China Traditional Chinese Med Hldg CoLtd : VOLUNTARY ANNOUNCEMENT RESEARCH RESULTS OF THE CLINICAL USE OF MOISTURING & ANTI-ITCHING CAPSULES FOR TREATMENT OF CHRONIC ECZEMA

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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

RESEARCH RESULTS OF THE CLINICAL USE OF MOISTURING & ANTI-ITCHING

CAPSULES FOR TREATMENT OF CHRONIC ECZEMA

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

In order to comply with the requirements on the adoption of clinical pathways ( ᑗґ༩ࢰ ) in public hospitals promoted by the regulatory authorities, the Group has been conducting large evidence-based clinical researches to enhance the influence of the Company in the academic world.

The board of directors of the Company is pleased to announce that the randomised control trials ("RCT") conducted on the clinical use of Moisturising & Anti-Itching Capsule* ( ᆗᐇ˟ᘢᇭᚾ ) for treatment of chronic eczema ( ࿔׌᐀ऽ ) have produced the following results:

• 1) the efficacy rate and the success rate based on Investigator's Global Assessment for a 4-week treatment period were both significantly higher than that of the control group;

• 2) the clinical use of the drug significantly reduced the area of infection, severity of the disease and skin itchiness of patients; and

• 3) the clinical use of the drug did not result in any serious adverse reaction.

Moisturising & Anti-Itching Capsule has been well received by the market since its launch given its remarkable efficacy in treating chronic eczema. This is the first RCT clinical evidence-based study of oral traditional Chinese medicine in dermatology and demonstrates the efficacy and safety of Moisturising & Anti-Itching Capsule for the treatment of chronic eczema with the support of detailed data with the highest level of evidence. For details of the research results, please refer to the press release made by the Company on its website on 12 December 2017.

The Group will continue to focus on academic researches to improve the brand recognition of its products and support sales volume growth.

By order of the Board

China Traditional Chinese Medicine Holdings Co. Limited

WU Xian

Chairman

Hong Kong, 12 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