China Traditional Chinese Med Hldg CoLtd : CLARIFICATION ANNOUNCEMENT IN RESPECT OF THE NOTICE OF EXTRAORDINARY GENERAL MEETING DATED 24 NOVEMBER 2017

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CHINA TRADITIONAL CHINESE MEDICINE HOLDINGS CO. LIMITED ʕ਷ʕᖹછٰϞࠢʮ̡

(Incorporated in Hong Kong with limited liability)

(Stock Code: 570)

CLARIFICATION ANNOUNCEMENT IN RESPECT OF THE NOTICE OF EXTRAORDINARY GENERAL MEETING

DATED 24 NOVEMBER 2017

Reference is made to the notice of extraordinary general meeting of China Traditional Chinese Medicine Holdings Co. Limited (the "Company") dated 24 November 2017 (the "Notice of EGM") in relation to the acquisition of the entire registered capital of certain pharmaceutical companies.

The Company noted a typographical error in the Notice of EGM and would like to make the following clarification:

Ordinary resolution 4(a) should read as follows with the change underlined:

"the agreement dated 20 October 2017 (the "Jiangyou Agreement") entered into between the Purchaser and the Vendor, pursuant to which the Purchaser conditionally agreed to acquire, and the Vendor conditionally agreed to sell, the entire registered capital of ̬ʇϪذʕᜠڝɿ߅Ҧ೯࢝Ϟࠢ ʮ̡ (Sichuan Jiangyou Zhongba Fuzi Technology Development Co., Limited*), for a consideration of RMB81.7 million on the terms and conditions of the Jiangyou Agreement, and the transactions contemplated thereunder be and are hereby approved, ratified and confirmed; and"

Save for the above clarification, there is no change to the content and information in the Notice of EGM, and the Notice of EGM remain in full force and effect.

By order of the Board

China Traditional Chinese Medicine Holdings Co. Limited

WU Xian

Chairman

Hong Kong, 14 December 2017 1

As at the date of this announcement, the board of directors comprises eleven directors, of which Mr. WU Xian, Mr. WANG Xiaochun, Mr. ZHAO Dongji and Ms. HUANG He are executive directors; Mr. LIU Cunzhou, Mr. DONG Zenghe, and Ms. TANG Hua are non-executive directors; and Mr. ZHOU Bajun,

Mr. XIE Rong, Mr. YU Tze Shan Hailson and Mr. LO Wing Yat are independent non-executive directors.

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