Luye Pharma : Purchase of Shares under The Luye Pharma Share Award Scheme

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LUYE PHARMA GROUP LTD.

綠 葉 製 藥 集 團 有 限 公 司

(Incorporated in the Bermuda with limited liability)

(Stock Code: 02186)

Purchase of Shares under The Luye Pharma Share Award Scheme

Reference is made to the announcement of Luye Pharma Group Ltd. (the ''Company'') dated 10 January 2017 (the ''Announcement'') in relation to the adoption of the Luye Pharma Share Award Scheme (the ''Scheme''). Unless the context otherwise requires, capitalised terms used in this announcement have the same meanings as those defined in the Announcement.

The Board announces that the Trustee has, since the establishment of the Scheme, purchased on the open market an aggregate of 66,418,500 Shares, representing approximately 2% of the issued share capital of the Company for the Scheme. As disclosed in the Announcement, the purpose of the Scheme is to recognise contributions by certain employees of the Group and to provide them with incentives in order to retain them for the continuing operation and development of the Group and to attract suitable personnel for the further development of the Group. The Shares purchased was to set aside a pool of Shares available for allocation to the Selected Employees under the Scheme.

As at the date of this announcement, the Board has granted to the Selected Employees an aggregate of 17,861,000 Awarded Shares. The grant of the Awarded Shares is subject to acceptance by the respective Selected Employee and certain conditions set by the Board including staggered vesting period of up to three years. Upon vesting of the Awarded Shares, the Selected Employee may elect to have the Awarded Shares transferred to him or sell the Awarded Shares and receive the net proceeds from such sale. Please refer to the Announcement for a summary of the principal terms of the Scheme.

By Order of the Board

LUYE PHARMA GROUP LTD.

Liu Dian Bo

Chairman

Hong Kong, 31 May 2017

As at the date of this announcement, the executive Directors are Mr. LIU Dian Bo, Mr. YANG Rong Bing, Mr. YUAN Hui Xian and Ms. ZHU Yuan Yuan; the non-executive Director is Mr. SONG Rui Lin; and the independent non-executive Directors are Mr. ZHANG Hua Qiao, Professor LO Yuk Lam, Mr. LEUNG Man Kit and Mr. CHOY Sze Chung Jojo.