Sihuan Pharmaceutical : VOLUNTARY ANNOUNCEMENT-SIHUAN PHARMACEUTICAL OBTAINED DRUG REGISTRATION APPROVAL IN RELATION TO AMBROXOL HYDROCHLORIDE INJECTION

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Sihuan Pharmaceutical Holdings Group Ltd.

四 環 醫 藥 控 股 集 團 有 限 公 司

(incorporated in Bermuda with limited liability)

(Stock Code: 0460)

VOLUNTARY ANNOUNCEMENT

SIHUAN PHARMACEUTICAL OBTAINED DRUG

REGISTRATION APPROVAL IN RELATION TO AMBROXOL

HYDROCHLORIDE INJECTION

The board of directors (the "Board") of Sihuan Pharmaceutical Holdings Group Ltd. (the "Company", together with its subsidiaries, the "Group") is pleased to announce that approval of drug registration has been obtained from the National Medical Products Administration of the People's Republic of China on 30 March 2021 in relation to the Ambroxol Hydrochloride Injection (2ml:15mg) developed by the Group, approving the manufacture of the drug.

Ambroxol is a type of Category B drug under the National Reimbursement Drug List, and is the active metabolite of bromhexine, which can promote the formation of lung surface active substances and is also a new mucolytic drug that can relieve cough and dyspnoea and facilitate the expulsion of airway secretions. The Ambroxol Hydrochloride Injection (2ml:15mg) is indicated for (1) acute and chronic lung diseases associated with abnormal sputum secretion and poor sputum excretion function (for example, expectorant treatment of acute exacerbation of chronic bronchitis, wheezing bronchitis and bronchial asthma); (2) prophylactic treatment of pulmonary complications after surgery; and (3) treatment of infant respiratory distress syndrome (IRDS) in premature babies and newborns.

According to the data from Menet, in China's public medical institutions, drug costs of Ambroxol products amounted to over RMB7 billion in 2019. In the expectorant drug market of public medical institutions in key provinces and cities of China, sales of Ambroxol ranked the 2nd in 2019, with sales of approximately RMB822 million. It is expected that there is still significant room for growth in the market for Ambroxol Hydrochloride injection, being the mainstream dosage form of Ambroxol.

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The approval of drug registration in relation to the Ambroxol Hydrochloride Injection (2ml:15mg) developed by the Group is expected to further benefit the majority of patients, and also be beneficial to its future market sales and market competition, as well as having positive impact on the operation results of the Group.

This announcement is being made by the Group on a voluntary basis to update the investing public on the Group's latest business development, and does not constitute, and is not intended to be, an advertisement regarding the use of any medicine, surgical appliance, treatment or orally consumed product.

By Order of the Board

Sihuan Pharmaceutical Holdings Group Ltd.

Dr. Che Fengsheng

Chairman and Executive Director

Hong Kong, 1 April 2021

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.

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