Tongfang Kontafarma : PETITION INVOLVING THE MANAGING DIRECTOR

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.

(Incorporated in the Cayman Islands with limited liability)

This announcement is made by Tongfang Kontafarma Holdings Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.51B(2) of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") in relation to a change of particulars of Mr. Ng Qing Hai ("Mr. Ng"), being a managing director of the Company, under Rule 13.51(2)(u) of the Listing Rules based on the information provided by Mr. Ng to the Company on 6 July 2017.

The Company is given to understand that China Shanshui Cement Group Limited (stock code: 691), the issued shares of which are listed on the Stock Exchange ("Shanshui Cement") made an announcement on 2 June 2017 (the "Shanshui Cement Announcement") which stated that on 2 June 2017, a petition (the "Petition") was issued by Asia Cement Corporation ("ACC", a shareholder of Shanshui Cement) and its subsidiaries (collectively referred as the "Petitioners"), in the Court of First Instance in the High Court of Hong Kong against Tianrui (International) Holding Company Limited ("Tianrui", a shareholder of Shanshui Cement), Tianrui Group Company Limited ("Tianrui Group", holding company of Tianrui), former and present directors of Shanshui Cement (including Mr. Ng), Shanshui Cement and China Shanshui Investment Company Limited ("CSI").

According to the Shanshui Cement Announcement, the Petitioners alleged, inter alia, that Tianrui, CSI and the former and present directors of Shanshui Cement have conspired with one another and caused Shanshui Cement to perform misconduct which directly/indirectly benefit Tianrui ("Alleged Conspiracy"). The Petitioners further asserted that the Alleged Conspiracy has harmed the interest of the shareholders of Shanshui Cement (including ACC) and has breached the Listing Rules, the Hong Kong Code on Takeovers and Mergers, and fiduciary duties.

Based on the confirmation provided by Mr. Ng (the "Confirmation"), he was appointed as a non-executive director of Shanshui Cement for about two months only from 1 December 2015 to 2 February 2016 during which he had not been actively involved in the day-to-day operations of Shanshui Cement. According to the Confirmation and the Shanshui Cement Announcement, the board of directors of Shanshui Cement will be seeking legal advice on the claims in the Petition.

The Petition is not in relation to the Group nor in connection with the performance of duties by Mr. Ng to the Group. To the best knowledge of the directors of the Company (the "Directors") based on the available information as at the date of this announcement, the Directors are not aware of any impact on the current operation of the Group in any material aspect as a result of the Petition.

The Company will make further announcement in compliance with the Listing Rules as and when further developments should arise.

By order of the Board of

Chairman

Hong Kong, 6 July 2017

As at the date of this announcement, the Board comprises three executive Directors, namely Mr. Huang Yu (Chairman), Mr. Ng Qing Hai (Managing Director) and Mr. Zhang Yi; and three independent non-executive Directors, namely Mr. Chan Sze Chung, Mr. Zhang Ruibin and Mr. Zhang Junxi Jack.