Luye Pharma : UNAUDITED FINANCIAL INFORMATION OF YANTAI LUYE

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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)

UNAUDITED FINANCIAL INFORMATION OF YANTAI LUYE

Reference is made to the announcement of Luye Pharma Group Ltd. (the ''Company'', together with its subsidiaries, the ''Group'') dated 19 December 2017 (the ''Announcement'') in relation to certain unaudited financial information of Yantai Luye Pharma Holdings Co., Ltd. (煙台綠 葉醫藥控股有限公 司 )( ''Yantai Luye'') and its intention to apply for registration and possible issuance of commercial paper and financing notes. Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

As disclosed in the Announcement, Yantai Luye has already made the Application in relation to the registration of the proposed issue by Yantai Luye of certain interest-bearing short term commercial paper for an aggregate principal amount of up to RMB1.8 billion. It is uncertain whether or not the Application will be registered and as to the timing of the release of the results of the Application. Further, even if the Application were successful, whether or not, the timing and the extent to which Yantai Luye will issue such interest-bearing short term financing notes will ultimately depend on the capital requirements of the Group.

Documents in relation to the Application, which included unaudited financial information of Yantai Luye and its subsidiaries for the three months ended 31 March 2017 and 2018 or as at 31 March 2018, may be disclosed on the website of NAFMII (http://zhuce.nafmii.org.cn/). Selected unaudited income statement items of Yantai Luye and its subsidiaries for the three months ended 31 March 2017 and 2018 as contained in the Application documents are reproduced below:

For the three months ended

31 March

2018 2017

RMB million RMB million

Selected unaudited balance sheet items of Yantai Luye and its subsidiaries as at 31 March 2018 are reproduced below:

Attention of the shareholders and potential investors of the Company is drawn to the fact that such unaudited financial information prepared pursuant to relevant PRC laws and regulations are for the purpose of the Application and the proposed issue only. Such unaudited financial information of Yantai Luye disclosed in this announcement above, have been prepared in accordance with the PRC Generally Accepted Accounting Principles, which may require adjustment during the course of review and auditing and under the International Financial Reporting Standards for preparation of the Group's consolidated financial statements. In addition, such unaudited consolidated financial information is limited solely to the operation of Yantai Luye and its subsidiaries, which does not reflect a full picture

of the operation or status of the Group. Shareholders of the Company and potential investors should not rely solely on such information in deciding whether or not to deal in the securities of the Company.

Further, the Application and the proposed issue may or may not proceed. Information which will be disclosed on the website of the NAFMII may be subject to changes from time to time. Therefore, shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

LUYE PHARMA GROUP LTD.

Liu Dian Bo

Chairman

Hong Kong, 2 May 2018

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