Guangzhou Baiyunshan Pharmaceutical : PROPOSED CHANGE OF AUDITORS

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(a joint stock company with limited liability established in the People's Republic of China)

(H Share Stock Code: 0874)

PROPOSED CHANGE OF AUDITORS

This announcement is made by the board of directors (the "Board") of Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. (the "Company") pursuant to Rules 13.51(4) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The Board announces that due to the needs of business development and the audit of the Company, in accordance with the requirements for internal control and process of the Company, the Company recently conducted the selection of the financial auditors of the Company for year 2021, and the auditors of the Company for internal control for year 2021. According to the result of selection, with the recommendation from the Audit Committee, the Board resolved to propose appointment of the BDO China Shu Lun Pan Certified Public Accountants LLP* (立信會計師事務所 (特殊普通合夥)) as both the financial auditors of the Company for year 2021 and internal control auditors of the Company for year 2021 subject to the approval of the Shareholders at the annual general meeting. After full communication with WUYIGE Certified Public Accountants LLP ("WUYIGE"), the Company will no longer retain WUYIGE as the 2021 financial auditors and internal control auditors of the Company from the date of the annual general meeting of the Company.

WUYIGE has confirmed in writing that there are no divergences or disagreements with the Company or matters in relation to the change of auditors that need to be brought to the attention of the shareholders of the Company (the "Shareholders"). The Board is not aware of any matters in relation to the proposed change of auditors that needs to be brought to the attention of the Shareholders. The Board and the Audit Committee have also confirmed that there are no disagreements or outstanding matters between the Company and WUYIGE.

A circular containing, among other things, further details of the proposed appointment of the new 2021 auditors of the Company, together with the notice of the general meeting, will be dispatched to the Shareholders as soon as practicable.

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The Board would like to express its sincere gratitude to WUYIGE for the professional and quality services rendered to the Company during their service period.

The Board of

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited

Guangzhou, the PRC, 13 April 2021

As at the date of this announcement, the Board comprises Mr. Li Chuyuan, Mr. Yang Jun, Ms. Cheng Ning, Ms. Liu Juyan, Mr. Li Hong, Mr. Wu Changhai and Mr. Zhang Chunbo as executive Directors, and Mr. Wong Hin Wing, Ms. Wang Weihong, Mr. Chen Yajin and Mr. Huang Min as independent non-executive Directors.

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