China Traditional Chinese Med Hldg CoLtd : VOLUNTARY ANNOUNCEMENT AWARD OF TWO-YEAR SUPPLY CONTRACT FOR CONCENTRATED TCM GRANULES WITH HONG KONG HOSPITAL AUTHORITY

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CHINA TRADITIONAL CHINESE MEDICINE HOLDINGS CO. LIMITED ʕ਷ʕᖹછٰϞࠢʮ̡

(Incorporated in Hong Kong with limited liability)

(Stock Code: 570)

VOLUNTARY ANNOUNCEMENT AWARD OF TWO-YEAR SUPPLY CONTRACT

FOR CONCENTRATED TCM GRANULES WITH HONG KONG HOSPITAL AUTHORITY

This announcement is made by China Traditional Chinese Medicine Holdings Co. Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis.

The board of directors of the Company is pleased to announce that Ϫ௕˂ϪᖹุϞࠢʮ̡ (Jiangyin Tianjiang Pharmaceutical Co., Ltd*) ("Jiangyin Tianjiang"), a 87.3% owned subsidiary of the Company, has been awarded through tender process a supply contract of concentrated TCM granules with Hong Kong Hospital Authority ("HKHA"). The supply contract shall cover a two-year period from 1 April 2018 to 31 March 2020, during which Jiangyin Tianjiang shall supply over 400 types of concentrated TCM granules for prescriptions to 18 Chinese traditional medicinal clinics under the management of HKHA.

Concentrated TCM granules is the core business segment of the Group. There are over 600 types of products being manufactured by the Group in the People's Republic of China (the "PRC") which are marketed all over the PRC as well as in overseas markets. Being a pioneer in concentrated TCM granules market in the PRC, the Group's products have been highly recognised and widely accepted by medical practitioners and consumers due to the superior product quality and convenience to use. The award of the supply contract with HKHA will benefit the Hong Kong citizens, enhance the brand recognition of the Company in overseas market as well as accelerate the expansion of the Group's concentrated TCM granules business.

By order of the Board

China Traditional Chinese Medicine Holdings Co. Limited

WU Xian

Chairman

Hong Kong, 27 December 2017

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.

*

for identification purpose only

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