3SBio : VOLUNTARY ANNOUNCEMENT - Right of Distribution and Promotion of New Product

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(incorporated in the Cayman Islands with limited liability)

(Stock Code: 1530) VOLUNTARY ANNOUNCEMENT

3SBio Inc. (the "Company") wishes to provide to the shareholders of the Company the attached press release in respect of the distribution and promotion agreement with two subsidiaries of Eli Lilly and Company (NYSE: LLY), for the distribution and promotion of insulin products namely, Humulin Cartridges, Humulin Kwikpens and reusable pens, in the People's Republic of China by three subsidiaries of the Company.

This is a voluntary announcement made by the Company. Shareholders of the Company and potential investors are advised to exercise due care when dealing in the shares of the Company.

By order of the Board

3SBio Inc. Mr. LOU Jing

Chairman

Hong Kong, May 16, 2017

As at the date of this announcement, the Board comprises Mr. LOU Jing, Mr. TAN Bo, Ms. SU Dongmei and Mr. HUANG Bin as executive directors; Mr. LIU Dong and Mr. LV Dong as non-executive directors; and Mr. PU Tianruo, Mr. David Ross PARKINSON and Mr. MA Jun as independent non-executive directors.

3SBio Inc. was granted the Right of Distribution and Promotion of Humulin 優泌林®, an Insulin Product of Lilly, in Mainland China

May 16, 2017, Shanghai - 3SBio Inc. announced today that its subsidiaries (together with 3SBio Inc., "3SBio") has entered into a strategic cooperation agreement with Lilly China (and its affiliate), pursuant to which, 3SBio has been granted the exclusive right of distribution and promotion of Humulin 優泌林®, an insulin product of Lilly, in China from July 1, 2017.

Pursuant to the agreement, leveraging on its nationwide sales network and its existing metabolism products segment resources, 3SBio will establish a marketing and promotion team which will cover a wide array of diabetes products (including Humulin 優泌林®). Lilly China will be responsible for the production and supply of the Humulin 優泌林®products produced in accordance with its global quality standards. Currently, both parties are cooperating closely to ensure a smooth transition.

Humulin 優泌林®, formulated in 1982, was the first bio-synthetic insulin product in the world and was also the first medical product for human produced by recombinant DNA techniques. Since its launch in China in 1997, Humulin 優泌林®has in aggregate served millions of Chinese diabetic patients.

Dr. Jing Lou, the chairman of the Board and the chief executive officer of 3SBio Inc., is very positive about the prospect of this cooperation. According to him, "Lilly is a world-leading pharmaceutical enterprise. The strategic cooperation with Lilly in relation to the distribution and promotion right of Humulin 優泌林®, a typical insulin product, will further enrich the product lines

of 3SBio and benefit more patients in mainland China. As a leading biopharmaceutical company in mainland China, 3SBio Inc. has abundant experience and established network in the development, production and marketing of biotechnology products. 3SBio Inc. will expand the exclusive market and the marketing team for metabolism products, and will take advantage of its past experience to more rapidly serve a broader grass-root market in mainland China, and this will allow more patients to have access to quality products. Such strategic cooperation with Lilly signifies 3SBio Inc.'s direction in entering into the diabetes treatment sector with full gear, making an outstanding domestic company capable of bringing benefits to diabetic patients in mainland China, and achieving a win-win situation for the society and patients."

"The agreement with 3SBio Inc. is another successful case of Lilly's great collaborations with leading Chinese pharmaceutical enterprise partners." said Mr. Andrew Hodge, President of Lilly China, and he further added, "The collaboration will enable Humulin 優泌林®to be accessible to more patients in broader territories in mainland China, taking advantage of our partner's nationwide network. It will also allow Lilly to shift significant resources to the promotion of Humalog 優泌樂®analog insulin and Lilly's upcoming innovative diabetes therapies. Lilly continues to invest heavily in mainland China to help diabetic patients. For instance, we are currently completing our insulin manufacturing plant in Suzhou, China at a cost of 3 billion yuan".

The prevalence of diabetes has a significant influence on people's health and the social economy, especially in the developing countries. The complications of diabetes may cause cardiovascular lesions, kidney failure, loss of vision and amputation. On 6 April 2017, the World Health Organization issued the first "Global Report on Diabetes", which showed that the number of adults suffering from diabetes, most of whom are living in the developing countries, has almost tripled in recent 40 years. According to the statistics, the incidence rate of type 2 diabetes rose dramatically in mainland China in the past decades, from less than 5% in 1980 to more than 10% at present in respect of the population of male diabetic patients in mainland China (the population of diabetic patients reached 110 million in 2015). Mainland China has now become the largest population of diabetic patients in the world.

Established in 1993, 3SBio Inc. is a leading biotechnology company in mainland China with a long- term objective of technological innovation. Over the past years, leveraging on its rich experience in academic promotion and excellent management team, 3SBio Inc. has undoubtedly become the dominate leader in the product fields it involved. 3SBio Inc. is capable of rapidly expanding the coverage of this typical Lilly's brand in the broad market of China. This strategic cooperation with Lilly China will bring more optimal options for patients in the treatment of diabetes, and will achieve the synergic effect between the product and the existing metabolism team of 3SBio Inc.. 3SBio Inc. will step up its efforts in achieving the lofty mission of improving the life quality of patients and bringing benefits to people's health by providing high quality drugs, and is determined to make important contributions to diabetic patients and the academic progress and development in the treatment sector in mainland China.