AND

NOTICE OF THE SECOND EXTRAORDINARY GENERAL MEETING

The notice convening the Second Extraordinary General Meeting to be held at 2/F, 18 Xingshan Road, Weihai Torch Hi-tech Science Park, Weihai, Shandong Province, the People's Republic of China (the "PRC") on Wednesday, 14 October 2020 are set out on pages 10 to 12 of this circular.

Whether or not you are able to attend the respective meetings, you are strongly urged to complete and sign the enclosed forms of proxy in accordance with the instructions printed thereon. Please return it to the Company's H Share registrar, Tricor Standard Limited, Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong as soon as possible but in any event not later than 24 hours before the time appointed for the holding of the relevant meeting(s) or any adjourned meeting(s) (as the case may be). Completion and return of the form of proxy will not preclude you from attending and voting in person at the meeting(s) or any adjourned meeting(s) should you so wish.

22 September 2020

• For identification purpose only

CONTENTS
	Page
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
LETTER FROM THE BOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
PROPOSED INTERIM DIVIDEND PAYMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
CLOSURE OF REGISTER OF MEMBERS OF THE COMPANY . . . . . . . . . . . . . . . .	5
SECOND EXTRAORDINARY GENERAL MEETING . . . . . . . . . . . . . . . . . . . . . . . .	6
RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7
GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7
NOTICE OF SECOND EXTRAORDINARY GENERAL MEETING . . . . . . . . . . . . . . . .	8

- i -

DEFINITIONS

"Board"

"Company"

"Directors"

"H Shares"

"Hong Kong"

"Latest Practicable Date"

"Listing Rules"

"PRC"

"PRC Company Law" "RMB"

"SAFE"

"Shareholder(s)"

"the Second Extraordinary General Meeting"

"Stock Exchange"

the board of Directors

Shandong Weigao Group Medical Polymer Company

Limited*（山東威高集團醫用高分子製品股份有限公司）

the directors of the Company

the shares of the Company, with a nominal value of RMB0.10 each, which are held and traded in Hong Kong dollars

the Hong Kong Special Administrative Region of the PRC

16 September 2020, being the latest practicable date for ascertaining certain information contained in this circular prior to its publication

the Rules Governing the Listing of Securities on the Stock Exchange

the People's Republic of China, excluding, for the purpose of this circular only, Hong Kong, the Macau Special Administrative Region of the PRC and Taiwan

the Company Law of the PRC

Renminbi, the lawful currency of the PRC

the State Administration of Foreign Exchange of the PRC

the shareholder(s) of the Company

the second extraordinary general meeting of the Company to be held at 2/F, 18 Xingshan Road, Weihai Torch Hi-tech Science Park, Weihai, Shandong Province, the PRC at 10:00 a.m. on Wednesday, 14 October 2020

The Stock Exchange of Hong Kong Limited

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LETTER FROM THE BOARD

山 東 威 高 集 團 醫 用 高 分 子 製 品 股 份 有 限 公 司 Shandong Weigao Group Medical Polymer Company Limited *

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

(Stock Code: 1066)

Executive Directors:	Principal place of business in the PRC:
Mr. Zhang Hua Wei (Chairman)	18 Xingshan Road
Mr. Long Jing (Chief Executive officer)	Weihai Torch Hi-tech Science Park
Mr. Wang Yi	Weihai
Mr. Gong Jian Bo	Shandong Province
	the PRC
Non-executive Directors:
Mrs. Zhou Shu Hua	Principal place of business
	in Hong Kong:
Independent non-executive Directors:	801 Chinachem Century Tower
Mr. Lo Wai Hung	178 Gloucester Road
Mrs. Fu Ming Zhong	Wanchai
Mrs. Wang Jin Xia	Hong Kong
	22 September 2020
To the Shareholders
Dear Sir or Madam,
PROPOSED INTERIM DIVIDEND
	AND
NOTICE OF THE SECOND EXTRAORDINARY GENERAL MEETING
INTRODUCTION

The purpose of this circular is to provide you with information regarding the resolution to be proposed at the Second Extraordinary General Meeting, to approve, proposed interim dividend for the six months ended 30 June 2020.

• For identification purpose only

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LETTER FROM THE BOARD

PROPOSED INTERIM DIVIDEND PAYMENT

The Board proposed the distribution of an interim dividend for the six months ended 30 June 2020 of RMB0.062 (same period of 2019: RMB0.059) (before considering any tax effect) per share was approximately RMB277,535,000 (same period of 2019: RMB264,105,000), which will be subject to the approval of shareholders of the Company at the Second Extraordinary General Meeting. Dividend payable to shareholders participating in the Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and H share full circulation pilot project will be paid in Renminbi, whereas dividend payable to holders of the H shares will be declared in Renminbi and paid in Hong Kong dollars, the exchange rate of which will be calculated based on the average exchange rate published by The People's Bank of China during the week prior to the Second Extraordinary General Meeting. Subject to the approval of the Second Extraordinary General Meeting, the 2020 interim dividend will be paid on Friday, 20 November 2020.

