Sihuan Pharmaceutical : VOLUNTARY ANNOUNCEMENT PROPOSED SHARE REPURCHASE UNDER THE GENERAL MANDATE

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Sihuan Pharmaceutical Holdings Group Ltd.

̬ᐑᔼᖹછٰණྠϞࠢʮ̡

(incorporated in Bermuda with limited liability)

(Stock Code: 0460)

VOLUNTARY ANNOUNCEMENT PROPOSED SHARE REPURCHASE UNDER THE

GENERAL MANDATE

This is a voluntary announcement made by Sihuan Pharmaceutical Holdings Group Ltd. (the "Company", together with its subsidiaries, the "Group").

The board of directors of the Company (the "Board") hereby announces that it intends to exercise its powers under the general mandate to repurchase (the "Repurchase Mandate") shares of the Company (the "Shares") granted by the shareholders of the Company at the annual general meeting held on 15 June 2020 (the "2020 AGM"), to repurchase Shares in the open market at appropriate timing (the "Proposed Share Repurchase"). Pursuant to the Repurchase Mandate, the Company is allowed to repurchase up to 946,568,220 Shares, being 10% of the total issued Shares as at the date of the 2020 AGM. The Repurchase Mandate will expire upon the earliest of: (a) the conclusion of the next annual general meeting of the Company; (b) the expiration of the period within which the next annual general meeting of the Company is required by the bye-laws of the Company or any applicable laws of Bermuda to be held; and (c) the date on which the authority given under the ordinary resolution approving the Repurchase Mandate is revoked or varied by an ordinary resolution of the shareholders in general meeting.

The Board has resolved to utilise the Repurchase Mandate (and such further mandate as may be granted by the shareholders of the Company) to repurchase Shares in the open market from time to time. The Company will conduct the Proposed Share Repurchase in compliance with the bye-laws of the Company, the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, Bermuda Companies Act, and all applicable laws and regulations to which the Company is subject.

The financial position of the Company is solid and healthy currently. The Board believes the Proposed Share Repurchase and subsequent cancellation of the repurchased Shares could enhance the value of the Shares thereby improving the return to shareholders of the Company. In addition, the Board believes that the Proposed Share Repurchase reflects the Company's confidence in its long term business prospects and would ultimately benefit the Company and is in the interests of the Company and the shareholders of the Company as a whole.

Shareholders and potential investors should note that any repurchase may be done subject to market conditions and at the Board's absolute discretion. There is no assurance of the timing, quantity or price of any repurchase. Shareholders and potential investors should therefore exercise caution when dealing in the securities of the Company.

By Order of the Board

Sihuan Pharmaceutical Holdings Group Ltd.

Dr. Che Fengsheng

Chairman and Executive Director

Hong Kong, 28 March 2021

As at the date of this announcement, the executive directors of the Company are Dr. Che Fengsheng (Chairman), Dr. Guo Weicheng (Deputy Chairman and Chief Executive Officer), Dr. Zhang Jionglong, Mr. Choi Yiau Chong and Ms. Chen Yanling; the non-executive director of the Company is Mr. Kim Jin Ha; and the independent non-executive directors of the Company are Mr. Patrick Sun, Mr. Tsang Wah Kwong and Dr. Zhu Xun.