SINOPHARM : Announcement Change in Chairman of the Board

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SINOPHARM GROUP CO. LTD.*

國藥控股股份有限公司

(A joint stock limited company incorporated in the People's Republic of China with limited liability and carrying on business in Hong Kong as 國控股份有限公司 )

(Stock Code: 01099)

ANNOUNCEMENT CHANGE IN CHAIRMAN OF THE BOARD

The board of directors (the "Board") of Sinopharm Group Co. Ltd. (the "Company", together with its subsidiaries, the "Group") announces that, Mr. Wei Yulin ("Mr. Wei"), due to the fact that he has reached retirement age, has tendered his resignation on 24 March 2017 as the Chairman of the Board, the executive director of the Company (the "Director(s)") and the chairman of each of the Nomination Committee and Strategy and Investment Committee of the Board with immediate effect. Mr. Wei has confirmed that he has no disagreement with the Board and there is no other matter relating to his resignation that needs to be brought to the attention of the shareholders or creditors of the Company.

The Board wishes to express its heartfelt appreciation for Mr. Wei's remarkable contribution during his tenure of service.

The Board makes further announcement that, on 24 March 2017, Mr. Li Zhiming ("Mr. Li"), the executive Director and President of the Company, and a member of the Investment Committee of the Board, was elected as the chairman of the Board and appointed as the chairman of the Nomination Committee and the chairman of the Strategy and Investment Committee of the Board. The term of office of Mr. Li begins from the date of approval of the election at this Board meeting, and will last until the expiry of the term of the current the Board. Mr. Li will serve as the President until the appointment of the new President by the Board.

The detailed profile of Mr. Li is as follows:

Mr. Li Zhiming, aged 54, executive Director, Chairman (Legal Representative) and President, Secretary of Party Committee. Mr. Li joined the Company in May 2010 as the vice President, and has served as the President and executive Director since November 2013 and January 2014, respectively, and the Chairman and the secretary of Party Committee since March 2017. Mr. Li was the chief legal advisor of the Company from October 2012 to January 2014, and the secretary of disciplinary committee and chairman of labor union of the Company from November 2012 to October 2013. He has been the deputy secretary of the Party Committee of the Company since November 2012. He has more than 35 years of working experience, over 31 years of which is management experience in the

pharmaceutical and healthcare products industry. Mr. Li graduated from the Xinjiang Commerce College with associate degree and a major in finance and accounting in July 1981, and graduated from the economic management discipline of the Urumqi Branch of Xi'an Military Academy with associate degree in July 1997. Mr. Li was qualified as a senior economist and a chief pharmacist. Mr. Li was the deputy director of finance department of Xinjiang New & Special Ethnic Drug Store, deputy general manager and chief accountant of Xinjiang Pharmaceutical Industry and Trade Company, deputy general manager and chief accountant of Xinjiang New & Special Ethnic Drug Corporation, and deputy director of the office of the preparatory and leading group of Xinjiang Pharmaceutical Administration Bureau steering the construction of the group entity from July 1985 to July 1996. Mr. Li was general manager, chairman of the board of directors, secretary of the Party Committee of Xinjiang New & Special Ethnic Drug Corporation, and the director, general manager, vice chairman, chairman, and secretary of the Party Committee of Xinjiang Pharmaceutical Group Company (currently known as Sinopharm Group Xinjiang Medicines Co., Ltd.) from July 1996 to February 2016. Mr. Li is currently the director of Sinopharm Industrial Investment Co., Ltd., China National Accord Medicines Co., Ltd., China National Medicines Co., Ltd., Sinopharm Holding Hong Kong Co., Ltd., Sinopharm Holding Guoda Drugstores Co., Ltd., and chairman of Sinopharm Group Xinjiang Medicines Co., Ltd., Sinopharm Holding (China) Finance Leasing Co., Ltd. and Sinopharm-CICC (Shanghai) Medical & Healthcare Investment Management Co., Ltd.

By order of the Board of

Sinopharm Group Co. Ltd. Li Zhiming

Chairman

Shanghai, the PRC 24 March 2017

As at the date of this announcement, the executive directors of the Company is Mr. Li Zhiming; the non-executive directors of the Company are Mr. Chen Qiyu, Mr. She Lulin, Mr. Wang Qunbin, Mr. Ma Ping, Mr. Deng Jindong, Mr. Li Dongjiu, Mr. Lian Wanyong and Mr. Wu Yijian; and the independent non-executive directors of the Company are Ms. Li Ling, Mr. Yu Tze Shan Hailson, Mr. Tan Wee Seng, Mr. Liu Zhengdong and Mr. Zhuo Fumin.

* The Company is registered as a non-Hong Kong company under the Hong Kong Companies Ordinance under its Chinese name and the English name "Sinopharm Group Co. Ltd."