In accordance with the Enterprise Income Tax Law of the People's Republic of China（《中 華人民共和國企業所得稅法》）and its implementation rules effective on 1 January 2008, where a PRC domestic enterprise distributes dividends for financial periods beginning from 1 January 2008 to non-residententerprise shareholders, it is required to withhold 10% enterprise income tax for such non-residententerprise shareholders. Therefore, as a PRC domestic enterprise, the Company will, after withholding 10% of the interim dividend as enterprise income tax, distribute the interim dividend to non-residententerprise shareholders, i.e. any shareholders who hold the Company's shares in the name of non-individualshareholders, including but not limited to HKSCC Nominees Limited, other nominees, trustees, or holders of H Shares registered in the name of other organizations and groups. Pursuant to the PRC Individual Income Tax Law（《中華人民共 和國個人所得稅法》）, the Implementation Regulations of the PRC Individual Income Tax Law （《中華人民共和國個人所得稅法實施條例》）, the Announcement of the State Administration of Taxation on Promulgation of the Administrative Measures on Entitlement for Non-ResidentTaxpayers to Tax Convention Treatment (Announcement No. 60 [2015] of the State Administration of Taxation)（《國家稅務總局關於印發〈非居民納稅人享受稅收協定待遇管理辦法〉的公 告》（國家稅務總局公告2015年第60號）, other relevant laws and regulations and other regulatory documents, the Company shall, as a withholding agent, withhold and pay individual income tax for the individual holders of H shares in respect of the dividend to be distributed to them. However, the individual holders of H shares may be entitled to certain tax preferential treatments pursuant to the tax treaties between the PRC and the countries (regions) in which the individual holders of H shares are domiciled and the tax arrangements between Mainland China, Hong Kong or Macau. For individual holders of H shares in general, the Company will withhold and pay individual income tax at the rate of 10% on behalf of the individual holders of H shares in the distribution of the dividend. However, the tax rates applicable to individual holders of H Shares overseas may vary depending on the tax treaties between the PRC and the countries (regions) in which the individual holders of H shares are domiciled, and the Company will withhold and pay individual income tax on behalf of the individual holders of H shares in the distribution of the dividend accordingly.

- 3 -

LETTER FROM THE BOARD

Pursuant to the Notice on the Tax Policies Related to the Pilot Program of the Shanghai- Hong Kong Stock Connect (Caishui [2014] No.81《關於滬港股票市場交易互聯互通機制試 點有關稅收政策的通知（財稅[2014]81號）》and the Notice on the Tax Policies Related to the Pilot Program of the Shenzhen-Hong Kong Stock Connect (Caishui [2016] No.127 《關於 深港股票市場交易互聯互通機制試點有關稅收政策的通知（財稅[2016]127號, for dividend received by domestic individual investors from investing in H shares listed on the Hong Kong Stock Exchange through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, the company of such H shares shall withhold and pay individual income tax at the rate of 20% on behalf of the investors.

Pursuant to the PRC Individual Income Tax Law（《中華人民共和國個人所得稅法》） and the Implementation Regulations, for individual holders of shares participating in the H share full circulation pilot project, it shall withhold and pay individual income tax at the rate of 20% on behalf of the investors.

The Company will identify the country of domicile of the individual holders of H shares according to their registered address on the H share register of members of the Company (the "Registered Address"). If the domicile of an individual holders of H shares is not the same as the Registered Address or if the individual holders of H shares would like to apply for a refund of the additional amount of tax finally withheld and paid, the individual holders of H shares shall notify and provide relevant supporting documents to the Company. Upon examination of the supporting documents by the relevant tax authorities, the Company will follow the guidance given by the tax authorities to implement the relevant tax withholding provisions and arrangements. Individual holders of H shares may either personally or appoint a representative to attend to the procedures in accordance with the requirements under the Tax Treaties Notice if they do not provide the relevant supporting documents to the Company. The Company assumes no responsibility and disclaims all liabilities whatsoever in relation to the tax status or tax treatment of the individual holders of H shares and for any claims arising from or in connection with any delay in or inaccurate determination of the tax status or tax treatment of the individual holders of H shares or any disputes over the withholding mechanism or arrangements. Shareholders are recommended to consult their tax advisors regarding the PRC, Hong Kong and other tax implications arising from or in connection with their holding and disposal of the H shares of the Company.

