Tongfang Kontafarma : RESIGNATION OF NON-EXECUTIVE DIRECTOR AND APPOINTMENT OF EXECUTIVE 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.

RESIGNATION OF NON-EXECUTIVE DIRECTOR

AND

APPOINTMENT OF EXECUTIVE DIRECTOR

The Board announces the following changes to the Board with effect from 23 January 2018:

1.

Mr. Zhang Yi has resigned as a non-executive Director of the Company and a member of the Share Dealing Committee; and

2.

Mr. Jiang Chaowen, currently the chief executive officer of the Company, has been appointed as an executive Director and a member of each of the Executive Committee and the Share Dealing Committee.

RESIGNATION OF NON-EXECUTIVE DIRECTOR

The board (the "Board") of directors (the "Directors", each a "Director") of Tongfang Kontafarma Holdings Limited (the "Company", together with its subsidiaries, the "Group") announces that Mr. Zhang Yi ("Mr. Zhang") has tendered his resignation as a non-executive Director and a member of the share dealing committee of the Board (the "Share Dealing Committee") with effect from 23 January 2018 in order to pursue other personal and business commitments. Mr. Zhang has confirmed that he has no claim against the Company in respect of his resignation, he has no disagreement with the Board and there is no other matter relating to his resignation that needs to be brought to the attention of the shareholders of the Company (the "Shareholders") and The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

The Board would like to take this opportunity to express its gratitude to Mr. Zhang for his contribution to the Company during his tenure of office.

APPOINTMENT OF EXECUTIVE DIRECTOR

Reference is made to the announcement of the Company dated 11 December 2017 in relation to, among other things, the appointment of Mr. Jiang Chaowen ("Mr. Jiang") as the chief executive officer of the Company.

The Board is pleased to announce that with effect from 23 January 2018, Mr. Jiang, the chief executive officer of the Company, has been appointed as an executive Director and a member of each of the executive committee of the Board (the "Executive Committee") and the Share Dealing Committee.

Mr. Jiang, aged 52, joined the Group in July 2016, is currently the president of Ν˙ᖹุ ණྠϞࠢʮ̡ (Tongfang Pharmaceutical Group Co., Ltd*) (formerly known as ̏ԯഓ ΈႡᖹϞࠢʮ̡ (Beijing Ziguang Pharmaceutical Co., Ltd.*)) and the chairman of ౶Ԏ ၅(̏ԯ)͛يҦஔϞࠢʮ̡ (SPF (Beijing) Biotechnology Co., Ltd.*), ࠠᅅੰᆀႡᖹϞ ࠢʮ̡ (Chongqing Kangle Pharmaceutical Co., Ltd.*), ৯ГഓΈԕ᏶ᖹุϞࠢʮ̡ (Shaanxi Unisplendour Life Care Pharmaceutical Co., Ltd.*) and Гᔛ؍ٺ̹ᔼᖹϞࠢ ʮ̡ (Tibet Linzhi Medical Pharmaceutical Co., Ltd.*), all of which are the subsidiaries of the Company.

Mr. Jiang obtained his master degree from the School of Business Administration of Chongqing University, during which time he did further study at the Party School of Chinese Communist Party of Chongqing City, Tsinghua University, Southwest China Normal University, and Chongqing University etc. Prior to joining the Group, he held positions of general manager and chairman in various companies, including ГیႡᖹɓ ᅀ (The First South-west Pharmaceutical Factory*) (ࠠᅅڡජᖹุϞࠢʮ̡ (Chongqing Qingyang Pharmaceutical Co., Ltd.*)), ࠠᅅԳԕ͛يʈ೻Ϟࠢʮ̡ (Chongqing Jiachen Biological Engineering Co., Ltd.*), Chongqing Jewelland Pharmaceutical Development Co., Ltd. and Si Chuan Jewelland Pharmaceutical Co., Ltd. He has nearly 30 years of extensive management experience in the pharmaceutical industry.

Mr. Jiang has entered into a service contract with the Company with no fixed term. He will be subject to retirement by rotation and re-election at the annual general meetings of the Company in accordance with the articles of association of the Company or any other applicable laws from time to time. Pursuant to such service contract, Mr. Jiang is entitled to a Director's fee of HK$10,000 per annum and an annual remuneration of HK$1.5 million as an executive Director and the chief executive officer of the Company, which is determined by the Board with reference to his qualifications, experience, duties and responsibilities as well as the prevailing market rate and the remuneration policy of the Company. Mr. Jiang had personal interest in 12,000,000 share options of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571, the Laws of Hong Kong) (the "SFO").

As at the date of this announcement, save as disclosed herein, Mr. Jiang (i) does not have any interest in the shares of the Company within the meaning of Part XV of the SFO; (ii) does not hold any other positions with the Company and/or other members of the Group; (iii) does not have any relationship with any other Directors, senior management, substantial Shareholders (as defined under the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules")) or controlling Shareholders (as defined under the Listing Rules) of the Company; and (iv) does not hold any other directorship in any listed public companies in Hong Kong or overseas in the three years prior to the date of this announcement.

Save as disclosed above, there are no other matters in connection with the appointment of Mr. Jiang that need to be brought to the attention of the Shareholders or any of the matters that need to be disclosed under Rule 13.51(2)(h) to (v) of the Listing Rules.

The Board would like to take this opportunity to express its warm welcome to Mr. Jiang upon him joining the Board.

By order of the Board of

Tongfang Kontafarma Holdings Limited

Huang Yu

Chairman

Hong Kong, 23 January 2018

As at the date of this announcement, the Board comprises three executive Directors, namely Mr. Huang Yu (Chairman), Mr. Ng Qing Hai and Mr. Jiang Chaowen (Chief Executive Officer) and three independent non-executive Directors, namely Mr. Chan Sze Chung, Mr. Zhang Ruibin and Mr. Zhang Junxi Jack.

*

For identification purposes only