New Ray Medicine International : UPDATE ON RECENT DEVELOPMENT OF SUSPENSION AND CHANGE OF CHIEF EXECUTIVE OFFICER

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.

New Ray Medicine International Holding Limited

新銳醫藥國際控股有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 6108)

UPDATE ON RECENT DEVELOPMENT OF SUSPENSION AND

CHANGE OF CHIEF EXECUTIVE OFFICER

This periodic announcement is made by New Ray Medicine International Holding Limited ("Company", together with its subsidiaries, the "Group") pursuant to Rule 13.24A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Stock Exchange") ("Listing Rules"). This announcement is also made by the Company pursuant to Rule 13.51(2) of the Listing Rules.

Reference is made to the announcements of the Company dated 6 October 2017 and 12 January 2018 in relation to, among other matters, the letter dated 6 October 2017 issued by the Securities and Futures Commission of Hong Kong ("SFC") to the Company and the suspension of trading in the Shares ("Suspension"), the announcements of the Company dated 25 May 2018, 4 June 2018, 1 August 2018, 1 November 2018, 1 February 2019, 2 May 2019, 2 August 2019, 1 November 2019, 31 January 2020 and 29 April 2020 in relation to the periodic update on the Suspension, as well as the announcements of the Company dated 30 July 2018 and 8 January 2020 in relation to the amendment of the Listing Rules which has come into effect on 1 August 2018 (collectively, referred to as the "Previous Announcements"). Unless defined otherwise, capitalised terms used in this announcement shall have the same meanings as those defined in the Previous Announcements.

RECENT DEVELOPMENT OF RESUMPTION

As mentioned in the Previous Announcements, the IBC has been established for the purpose of, among other things, conducting an independent investigation into the issues relating to the Acquisitions. Grant Thornton Advisory Services Limited ("Independent Investigator") has been appointed as the independent investigator to the IBC to assist in the investigation. The Independent Investigator is in the progress of preparing its independent investigation report.

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The Company has also engaged PKF Hong Kong Limited ("PKF") as its internal control adviser to review the effectiveness of the Group's internal control systems in relation to investment procedure (including mergers and acquisitions and new projects). PKF is in the progress of preparing its report on the Group's internal control systems.

Up to the date of this announcement, the IBC's investigation into the affairs of the Acquisitions is still under progress. The Company is also seeking legal advice to address and resolve the SFC's concerns with the aim of resuming trading in the Shares. The Company intends to make further submission to the SFC in relation to its application for resumption of trading of the Shares. However, the Company is not in a position to disclose the details due to its statutory secrecy obligations under the Securities and Futures Ordinance (Chapter 571, the Laws of Hong Kong). In view of the circumstances, the Company is not in a position to formulate any practicable resumption plan with a clear timeframe at this stage. The Company will continue to seek legal advice with a view to resuming trading of the Shares as soon as practicable.

BUSINESS UPDATE

The Directors wish to point out that notwithstanding the Suspension, the Group has been carrying on its businesses as usual and continues to focus on the distribution and trading of pharmaceutical products and the provision of marketing and promotion services in the PRC.

CHANGE OF CHIEF EXECUTIVE OFFICER

The Board announces that, with effect from 31 July 2020, Mr. Huo Zhihong ("Mr. Huo") resigned as the chief executive officer of the Company ("Chief Executive Officer") due to the re-arrangement of his responsibilities within the Group. Upon his resignation, Mr. Huo will continue to hold the position of the executive Director and a member of the corporate governance committee of the Board ("Corporate Governance Committee").

Mr. Huo has confirmed that he has no disagreement with the Board and that there is no matter in connection with his resignation as the Chief Executive Officer that needs to be brought to the attention of the Shareholders and the Stock Exchange. The Board is also not aware of any such matter in relation to the resignation of Mr. Huo as the Chief Executive Officer that needs to be brought to the attention of the Shareholders.

The Board would like to express its sincere gratitude to Mr. Huo for his contribution to the Company during his tenure of office as the Chief Executive Officer.

