YiChang HEC ChangJiang Pharmaceutical : VOLUNTARY ANNOUNCEMENT LETTER OF INTENT IN RESPECT OF NATIONAL COLLABORATIVE INNOVATION INDUSTRIALIZATION PLATFORM FOR DRUGS OF EMERGENCY PREVENTION AND CONTROL CUM NATIONAL ANTIVIRAL DRUG CENTRE

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YiChang HEC ChangJiang Pharmaceutical Co., Ltd.

宜 昌 東 陽 光 長 江 藥 業 股 份 有 限 公 司

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

(Stock Code: 01558)

VOLUNTARY ANNOUNCEMENT

LETTER OF INTENT

IN RESPECT OF NATIONAL COLLABORATIVE INNOVATION

INDUSTRIALIZATION PLATFORM

FOR DRUGS OF EMERGENCY PREVENTION AND CONTROL

CUM NATIONAL ANTIVIRAL DRUG CENTRE

This is a voluntary announcement made by YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (the ''Company'', together with its subsidiaries, the ''Group'').

The board of directors (the ''Board'') of the Company announced that, on 21 August 2020, a letter of intent (the ''Letter of Intent'') was entered into among the Company, Wuhan Institute of Virology, Chinese Academy of Sciences* (中國科學院武漢病毒研究所), National Engineering Technology Research Center for Drugs of Emergency Prevention and Control* (國家應急防控藥物工程技術研究中心) and Sunshine Lake Pharma Co., Ltd.*(廣 東東陽光藥業有限公司) (''Sunshine Lake Pharma''), pursuant to which, these parties will jointly establish a national military-civilian integrated collaborative industrialization platform for drugs of emergency prevention and control cum national antiviral drug centre. The objective of entering into the Letter of Intent is to provide the nation with various drug types, capabilities and technical reserve systems for drugs of emergency prevention and control, especially the establishment of the national collaborative innovation industrialization system for drugs of emergency prevention and control capable of providing rapid feedback. The parties will work together and fully exercise their respective expertise to establish a national innovation chain and industrial chain for drugs of emergency prevention and control, in order to complement each other and assist in protection of national public health and strategic security.

Wuhan Institute of Virology, Chinese Academy of Sciences* (中國科學院武漢病毒研究所) is a comprehensive research institution specializing in basic virology research and related technological innovation. It is the supporting unit of the large-scale biosafety scientific research centre jointly established by the Chinese Academy of Sciences* (中國科學院), National Health Commission* (國家衛生健康委員會) and the People's Government of Hubei Province, and has built a high-level biosafety laboratory cluster platform centered on biochemical laboratories with the highest biosafety level (level 4). Focusing on the strategic needs of national biosafety and population health, it strives to break through the frontier scientific issues in the research of pathogens of emerging and severe infectious diseases, and improve the national scientific on technological support capabilities for emergency response to emerging and sudden infectious diseases.

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National Engineering Technology Research Center for Drugs of Emergency Prevention and Control* (國家應急防控藥物工程技術研究中心) was established in 2010 with the approval of the Ministry of Science and Technology. Its core mission targets the national strategic security and major needs, focusing on the drug needs for medical protection and treatment under public health emergencies. By using the core technology of modern drug discovery as a platform, the emergency response capabilities for the prevention and control of new and major public health incidents would be improved and strengthened.

With new chemical drugs and global generic drugs as its core products, Sunshine Lake Pharma is a demonstration enterprise for preparations internationalization of the Ministry of Industry and Information Technology of the People's Republic of China and possesses the State Key Laboratory of Anti-infective New Drug R&D and the Postdoctoral Workstation of Ministry of Human Resources and Social Security. As at the date of this announcement, Guangdong HEC Technology Holding Co., Ltd.* (廣東東陽光科技控股股份有限公司) (the ''Parent Company'') directly holds approximately 51.55% equity interest in the Company. Shenzhen HEC Industrial Development Co., Ltd.* (深圳市東陽光實業發展有限公司) (''Shenzhen HEC Industrial'') directly and indirectly holds approximately 53.32% equity interest in the Parent Company, of which approximately 27.97% of the equity interest is directly held, and Sunshine Lake Pharma is an indirect non-wholly-owned subsidiary of Shenzhen HEC Industrial.

The Letter of Intent is only a document of intention, which serves as a guidance document for the future long-term cooperation between the parties and as a basis for the relevant contracts to be entered into by the parties.

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

On behalf of the Board

YiChang HEC ChangJiang Pharmaceutical Co., Ltd.

TANG Xinfa

Chairman

Hubei, the PRC

24 August 2020

As of the date of this announcement, the Board consists of Mr. JIANG Juncai, Mr. WANG Danjin, Mr. CHEN Yangui and Mr. LI Shuang as executive directors; Mr. TANG Xinfa and Mr. Eddy HUANG as non-executive directors; and Mr. TANG Jianxin, Mr. ZHAO Dayao and Ms. XIANG Ling as independent non-executive directors.

• For identification purposes only

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