Sihuan Pharmaceutical : VOLUNTARY ANNOUNCEMENT - CAPITAL INJECTION BY NEW INVESTORS INTO BEIJING RUIYE DRUGS MANUFACTURE CO., LTD. (AN ASSOCIATE OF SIHUAN PHARMACEUTICAL) TO ACCELERATE CAPACITY EXPANSION

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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Sihuan Pharmaceutical Holdings Group Ltd. 四 環 醫 藥 控 股 集 團 有 限 公 司 (incorporated in Bermuda with limited liability) (Stock code: 0460) VOLUNTARY ANNOUNCEMENT CAPITAL INJECTION BY NEW INVESTORS INTO BEIJING RUIYE DRUGS MANUFACTURE CO., LTD. (AN ASSOCIATE OF SIHUAN PHARMACEUTICAL) TO ACCELERATE CAPACITY EXPANSION The board of directors (the '' Board '' ) of Sihuan Pharmaceutical Holdings Group Ltd. (the '' Company '' or '' Sihuan Pharmaceutical '' , together with its subsidiaries, the '' Group '' ) is pleased to announce that Beijing Ruiye Drugs Manufacture Co., Ltd. ( '' Beijing Ruiye '' ), an associate of the Group, has introduced Guangdong Guanrun Equity Investment Partnership (Limited Partnership) ( 廣 東 冠潤 股 權投 資合夥企 業 ( 有 限 合夥 )) and Nanjing Huiji Equity Investment Partnership (Limited Partnership) ( 南 靖惠 及股 權投 資合夥企 業 ( 有 限 合夥 )) (the '' Two Investors '' ) as investors for capital injection (the '' Capital Injection '' ). According to the agreement, the Two Investors invested in Beijing Ruiye by way of cash injection. After the Capital Injection, the overall valuation of Beijing Ruiye is RMB2.9 billion. The Group holds 40.966% equity interest in Beijing Ruiye, while the Two Investors hold an aggregate of 6.896% equity interest in Beijing Ruiye. At present, Beijing Ruiye possesses the leading technology of non-PVCsolid-liquid double chamber infusion soft bag (the '' Formulation '' ). Beijing Ruiye has obtained production approvals for multiple varieties and specifications of the Formulation (including ceftazidime, cefuroxime and cefodizime) and is expected to obtain other production approvals covering the mainstream antibiotics and other first-line drugs in China. - 1 - The proceeds from the Capital Injection are designated for meeting the normal operation needs of the Company to prepare for the subsequent expansion of production capacity and reduction of production costs, and to provide further support for subsequent research and development investment and business development, thereby actively promoting the project process. The capital increase also reflects the investors ' recognition of the double-chamber business of Beijing Ruiye as well as expectation for the promising market of the three kinds of antibiotic products (i.e. ceftazidime, cefuroxime and cefodizime) whose sales reach RMB10.111 billion per year based on the data from IQVIA CHPA. In the future, the national sales of Beijing Ruiye ' s products will be fully entrusted to Sihuan Pharmaceutical Group. At the same time, the investor will give full play to its advantages in market access and facilitate quick market launch of the products. The Group believes that Beijing Ruiye will gradually become a leading enterprise in the therapeutic solid-liquid double chamber infusion industry in China to meet the medication needs of the patients in general and create considerable returns for the Group. This announcement is being made by the Group on a voluntary basis to update the investing public on the Group ' s latest business development, and does not constitute, and is not intended to be, an advertisement regarding the use of any medicine, surgical appliance, treatment or orally consumed product. By Order of the Board Sihuan Pharmaceutical Holdings Group Ltd. Dr. Che Fengsheng Chairman and Executive Director Hong Kong, 19 August 2020 As at the date of this announcement, the executive directors of the Company are Dr. Che Fengsheng (Chairman), Dr. Guo Weicheng (Deputy Chairman and Chief Executive Officer), Dr. Zhang Jionglong, Mr. Choi Yiau Chong and Ms. Chen Yanling; the non-executive director of the Company is Mr. Kim Jin Ha; and the independent non-executive directors of the Company are Mr. Patrick Sun, Mr. Tsang Wah Kwong and Dr. Zhu Xun. - 2 -

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