Sihuan Pharmaceutical : CLARIFICATION ANNOUNCEMENT

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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)

CLARIFICATION ANNOUNCEMENT

Reference is made to the announcement of Sihuan Pharmaceutical Holdings Group Ltd. (the ''Company'') dated 23 August 2020 (the ''Announcement''). Unless otherwise defined, capitalised terms used in this announcement have the same meanings as defined in the Announcement. The Company wishes to clarify that the heading of the Announcement should read:

''DISCLOSEABLE TRANSACTION

SUBSCRIPTION BY INVESTMENT FUNDS UNDER

CMG-SDIC CAPITAL CO., LTD.

IN XUANZHU (SHIJIAZHUANG) BIOPHARMACEUTICAL CO., LTD.''

Both Investor A and Investor B referred to in the Announcement are funds managed by CMG-SDIC Capital Co., Ltd. (國投招商投資管理有限公司). For further information on the two funds, please refer to the Announcement.

Save as disclosed in this announcement, the remaining contents of the Announcement remain unchanged.

By Order of the Board

Sihuan Pharmaceutical Holdings Group Ltd.

Dr. Che Fengsheng

Chairman and Executive Director

Hong Kong, 24 August 2020

As at the date of this announcement, the executive directors of the Company are Dr. Che Fengsheng (Chairman), Dr. Guo Weicheng (Deputy Chairman and Chief Executive Officer), Dr. Zhang Jionglong, Mr. Choi Yiau Chong and 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.