- 4 -

LETTER FROM THE BOARD

CLOSURES OF REGISTER OF MEMBERS OF THE COMPANY

Second Extraordinary General Meeting

In order to determine the shareholders who are entitled to attend and vote at the Second Extraordinary General Meeting, the register of members of the Company for H Shares will be closed from Friday, 9 October 2020, to Wednesday, 14 October 2020 (both days inclusive), during which period no transfer of H Shares will be effected. In order to qualify for attending and voting in the Second Extraordinary General Meeting, Shareholders should ensure that all transfer documents, accompanied by the relevant share certificates, are lodged with the Company's H Share registrar, Tricor Standard Limited, at Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong for registration no later than 4:30 p.m. on Thursday, 8 October 2020.

In order to qualify for attending and voting in the Second Extraordinary General Meeting:-

Latest time to lodge in transfer instrument accompanied

by the share certificates for H Shares . . . . . . . . . . . . . . . . . . . . . . . . . 4:30 p.m., Thursday, 8 October 2020

Closure of register of members of

the Company for attending and voting

in the Second Extraordinary General Meeting . . . . . . . . . . . . . . Friday, 9 October 2020 to Wednesday, 14 October 2020 (both days inclusive)

Date of the Second Extraordinary General Meeting . . . . . . . . . . Wednesday, 14 October 2020

Interim dividend payment

In order to determine entitlement to the interim dividend payment, the register of members of the Company for H Shares will be closed from Tuesday, 20 October 2020 to Thursday, 22 October 2020 (both days inclusive), during which period no transfer of H Shares will be effected. In order to qualify for entitlement of the interim dividend, holders of H Shares should ensure that all transfer documents, accompanied by the relevant share certificates, are lodged with the Company's H Share registrar, Tricor Standard Limited, at Level 54, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong for registration no later than 4:30 p.m. on Monday, 19 October 2020.

- 5 -

LETTER FROM THE BOARD

In order to qualify to entitle the interim dividend for the six months ended 30 June 2020:-

Latest time to lodge in transfer instrument accompanied

by the share certificates for H Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . .4:30 p.m., Friday, 19 October 2020

Closure of register of members of the Company for entitlement of the interim dividend for the

six months ended 30 June 2020 . . . . . . . . . . . . . . . . . . . . . . . Tuesday, 20 October 2020 to Thursday, 22 October 2020 (both day inclusive)

Record date for the entitlement of

the interim dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thursday, 22 October 2020

Expected despatch date of the interim dividend . . . . . . . . . . . . . . .Friday, 20 November 2020

The interim dividend will be despatched at the risk of those entitled thereto to their respective registered addresses on or before Friday, 20 November 2020. The applicable exchange rate for converting RMB into Hong Kong dollar for the purpose of the interim dividend payment will be based on the average middle exchange rate of Renminbi as quoted by the People's Bank of China for the calendar week proceeding 14 October 2020, the date on which the interim dividend to be declared.

SECOND EXTRAORDINARY GENERAL MEETING

The Second Extraordinary General Meeting will be held at 10:00 a.m. on Wednesday, 14 October 2020 at 2/F, 18 Xingshan Road, Weihai Torch Hi-tech Science Park, Weihai, Shandong, the PRC to approve the payment of the interim dividend.

The notice of the Second Extraordinary General Meeting is set out on pages 8 to 10 of this circular.

Proxy form for use at the Second Extraordinary General Meetings is enclosed with this circular and are also published on the websites of the Stock Exchange (http://www.hkexnews.hk) and the Company (http://www.weigaogroup.com). Whether or not you are able to attend the meetings in person, you are requested to complete and return the proxy form in accordance with the instructions printed thereon and return it to the Company's H Share registrar, Tricor Standard Limited, at Level 54, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong, not less than 24 hours before the time fixed for holding the Second Extraordinary General Meeting or any adjournment thereof (as the case may be).

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LETTER FROM THE BOARD

Completion and delivery of the proxy form will not preclude you from attending and voting in person at the meetings or any adjournment thereof (as the case may be) if you so wish.

All votes casted at the Second Special General Meeting will be taken by poll.

RECOMMENDATIONS

The Directors consider that the proposed resolutions mentioned above are in the interests of the Company and the Shareholders as a whole and are fair and reasonable. Accordingly, the Directors recommend the Shareholders to vote in favour of the relevant resolutions to be proposed at the Second Extraordinary General Meeting.

GENERAL INFORMATION

This circular, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this circular is accurate and complete in all material aspects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this circular misleading.

