China Traditional Chinese Med Hldg CoLtd : RE-DESIGNATION OF DIRECTORS, APPOINTMENT OF VICE-PRESIDENTS, CHANGE OF MEMBERS OF AUDIT COMMITTEE AND APPOINTMENT OF CHIEF FINANCIAL OFFICER

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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)

RE-DESIGNATION OF DIRECTORS, APPOINTMENT OF VICE-PRESIDENTS, CHANGE OF MEMBERS OF AUDIT COMMITTEE AND APPOINTMENT OF CHIEF FINANCIAL OFFICER RE-DESIGNATION OF DIRECTORS AND APPOINTMENT OF VICE-PRESIDENTS

The board (the "Board") of directors (the "Directors") of China Traditional Chinese Medicine Holdings Co. Limited (the "Company"), together with its subsidiaries, the "Group") announces that the non- executive Directors, Mr. ZHAO Dongji ("Mr. ZHAO") and Ms. HUANG He ("Ms. HUANG") have been re-designated as executive Directors with effect from 5 June 2017. Also, Mr. ZHAO and Ms. HUANG, have been appointed as vice-presidents of the Company with effect from 5 June 2017.

The biography of Mr. ZHAO and Ms. HUANG and further details related to their appointment are set out in Appendix I to this announcement.

CHANGE OF MEMBERS OF AUDIT COMMITTEE

The Board announces that Ms. HUANG will no longer be a member of the audit committee of the Company following her re-designation from a non-executive Director to an executive Director, and meanwhile, Mr. YU Tze Shan Hailson, an independent non-executive Director, has been appointed as the member of the audit committee of the Company, both with effect from 5 June 2017.

APPOINTMENT OF CHIEF FINANCIAL OFFICER

The Board announces that Mr. SITU Min ("Mr. SITU") has been appointed as chief financial officer of the Company with effect from 5 June 2017. The biography of Mr. SITU is set out in Appendix I to this announcement.

The Board wishes to extend a warm welcome to Mr. SITU on taking up the new position as the chief financial officer of the Company.

By order of the Board

China Traditional Chinese Medicine Holdings Co. Limited Wu Xian

Chairman

The PRC, 5 June 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.

APPENDIX I BIOGRAPHIES OF DIRECTORS AND CHIEF FINANCIAL OFFICER Mr. ZHAO Dongji

Mr. ZHAO, aged 49, was appointed to the Board on 5 February 2013. Mr. ZHAO obtained a bachelor's degree in engineering from Harbin Institute of Technology in 1989, and also obtained a master's degree in business administration from Harbin Institute of Technology in 2004. Mr. ZHAO has over 26 years of related working experience, including over 15 years of management experience in pharmaceutical and health products industry. Mr. ZHAO acted as the deputy head and head of Enterprise Management Department, head of Asset Management Department and Legal Department of Harbin Pharmaceutical Group Co., Ltd. from 2000 to 2011. He also acted as a director of Harbin Pharm Group Sanjing Pharmaceutical Shareholding Co., Ltd (a company listed on the Shanghai Stock Exchange) from June 2004 to February 2011. Mr. ZHAO has served as the manager of Investment Management Department of China National Traditional Chinese Medicine Corporation (formerly named as China National Corp. of Traditional & Herbal Medicine) since 2011. Mr. ZHAO is the deputy general manager of China National Traditional Chinese Medicine Corporation since November 2014.

Ms. HUANG He

Ms. HUANG He, aged 38, was appointed to the Board on 23 August 2016. Ms. HUANG graduated from Renmin University of China with a bachelor degree in International Accounting in July 2001 and a master degree in Accounting in July 2004. Ms. HUANG is an auditor and a senior human resources officer. She was the accountant of the finance department, the vice manager of the operation and audit department and the manager of the strategic planning department of Traditional & Herbal Medicine Company from July 2004 to December 2007; the manager of the audit department, the employee supervisor of the board of supervisors and the manager of the human resources department of China National Corporation of Traditional and Herbal Medicine from January 2008 to December 2013; the director of human resources and the manager of the human resources department of China National Traditional Chinese Medicine Corporation from January 2014 to January 2015. Currently, Ms. HUANG is the director of operations and the manager of the human resources department of China National Traditional Chinese Medicine Corporation.

Save as disclosed above, each of the above Directors (i) does not hold any other position within the Group; (ii) has not held directorships in any other listed companies in the past three years; (iii) has not held any other major appointment and professional qualifications; and (iv) does not have any relationship with any directors, senior management or substantial or controlling shareholders of the Company (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")). Each of Mr. ZHAO and Ms. HUANG will enter into a supplemental appointment letter (the "Supplemental Letter") with the Company in relation to his/her appointment as the executive Director and the vice-president for an initial term of two years. Pursuant to the Supplemental Letter, the aggregate remuneration for each of Mr. ZHAO and Ms. HUANG as the executive Director and the vice-president will be RMB1,200,000 per annum. Other terms of the original appointment letters in relation to their appointment as the executive Director (including their entitlements to receive discretionary bonuses, shares options or other benefits as may be decided by the Board or the remuneration committee of the Company having regard to their performance and duties, results and profitability of the Group, and the prevailing market condition) shall remain unchanged. Their remuneration was determined by the remuneration committee of the Company in accordance with the Company's remuneration policy and with reference to their duties, market rate and their time, effort, expertise and responsibilities to be exercised on the Group's affairs. As at the date of this announcement, Mr. ZHAO and Ms. HUANG do not have any other interest in the shares, underlying shares or debentures of the Company and/or its associated corporations within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). Save as disclosed above, there are no other matters concerning Mr. ZHAO and Ms. HUANG that need to be brought to the attention of the shareholders of the Company, nor is there any information relating to Mr. ZHAO and Ms. HUANG that is required to be disclosed pursuant to Rules 13.51(2)(h) to (v) of the Listing Rules.

Mr. SITU Min

Mr. SITU Min, aged 47, was appointed as the Director of Investment of the Company in October 2013 and has served as acting chief financial officer of the Company since April 2016. Mr. SITU previously served in the board of Wing Shan International Limited and Winteam Pharmaceutical Group Limited from September 2001 to February 2013. He is a fellow member of the Association of Chartered Certified Accountants and is also a member of Chinese Institute of Certified Public Accountants. Mr. SITU has extensive experience in financial management, and corporate finance and acquisitions.