Wai Yuen Tong Medicine : SUPPLEMENTAL ANNOUNCEMENT IN RELATION TO POSSIBLE MAJOR AND CONNECTED TRANSACTION IN RELATION TO THE EFFECTIVE DISPOSAL OF THE COMPANY'S ENTIRE SHAREHOLDING IN EASY ONE FINANCIAL GROUP LIMITED

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WAI YUEN TONG MEDICINE HOLDINGS LIMITED

• 位 元 堂 藥 業 控 股 有 限 公 司 * )

(Incorporated in Bermuda with limited liability)

(Stock Code: 897)

SUPPLEMENTAL ANNOUNCEMENT

Reference is made to the circular issued by Wai Yuen Tong Medicine Holdings Limited (the "Company") dated 24 July 2020 (the "Circular") in respect of, among other things, the possible major and connected transaction in relation to the effective disposal of the Company's entire shareholding in Easy One Financial Group Limited enclosing a notice convening the SGM. Unless otherwise defined, capitalised terms used herein shall have the same meanings as those defined in the Circular.

The Company wishes to provide further information to those provided in the Circular. In the Letter from the Independent Financial Adviser as contained in the Circular, the Independent Financial Adviser based its opinion as to the fairness and reasonableness of the Cancellation Consideration on, among other things, price-to-earning ratio for comparison against Comparable Companies (as such term is defined in the Letter from Independent Financial Adviser). In this relation, the Company wishes to inform Independent Shareholders that the Independent Financial Adviser has confirmed that should price-to-book ratio be adopted to perform analysis against the Comparable Companies (as such term is defined in the Letter from the Independent Financial Adviser), the Independent Financial Adviser's recommendation will remain the same. On this basis, the Independent Board Committee maintains its recommendation to Independent Shareholders to vote in favour of the resolution approving the WYT Disposal at the SGM.

By Order of the Board

WAI YUEN TONG MEDICINE HOLDINGS LIMITED

(位元堂藥業控股有限公司*) Chan Chun Hong, Thomas Director

Hong Kong, 12 August 2020

As at the date of this announcement, the executive Directors are Mr. Tang Ching Ho, Mr. Chan Chun Hong, Thomas, Ms. Tang Mui Fun and Ms. Tang Wai Man and the independent non-executive Directors are Mr. Leung Wai Ho, Mr. Siu Man Ho, Simon, Mr. Cho Wing Mou and Mr. Li Ka Fai, David.

*  For identification purpose only