Bloomage BioTechnology Corporation Ltd : Announcements and Notices - Inside Information

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(incorporated in the Cayman Islands with limited liability)

This announcement is made by Bloomage BioTechnology Corporation Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").

The Group's principal operating subsidiary is a manufacturer of hyaluronic acid ("HA") in the PRC principally engaging in the development, manufacture and sale of a diversified range of HA raw materials and end products. In July 2012, the first end product of the Group - Hyaluronan Soft Tissue Filling Gel (product name "BioHyalux") was approved for entry into the market by the China Food and Drug Administration ("CFDA"). The Group's business model has evolved from single HA raw materials manufacturing to a model mixed with downstream terminal retail. Upon the entry of BioHyalux into the market, due to the fact that there was only one competitor of similar products in the PRC and the plastic surgery industry in which BioHyalux was positioned was a new industry with huge growth potential in the PRC, the market has a favourable expectation on the development of this business. The management of the Company has been excited at the long term development and prospect of this business and has great expectation on it. However, the management of the Company is also aware that expansion into a totally new area involves a lot of uncertainty and emphasizes that the maturity of this business requires a process of step-by-step exploration and improvement.
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Besides, the Group is aware that some similar products had been approved for entry into the market by CFDA recently. Its approval time was earlier than what was expected by the Group and thus the competition faced by the Group in this business is more keen than expected by the Group and there is uncertainty in relation to the impact of new competitors on the Group's product in the future. The Group may adjust its marketing strategy in response to the changes in the market environment and this may affect the expected profitability of the Group in the short term.

In relation to the new production plant construction project of the Group in Jinan City, Shandong Province, the PRC, due to the postponement of the manufacturing of some major production equipments, there is a delay in the installation of the said equipments in the new production plant. The production commencement date of the new production plant is expected to be delayed to mid-2014.

Hong Kong, 15 October 2013
By order of the Board

Chairman

As at the date of this announcement, the executive Directors are Ms. Zhao Yan, Ms. Liu Aihua, Ms. Wang Aihua; the non-executive Director is Mr. Guo Jiajun; the independent non-executive Directors are Ms. Zhan Lili, Mr. Zhang Fuping, Mr. Qin Bin and Mr. Jin Xuekun.

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