Zhongzhi Pharmaceutical : POSITIVE PROFIT ALERT

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Zhongzhi Pharmaceutical Holdings Limited

中 智 藥 業 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3737)

POSITIVE PROFIT ALERT

This announcement is made by Zhongzhi Pharmaceutical Holdings Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 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 under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The Board of directors ("Board") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2020 and the information currently available to the Board, the Group is expected to record a significant increase of approximately over 20% in net profit for the six months ended 30 June 2020 as compared with the corresponding period in 2019. Such expected increase is mainly due to Caojinghua Cell-broken Herb, the main product line of the Company, continues to receive growing recognition from the consumers.

The information set out in this announcement is only based on the information currently available to the Company and the Board's preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2020 and is not based on any figure or information which has been audited or reviewed by the Company's auditors, and may be subject to amendments. Shareholders and potential investors are advised to read the interim results announcement of the Company for the six months ended 30 June 2020 which is expected to be published by the end of August 2020.

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Shareholders and potential investors should exercise caution when dealing in the securities of the Company.

By Order of the Board

Zhongzhi Pharmaceutical Holdings Limited

Mr. Lai Zhi Tian

Chairman and Executive Director

Hong Kong, 23 July 2020

As at the date of this announcement, the Board comprises nine Directors. The executive Directors are Mr. Lai Zhi Tian, Mr. Lai Ying Feng, Mr. Cao Xiao Jun and Mr. Cheng Jin Le. The non-executive Directors are Ms. Jiang Li Xia and Mr. Yang Ai Xing. The independent non-executive Directors are Mr. Ng Kwun Wan, Mr. Wong Kam Wah and Mr. Zhou Dai Han.

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