The board of directors of Shandong Xinhua Pharmaceutical Company Limited announced that Mr. Zhao Bin (‘Mr. Zhao’), a non-executive director of the company, has by reason of age resigned from directorship and the membership of the Strategic Development Committee of the Board. The Resignation took effect from 29 January 2019 and thereupon Mr. Zhao has no longer held any office or position in the Group. Mr. Zhao has confirmed that he has no disagreement with the Board and he is not aware of any matters relating to the Resignation that need to be brought to the attention of the shareholders of the company.