Sino Biopharmaceutical : INSIDE INFORMATION - PLACING OF EXISTING SHARES BY A SHAREHOLDER

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, 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 announcement.

(Incorporated in the Cayman Islands with limited liability)

Website: www.sinobiopharm.com

(Stock code: 1177)

INSIDE INFORMATION

PLACING OF EXISTING SHARES BY A SHAREHOLDER

This announcement is made by Sino Biopharmaceutical Limited (the "Company") pursuant to Rule

13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provision under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

PLACING AGREEMENT

The board of directors (the "Board") of the Company was informed by Mr. Tse Ping ("Mr. Tse") (Chief Executive Officer, an executive director and a shareholder of the Company) that on 24 July 2020, Validated Profits Limited ("Validated Profits"), a company wholly-owned by Mr. Tse, as vendor entered into a placing agreement (the "Placing Agreement") with third parties independent from the Company acting as managers to procure placees to purchase for 300,000,000 shares of the Company (the "Placing Shares") at a placing price of HK$10.5 per Placing Share (the "Placing"). Completion of the Placing (the "Completion") is currently expected to take place on 28 July 2020.

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CHANGES IN MR. TSE'S SHAREHOLDING

As at the date of this announcement, Mr. Tse beneficially owns 1,183,790,083 shares of the Company ("Shares"), comprising 10,600,000 Shares directly held by Mr. Tse and 1,173,190,083 Shares indirectly held through Validated Profits, representing approximately 9.41% of the issued share capital of the Company. Upon Completion, assuming that all of the Placing Shares are to be placed out, and that there is no change in the issued share capital of the Company from the date of this announcement to Completion, the number of Shares beneficially owned by Mr. Tse will decrease to 883,790,083 Shares, comprising 10,600,000 Shares directly held by Mr. Tse and 873,190,083 Shares indirectly held through Validated Profits, representing approximately 7.02% of the issued share capital of the Company.

References are made to the announcements of the Company dated 10 June 2020 and 15 July 2020, respectively, and the circular of the Company dated 24 June 2020, in relation to bonus issue of Shares by the Company. Upon completion of the bonus issue of Shares by the Company, the number of Shares beneficially owned by Mr. Tse will increase to 1,475,685,124 Shares, comprising 15,900,000 Shares directly held by Mr. Tse and 1,459,785,124 Shares indirectly held through Validated Profits, representing approximately 7.82% of the then issued share capital of the Company.

The Board does not expect the Placing to have any impact on the business or operations of the Company and its subsidiaries. The composition of the Board remains unchanged and the day-to-day operation and management of the Company will reside with the current management team of the Company, which will continue to be led by Mr. Tse Ping and his family members, comprising Ms. Cheng Cheung Ling, Ms. Tse, Theresa Y Y and Mr. Tse, Eric S Y.

By order of the Board

Sino Biopharmaceutical Limited

Tse, Theresa Y Y

Chairwoman

Hong Kong, 24 July 2020

As at the date of this announcement, the Board of the Company comprises eight Executive Directors, namely Ms. Tse, Theresa Y Y, Mr. Tse Ping, Ms. Cheng Cheung Ling, Mr. Tse, Eric S Y, Mr. Tse Hsin, Mr. Wang Shanchun, Mr. Tian Zhoushan and Ms. Li Mingqin and four Independent Non-Executive Directors, namely Mr. Lu Zhengfei, Mr. Li Dakui, Ms. Lu Hong and Mr. Zhang Lu Fu.

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