China Traditional Chinese Med Hldg CoLtd : INSIDE INFORMATION ISSUANCE OF FIRST TRANCHE OF THE MEDIUM-TERM NOTES AT THE NATIONAL ASSOCIATION OF FINANCIAL MARKET INSTITUTIONAL INVESTORS

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CHINA TRADITIONAL CHINESE MEDICINE HOLDINGS CO. LIMITED

中國中藥控股有限公司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 570) INSIDE INFORMATION ISSUANCE OF FIRST TRANCHE OF THE MEDIUM-TERM NOTES AT THE NATIONAL ASSOCIATION OF FINANCIAL MARKET INSTITUTIONAL INVESTORS

This announcement is made by China Traditional Chinese Medicine Holdings Co. Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Listing Rules and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the announcement of the Company dated 9 November 2016 in relation to the approval of registration and proposed issue of medium-term notes (the "Announcement"). Unless otherwise defined, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

The board of directors of the Company is pleased to announce that on 16 November 2016, the Company completed the issuance of the First Tranche which involves Notes in an aggregate amount of RMB2,500 million, with a maturity of three years and coupon rate of 3.4% per annum.

As disclosed in the Announcement, the proceeds from the issuance of the First Tranche is intended to be used for the repayment of debts, expansion of production facilities and as the working capital of the Group.

Further announcement(s) will be made by the Company upon subsequent issuance of the Notes as and when appropriate. Shareholders and potential investors of the Company are reminded that the issuance of the remaining approved principal amount of the Notes of RMB2,000 million may or may not materialise and are advised to exercise caution when dealing in the securities of the Company.

By order of the Board

China Traditional Chinese Medicine Holdings Co. Limited WU Xian

Chairman

Hong Kong, 16 November 2016

As at the date of this announcement, the board of directors comprises twelve directors, of which Mr. WU Xian, Mr. YANG Bin and Mr. WANG Xiaochun are executive directors; Mr. LIU Cunzhou, Mr. DONG Zenghe, Mr. ZHAO Dongji, Ms. HUANG He 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. 1