Zhongzhi Pharmaceutical : CHANGE OF CHIEF EXECUTIVE AND CHIEF FINANCIAL OFFICER

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Zhongzhi Pharmaceutical Holdings Limited ʕ౽ᖹุછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3737)

CHANGE OF CHIEF EXECUTIVE AND

CHIEF FINANCIAL OFFICER

The board (the "Board") of directors (the "Directors") of Zhongzhi Pharmaceutical Holdings Limited (the "Company", collectively with its subsidiaries, the "Group") announces the following changes to the Board with effect from 24 March 2021:

• (i) Mr. Lai Ying Feng, an executive Director, has been appointed as a chief executive in place of Mr. Lai Zhi Tian, an executive Director and the chairman; and

• (ii) Mr. Lai Ying Sheng has been appointed as a chief financial officer in place of Mr. Cao Xiao Jun, an executive Director and the deputy general manager of the Company.

CHANGE OF CHIEF EXECUTIVE

Mr. Lai Zhi Tian has stepped down from his role as chief executive ("CE") of the Company due to other work arrangements, with effect from 24 March 2021. He will remain as the Chairman of the Board and an executive Director of the Company. The Board considers that the resignation of Mr. Lai Zhi Tian as CE can enhance the corporate governance of the Group by splitting the roles of the Chairman and the CE in compliance with the Corporate Governance Code as set out in Appendix 14 to the Rules (the "Listing Rules") Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). Mr. Lai Zhi Tian has confirmed that he has no disagreements with the Board and that there is no other matter in connection with his above resignation needs to be brought to the attention of the shareholders of the Company or the Stock Exchange. The Board would like to take this opportunity to express its sincere gratitude and appreciation to Mr. Lai Zhi Tian for his past contribution to the Company as the CE.

Mr. Lai Ying Feng has been appointed as the CE with effect from 24 March 2021. The biographical details of Mr. Lai Ying Feng are set out below:

Mr. Lai Ying Feng, aged 29, was appointed as the executive Director of the Company on 14 May 2018 and is a member of each of the remuneration committee and the nomination committee of the Company. He joined the Group since April 2014 and has served as a director of sales in several sales divisions, helping to formulate sales strategies, and has served as the head of branding for the Company, leading the Group's brand and marketing strategies. Since July 2016, Mr. Lai has served as a director of Zhongshan Zhongzhi Pharmaceutical Group Co., Ltd.* (ʕʆ̹ʕ౽ᖹุණྠϞࠢʮ̡), a subsidiary of the Company, mainly responsible for organizing the formulation of business plan of the Company, investment and financing plan, and making decisions on major issues. He is the son of Mr. Lai Zhi Tian, an executive Director and Ms. Jiang Li Xia, a non-executive Director, and brother to Mr. Lai Ying Sheng, a chief financial officer.

In July 2014, Mr. Lai obtained a bachelor's degree in economics from the Faculty of Arts and Social Sciences at Simon Fraser University in Canada and obtained a qualification certificate for the secretary of the board. Since April 2016, Mr. Lai has also been the vice president of the 1st Youth Entrepreneurs Association of Zhongshan Torch Hi-tech Industrial Development Zone* (ୋɓ֣ʕʆ˦ދ৷Ҧஔପุක೯ਜڡϋΆุ࢕՘ึ).

Mr. Lai has entered into a service agreement as executive Director of the Company for a term of three years commencing on 14 May 2018 and shall continue thereafter until terminated by either party by giving not less than three months' notice in writing at any time after such initial fixed term to the other and he is subject to retirement from office and eligible for re-election at the forthcoming annual general meeting of the Company in accordance with the articles of association of the Company. Pursuant to the service agreement, Mr. Lai is entitled to HK$300,000 per annum (excluding payment pursuant to any discretionary benefits or bonus, granting of share options, or other fringe benefits) for his appointment as an executive Director and may also be entitled to a discretionary bonus if so recommended by the Remuneration Committee and approved by the Board having regard to the operation results of the Group and his performance. There is no service contract in relation to the appointment of Mr. Lai as the CE and is not entitled to receive any emolument as the CE. As at the date of this announcement, Mr. Lai holds 5,990,000 shares of the Company (as defined under Part XV of the Securities and Futures Ordinance). Save as disclosed above, Mr. Lai does not have any interests in the shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance.

Save as disclosed above, (i) Mr. Lai did not hold any directorship in the past three years in other listed companies in Hong Kong or overseas; (ii) Mr. Lai does not hold any other position in the Company or any of its subsidiaries; (iii) Mr. Lai does not have any relationship with any other Directors, chief executives, senior management, substantial shareholders, controlling shareholders or management shareholders of the Company or any of its subsidiaries, or any of their respective associates; and (iv) there is no other information relating to Mr. Lai that is required to be disclosed pursuant to Rules 13.51(2)(h) to (v) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited or any other matters that need to be brought to the attention of the shareholders of the Company in relation to the appointment of Mr. Lai.

CHANGE OF CHIEF FINANCIAL OFFICER

Mr. Cao Xiao Jun has stepped down from his role as chief financial officer of the Company ("CFO") due to other work arrangements, with effect from 24 March 2021. He will remain as the executive Director and the deputy general manager of the Company and Mr. Lai Ying Sheng has been appointed as the CFO of the Company effect from 24 March 2021.

The biographical details of Mr. Lai Ying Sheng are set out below:

Mr. Lai Ying Sheng, aged 27, joined the Group on 1 October 2018 as the Group's Assistant Financial Controller. Mr. Lai graduated from the University of British Columbia, Canada, in 2016 with an undergraduate degree in Commerce, specialized in Accounting. Since then, he has worked in the audit practice of KPMG LLP, Vancouver office, and has completed his Chartered Professional Accounting Qualifications during his time at KPMG.

Upon joining the Group in 2018, Mr. Lai headed the Group's Accounting department in its daily operations and, over time, began to manage the Group's other management functions including Human Resources, Internal Controls, Investor Relationships and Purchasing. He is the son of Mr. Lai Zhi Tian, an executive Director and Ms. Jiang Li Xia, a non-executive Director, and brother to Mr. Lai Ying Feng, an executive Director and CE.

By order of the Board

Zhongzhi Pharmaceutical Holdings Limited

Mr. Lai Zhi Tian

Chairman and Executive Director

Hong Kong, 24 March 2021

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.

*

The English name for identification purpose only