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The Board also announces that Ms. Wang Qiuqin ("Ms. Wang"), currently an executive Director, has been appointed as the Chief Executive Officer with effect from 31 July 2020. The biographical particulars of Ms. Wang are set out below:

Ms. Wang, aged 42, is an executive Director and a member of the Corporate Governance Committee. Ms. Wang graduated from Zhejiang University (浙江大學) majoring in Chinese language and literature in 1999 and China Medical University (中國醫科大學) majoring in pharmacy in 2016 through a distance learning program. Ms. Wang has over 14 years of experience in the pharmaceutical distribution industry in the PRC. Ms. Wang was the merchandising assistant of Zhejiang Xin Rui Pharmaceutical Co., Ltd. (浙江新銳醫藥有限 公司) ("Zhejiang Xin Rui"), a wholly-owned subsidiary of the Company, from April 2006 to April 2008 and has been the merchandising manager of Zhejiang Xin Rui since May 2008. She is responsible for the overall administrative and purchasing function of the Group. She is also a director of a number of subsidiaries of the Company.

Ms. Wang and the Company have entered into a service contract dated 24 June 2020 pursuant to which Ms. Wang is appointed as the executive Director for a term of two years commencing on 27 June 2020. Ms. Wang is subject to retirement by rotation and re-election at the general meetings of the Company in accordance with the requirements of the bye-laws of the Company. Ms. Wang is entitled to a salary of HK$960,000 per annum under the service contract, which was determined by the Board with reference to her background, experience, qualifications, duties and responsibilities within the Group and the prevailing market condition and is entitled to a discretionary performance bonus under the service contract as may be determined by the Board. Ms. Wang also entered into a labour contract with Zhejiang Xin Rui for a term of three years commencing on 27 June 2018 and pursuant to which she is entitled to a monthly salary of RMB4,100 and a monthly discretionary bonus which is determined by the Board based on her performance. Ms. Wang will not receive additional remuneration as the Chief Executive Officer.

As at the date of this announcement, save as disclosed above, Ms. Wang (i) did not hold other positions with the Company or other members of the Group; (ii) did not have any relationship with any Director, senior management, substantial or controlling Shareholders (having the meaning ascribed to it in the Listing Rules) of the Company; (iii) did not hold any other major appointment and professional qualifications; (iv) did not hold any directorship in other public companies the securities of which are listed on any securities market in Hong Kong or overseas in the last three years; and (v) did not have any interests in the Shares 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 is no further information to be disclosed pursuant to the requirements of Rule 13.51(2)(h) to (v) of the Listing Rules and there are no other matters relating to the appointment of Ms. Wang as the Chief Executive Officer that need to be brought to the attention of the Shareholders.

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CONTINUED SUSPENSION OF TRADING

Trading in the Shares has been suspended with effect from 9:00 a.m. on 6 October 2017 by the Stock Exchange as directed by the SFC in accordance with Rule 8(1) Direction. As disclosed in the announcement of the Company dated 8 January 2020, the Stock Exchange has withheld exercising its right to delist the Company although trading in the Shares remained suspended on 31 January 2020. As such, trading in the Shares will continue to be suspended until further notice. The Company will endeavour to resume trading in the Shares as soon as practicable.

The Company reminds the Shareholders and potential investors that they should refer to the announcements published on the respective websites of the Stock Exchange and the Company for any information relating to the Group.

The Company will keep the Shareholders and potential investors informed of any material development in connection with the above matters by way of periodic announcements and/or further announcement(s) as and when appropriate. Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company.

On behalf of the Board

New Ray Medicine International Holding Limited

Liu Yang

Chairman & Executive Director

Hong Kong, 31 July 2020

As of the date of this announcement, the executive Directors are Mr. Liu Yang, Mr. Huo Zhihong and Ms. Wang Qiuqin; and the independent non-executive Directors are Mr. Leung Chi Kin, Ms. Li Sin Ming, Ivy and Mr. Sy Lai Yin, Sunny.

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