By Order of the Board

Shandong Weigao Group Medical Polymer Company Limited

Zhang Hua Wei

Chairman

- 7 -

NOTICE OF SECOND EXTRAORDINARY GENERAL MEETING

山 東 威 高 集 團 醫 用 高 分 子 製 品 股 份 有 限 公 司

Shandong Weigao Group Medical Polymer Company Limited *

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

(Stock Code: 1066)

NOTICE OF THE SECOND EXTRAORDINARY GENERAL MEETING

NOTICE IS HEREBY GIVEN that the second extraordinary general meeting (the "Second Extraordinary General Meeting") of the shareholders of Shandong Weigao Group Medical Polymer Company Limited*（山東威高集團醫用高分子製品股份有限公司）(the "Company") will be held at 2/F, 18 Xingshan Road, Weihai Torch Hi-tech Science Park, Weihai, Shandong, the PRC at 10:00 a.m. on Wednesday, 14 October 2020 for the purpose of considering and, if thought fit, passing the following resolutions of the Company:

ORDINARY RESOLUTION

1. To consider and approve the distribution of an interim dividend of RMB0.062 per share (inclusive of tax) for the six months ended 30 June 2020.

Yours faithfully,

By order of the Board

Shandong Weigao Group Medical Polymer Company Limited*

Zhang Hua Wei

Chairman

Weihai, Shandong, the PRC

22 September 2020

• For identification purpose only

- 8 -

NOTICE OF SECOND EXTRAORDINARY GENERAL MEETING

Registered Office:

18 Xingshan Road

Weihai Torch Hi-tech Science Park

Weihai

Shandong Province

the PRC

Principal Place of Business in Hong Kong:

801 Chinachem Century Tower

178 Gloucester Road

Wanchai

Hong Kong

Notes:

1. A Shareholder who has the right to attend and vote at the Second Extraordinary General Meeting is entitled to appoint one proxy (or more) in writing to attend the Second Extraordinary General Meeting and vote on his behalf in accordance with the Company's Articles of Association. The proxy need not be a shareholder of the Company. Enclosed herewith is a form of proxy for use in the Second Extraordinary General Meeting. Any Shareholder who wishes to appoint a proxy should Second review the form of proxy for use in the Second Extraordinary General Meeting. For any Shareholder who has appointed more than one proxies, such proxies shall only vote on poll. In the case of joint registered holders, the proxy form may be signed by any joint registered holder. In the case that more than one of such joint registered holders are present at any meeting personally or by proxy, then one such joint registered holders so present whose name stands second on the register of members of the Company in respect of such share shall alone be entitled to vote in respect thereof.
2. All Shareholders shall appoint its proxy in writing. To be valid, a form of proxy together with a power of attorney or other authority, if any, under which it is signed or certified by a notary or an official copy of that power of attorney or authority, must be delivered at the Company's H Shares registrar, Tricor Standard Limited, at Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong not less than 24 hours before the time appointed for holding the Second Extraordinary General Meeting or 24 hours before the time designated for voting.
3. Shareholders and their proxies attending the Second Extraordinary General Meeting shall produce their proof of identification.
4. For the purpose of determining the identity of shareholders who are entitled to attend and vote at the Second Extraordinary General Meeting, the register of members will be closed from Friday, 9 October 2020 to Wednesday, 14 October 2020, both days inclusive, during which period no transfer of shares will be effected. In order to qualify for attending at the Second Extraordinary General Meeting, all transfers accompanied by the relevant share certificates must be lodged with the Company's H Shares registrar at Level 54, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong not later than 4:30 p.m. on Thursday, 8 October 2020.

- 9 -

NOTICE OF SECOND EXTRAORDINARY GENERAL MEETING

1. The Second Extraordinary General Meeting is expected not to exceed half a day, and all shareholders and proxies shall be responsible for their own traveling and accommodation expenses.
2. Pursuant to Article 80 of the Company's Articles of Association all votes of the Shareholders at the general meetings must be taken by poll.
3. Any enquiries about this notice and the Second Extraordinary General Meeting shall be sent for the attention to Ms. Yan Yucai at 8/F, 18 Xingshan Road, Weihai Torch Hi-tech Science Park, Weihai, Shandong Province, the PRC (Tel.
4. 1. 631 5660715) or Ms. Phillis Wong at 801, Chinachem Century Tower, 178 Gloucester Road, Wanchai, Hong Kong (Tel: [phone]).

As at the date of this notice, the Board comprises:

Mr. Zhang Hua Wei (Executive Director)

Mr. Long Jing (Executive Director)

Mr. Wang Yi (Executive Director)

Mr. Gong Jian Bo (Executive Director)

Mrs. Zhou Shu Hua (Non-executive Director)

Mr. Lo Wai Hung (Independent non-executive Director)

Mrs. Fu Ming Zhong (Independent non-executive Director)

Mrs. Wang Jin Xia (Independent non-executive Director )

- 10 -