Resignation of a supervisor and election of a new supervisor

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

(H Share Stock Code: 0874)

RESIGNATION OF A SUPERVISOR AND ELECTION OF

A NEW SUPERVISOR

On 24 September 2019, the Supervisory Committee ("Supervisory Committee") of Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (the "Company") received the written resignation tendered by Ms. Li Jinyun ("Ms. Li"), the supervisor representing the employees of the Company. Ms. Li has resigned due to her occupation transference and her resignation came into effect on 24 September 2019. Ms. Li has confirmed that she has no disagreement with the Supervisory Committee of the Company, and did not have any matters in relation to her resignation that should be brought to the attention of the shareholders of the Company. The Supervisory Committee of the Company would like to express its sincere gratitude to Ms. Li for her valuable contribution to the Company during her tenure of office.

At the enlarged meeting of the Labour Union Committee of the Company held on 24 September 2019, Mr. Cai Ruiyu ("Mr. Cai") was elected to replace Ms. Li as the supervisor representing the employees of the Company, whose term of office has commenced from the date on which the approval in enlarged meeting of the Labour Union Committee of the Company up to the date on which the term of office of the current session of the Supervisory Committee of the Company expires. The biographical information on Mr.Cai is set out below:

Mr. Cai Ruiyu, aged 52, holds a master degree in business administration. He is an accountant and financial economist. Mr. Cai started his career in July 1988 and served as the financial controller of Guangzhou Baiyunshan Chinese Medicine Factory (廣州白雲山中藥廠 ), the chief financial officer of Bozhou Branch, the manager of production scheduling office, the deputy manager of production technology department, the assistant to the general manager, member of the party committee and deputy general manager of Guangzhou Hutchison Whampoa Chinese Medicine Co., Ltd. (廣州白雲山 和記黃埔中藥有限公司), deputy director of the organization department, human resources department and united front work department of Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. Mr. Cai is now served as the director of the organization department, the director of the human resources department and the director of the united front work department of the Company. Mr. Cai has more than 30 years of work experience in financial management, production operation

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management, human resources and administrative management, and party political work and management, and has extensive experience in party building innovation, administrative management, operation management, and cadre and talent management.

According to the emoluments policy of the Company, the annual emoluments of the supervisors of the Company are proposed by Supervisory Committee and approved by the general meeting of the Company. Because Mr. Cai is served as the director of the organization department, the director of the human resources department and the director of the united front work department of the Company at the same time, his emoluments should be assessed and adjusted according to the Administrative Measures for Emoluments and Performance Appraisal of Senior Management of Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited.

INTERESTS IN THE SHARES OF THE COMPANY WITHIN THE MEANING OF PART XV OF THE SFO

Set out below are the interests of Mr. Cai in the shares of the Company as at the date of this announcement:

Save as disclosed above, none of Mr. Cai and his associates have any interest in the shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) ("SFO"). The interests of Mr. Cai in the A shares of the Company as disclosed in the above are held by the asset manager of the Employee Stock Ownership Scheme (2015) for the benefits of Mr. Cai Details of the Employee Stock Ownership Scheme (2015) were set out in the circular of the Company dated 26 February 2015 and 19 May 2015, respectively.

NO OTHER INFORMATION REQUIRED TO BE DISCLOSED

Save as disclosed in the preceding sections of this announcement, as at the date of this announcement:

1. Mr. Cai does not have any relationship with any other director, supervisor, senior management, substantial shareholder or controlling shareholder of the Company;
2. Mr. Cai does not have, and is not deemed to have, any share interests of the Company as defined in Chapter XV of SFO;
3. Mr.Cai did not hold any directorship in any other listed companies in the past three years;

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1. Mr. Cai does not have any post in the Company or any subsidiaries of the Company;
2. there is no other information relating to the appointment of Mr. Cai that shall be disclosed pursuant to Rules 13.51(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited nor any matters which need to be brought to the attention of the shareholders of the Company.

The Board of

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited

Guangzhou, the PRC, 25 September 2019

As at the date of this announcement, the Board of the Company comprises Mr. Li Chuyuan, Ms. Cheng Ning, Ms. Liu Juyan, Mr. Ni Yidong, Mr. Li Hong, Mr. Wu Changhai and Mr. Zhang Chunbo as executive directors, and Mr. Chu Xiaoping, Mr. Jiang Wenqi, Mr. Wong Hin Wing and Ms. Wang Weihong as independent non-executive directors.

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