Luye Pharma : VOLUNTARY ANNOUNCEMENT - LUYE GRANTED CIPLA MEDPRO THE EXCLUSIVE DISTRIBUTION AND MARKETING RIGHTS IN SOUTH AFRICA AND CERTAIN NEIGHBORING COUNTRIES FOR SEROQUEL

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LUYE PHARMA GROUP LTD.

綠 葉 製 藥 集 團 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 02186)

VOLUNTARY ANNOUNCEMENT

LUYE GRANTED CIPLA MEDPRO THE EXCLUSIVE DISTRIBUTION

AND MARKETING RIGHTS IN SOUTH AFRICA AND CERTAIN

NEIGHBORING COUNTRIES FOR SEROQUEL®

The board of directors (the ''Board'') of Luye Pharma Group Ltd. (the ''Company'', together with its subsidiaries, the ''Group'') is pleased to announce that Luye Hong Kong Limited (''Luye Hong Kong''), a wholly-owned subsidiary of the Group, has signed an exclusive distribution and marketing service agreement with Cipla Medpro South Africa (Pty) Limited (''Cipla Medpro''), a wholly-owned subsidiary of Cipla Limited, India (''Cipla'') for Seroquel® and Seroquel XR® in South Africa, Namibia and Botswana.

Seroquel® (quetiapine fumarate, immediate release, IR) and Seroquel XR® (extended release formulation) are atypical anti-psychotic (AAP) medicines with antidepressant properties. The main indications for Seroquel are the treatment of schizophrenia and bipolar disorder. Seroquel XR® is also approved in some markets for major depressive disorder and generalised anxiety disorder.

On 7 May 2018, the Company, Luye Hong Kong and AstraZeneca UK Limited (''AstraZeneca'') entered into an asset purchase and license agreement pursuant to which AstraZeneca transferred to Luye Hong Kong certain assets, and granted to Luye Hong Kong a licence related to Seroquel® and Seroquel XR® in certain territories covering 51 countries and regions, including China, South Africa, Namibia, Botswana, the United Kingdom, Brazil, Australia, Saudi Arabia, Mexico, South Korea, Thailand, Argentina, Malaysia and other countries and regions in Asia, Latin America, Africa, Oceania and Eastern Europe. For further information about the asset purchase and license agreement, please refer to the announcements of the Company dated 7 May, 5 June, 22 June and 28 June 2018, respectively, and the circular dated 5 June 2018.

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Cipla Medpro is South Africa's third largest pharmaceutical company in the private sector. With its wide network and rich experience in distribution and marketing, the directors of the Company believe that the product will achieve strong growth in South Africa and neighboring countries.

Apart from products under the Seroquel series, the Group has several products under development for Central Nervous System treatment including projects such as LY03004 for schizophrenia and bipolar disorder, LY03003 for Parkinson's disease, LY03005 for the treatment of major depressive disorder, LY03010 for schizophrenia and schizoaffective disorder, LY30410 for mild to moderate Alzheimer's disease and LY03012 for chronic pain. The registration work in relation to the above pipeline products has been progressing well in strategic markets such as China, the United State, Europe and Japan, and the products are expected to be launched in these countries and further expanded into the global markets.

By Order of the Board

LUYE PHARMA GROUP LTD.

Liu Dian Bo

Chairman

Hong Kong, 10 February 2020

As at the date of this announcement, the executive directors of the Company are Mr. LIU Dian Bo, Mr. YANG Rong Bing, Mr. YUAN Hui Xian and Ms. ZHU Yuan Yuan; the non-executive director of the Company is Mr. SONG Rui Lin; and the independent non-executive directors of the Company are Mr. ZHANG Hua Qiao, Professor LO Yuk Lam, Mr. LEUNG Man Kit and Mr. CHOY Sze Chung Jojo.

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