Tong Ren Tang Technologies : INSIDE INFORMATION UPDATE ANNOUNCEMENT ON RECEIPT OF ENTRUSTED LOAN FROM THE ULTIMATE CONTROLLING SHAREHOLDER

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(a joint stock company incorporated in the People's Republic of China with limited liability) (Stock Code: 1666)

INSIDE INFORMATION

UPDATE ANNOUNCEMENT ON RECEIPT OF ENTRUSTED LOAN

FROM THE ULTIMATE CONTROLLING SHAREHOLDER

This announcement is made by Tong Ren Tang Technologies Co. Ltd. (the "Company", together with its subsidiaries, the "Group") pursuant to Part XIVA of the Securities and Future Ordinance (Chapter 571 of the Law of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Hong Kong Listing Rules").

Reference is made to the announcement of the Company dated 26 October 2018 (the "Announcement") in relation to the renewal of the entrusted loan agreements (the "Original Agreements") between the Company and China Beijing Tong Ren Tang Group Co., Ltd. ("Tong Ren Tang Holdings"). Terms used herein shall have the same meanings as those defined in the Announcement unless the context requires otherwise.

On 4 November 2019, the Board resolved to renew the Entrusted Loan Agreement with Tong Ren Tang Holdings after the expiry of the Original Agreements on the same terms and conditions as set out therein, pursuant to which Tong Ren Tang Holdings will provide the Entrusted Loan of RMB32 million in total to the Company on normal commercial terms, of which the lending rate shall be no higher than the benchmark lending interest rate published by the People's Bank of China prevailing over the corresponding periods with moderate decrease and the term is one year (which can be extended upon maturity). The Entrusted Loan will not be secured by the assets of the Group and will mainly be used for projects including the construction of security and quality system of medicine in production process. The Entrusted Loan will be transferred into capital injection by Tong Ren Tang Holdings into the Company when appropriate in the future and the corresponding approval procedures will be carried out.

According to Rule 14A.90 of the Hong Kong Listing Rules, as the Entrusted Loan is on normal commercial terms and free from security by the assets of the Group, it is exempt from reporting, announcement and shareholder's approval requirements. If the Entrusted Loan is contemplated to be transferred into capital injection by Tong Ren Tang Holdings into the Company, the corresponding approval procedures will be carried out and relevant requirements of the Hong Kong Listing Rules will be duly complied with.

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Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company.

By order of the Board

Tong Ren Tang Technologies Co. Ltd.

Gu Hai Ou

Chairman of the Board

Beijing, the PRC

4 November 2019

As at the date of this announcement, the Board comprises Mr. Gu Hai Ou, Mr. Huang Ning, Mr. Wu Le Jun, Ms. Wu Qian, Mr. Wang Yu Wei and Ms. Fang Jia Zhi as executive Directors, Mr. Ting Leung Huel, Stephen, Ms. Chan Ching Har, Eliza and Mr. Zhan Yuan Jing as independent non-executive Directors.

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