This announcement is for informational purposes only and is not an offer tosell or the solicitation of an offer to buy securities in the United States orin any other jurisdiction in which such offer, solicitation or sale would beunlawful prior to registration or qualification under the securities laws ofany such jurisdiction. Neither this announcement nor anything herein forms thebasis for any contract or commitment whatsoever. Neither this announcement norany copy hereof may be taken into or distributed in the United States. Thesecurities referred to herein have not been and will not be registered underthe United States Securities Act of 1933, as amended, and may not be offered orsold in the United States absent registration or an applicable exemption fromregistration. Any public offering of securities to be made in the United Stateswill be made by means of a prospectus. Such prospectus will contain detailedinformation about the Company and management, as well as financial statements.No public offer of securities is to be made by the Company in the UnitedStates.

This press release contains forward-lookingstatements and you are cautioned not to place undue reliance on anyforward-looking statements contained herein. We can give no assurance thatthese forward-looking statements will prove to have been correct. Expectationsreflected in these forward-looking statements are subject to change and weundertake no obligation and do not intend to update or revise anyforward-looking statements herein.

Charmacy Pharmaceutical announces proposed listing on the

Main Board ofHong Kong Stock Exchange

Offer price setbetween HK$7.60 and HK$8.60 per share

to raise up to about HK$240.8 million

[1 December 2015, Hong Kong] Charmacy Pharmaceutical Co., Ltd. (“Charmacy Pharmaceutical” or the “Company”; stock code: 2289.HK), one of the leading pharmaceuticaldistributors in Southern China, today announced the proposedlisting of its H shares (the “H Shares”) on the Main Board of The StockExchange of Hong Kong Limited (“SEHK”).

Charmacy Pharmaceuticalplans to offer an aggregate of 28.0 million H Shares (subject to the over-allotment option),consisting of 25.2 million international offershares (subject to adjustment and the over-allotment option) and 2.8 million Hong Kong offer shares(subject to adjustment), at a price range between HK$7.60 and HK$8.60 per H Share.

The Hong Kong public offering will open at 9:00 a.m. on Wednesday, 2 December 2015 and close at 12:00 noonon Monday, 7 December 2015.Dealings in H Shares on the SEHK are expected to commence on Monday, 14 December 2015, with the stock code 2289.HK in board lots of500 H Shares each. There will be an over-allotmentoption to be granted by the Company to increase the offering size by up to 15%, equivalent to 4.2 million additional H Shares.

Guotai Junan Capital Limited is the Sole Sponsor of this offering. Guotai Junan Securities (Hong Kong) Limited is theSole Global Coordinator, Sole Bookrunner and Sole Lead Manager. Guangzhou Pharmaceutical Baiyunshan Hong Kong Company Limited and Xiangxue Group (HongKong) Company Limited are cornerstone investors.

One of the leading and established pharmaceutical distributors in Southern China, well-positioned to benefit from industry consolidation opportunities and expansion of the pharmaceutical distribution market in the PRC

Charmacy Pharmaceuticalis one of the leading pharmaceuticaldistributors in Southern China based in Guangdong Province. Itis the third largest privately-owned pharmaceutical distribution company inSouthern China in terms of revenue generated from pharmaceutical distributionbusiness in 2014. The continuous expansionof the pharmaceutical distribution market in the PRC and the high growingpotential of Southern China provide Charmacy Pharmaceutical with the favourable market conditions to quickly expand in the future.

The pharmaceuticaldistribution market in Southern China expands continuously; sales of the pharmaceutical distribution industry in the region increased from RMB54.5billion in 2010 to RMB126.6 billion in 2014, representing a CAGR of 23.5%. Accordingto PICO’s analysis, it is expected that until 2018, sales of the pharmaceutical distribution industry in Southern China will reach RMB228.9 billion,representing a CAGR of 16.0%.

In recent years, the PRC government has issued a number of policies and measures to support the development of pharmaceutical industry, encourage the consolidation in the pharmaceutical industry and support the expansion of large pharmaceutical distributors through acquisitions of smaller one. Charmacy Pharmaceutical has been rooted in Guangdong Province since 2000 and accumulated rich industrial experiences and resources, which enabled the Company to benefit from the solid economic position of Guangdong Province and Southern China and leverage on the rapid growth of pharmaceutical industry in Southern China as well as the industry consolidation opportunitiesto further concolidate and expand its market share.

Maintains strong and stable relationships with major customers and suppliers to enhance the competitiveness so as to promote the business development

Pharmaceuticial industryhas an intense competition and ever-changing products. In order to maintain the competitiveness, Charmacy Pharmaceutical has had establishedstable business relationships with different suppliers and customers so as to promote the steady growth of the business. To improve the services and productmix, Charmacy Pharmaceutical collects customers feedbacks by organizing seminars and sending sales representatives to conduct business visits. For the six months ended 30 June 2015, Charmacy Pharmaceutical established businessrelationships with 5 largest customers for more than 10 years and as of 30 June 2015, Chuangmei Pharmaceutical had over 1,000 customers withbusiness relationship for over 3 years. The customer base also increased significantlyfrom 2,296 in 2012 to 4,495 in the first half of 2015, which shows the Company’sservice capability and market reputation were highly recognized. For the suppliers, as of 30 June 2015, Charmacy Pharmaceutical had established business relationships with the top 5 suppliers for more than 10 years and with approximately 60% suppliers for more than 3 years, respectively. This stable network of suppliers could help to ensure the timelysupply of products, so as to  provide Charmacy Pharmaceutical with solid product profolio and advanced competitive advantages, and also the concrete foundation for the sustainable business development.

B2B e-commerce platform helps to understand customer preference and extend the customer base

Charmacy Pharmaceuticalhas a sound B2B e-commerce platform – “Charmacy e-Medicine”, which officially launched and started the pilot run in June 2015, and is expected to operate infull scale in the fourth quarter of 2015, to provide a more convenient orderingservices to customers so as to improve the customer satisfaction. This platformnot only can help Charamcy Pharmaceutical to better understand the customers preference, develop marketing strategies and expand the customer base at lower cost, but also can further extend and enlarge the existing sales channels and complement bothonline and offline market. Within one week after the beginning of pilot run ofthe system, “Charmacy e-Medicine” has recorded about 2,800 registered customers and realised approximately 1,800 e-transactions and recorded a total sales amount of approximately RMB1.4 million.

Effective distribution network and operationsystem improve the operation efficiency and further extend the distribution range

Charmacy  Pharmaceuticalhas two logistics centers located in Shantou and Foshan with differenttypes of warehouses including, among others, cool warehouse and cold warehouseto ensure the products have the best condition before delivery. The Companyposseses professional transportation fleet to cover delivery distance of approximately 150 km radius from the logistic centres. Charmacy Pharmaceuticalalso engaged third party logistic service providers to further extent the distribution range to provide effective and efficient services in Southern China.

Charmacy Pharmaceuticalhas a computerized inventory management system, which will notify the Company,generate automatic purchase orders to ensure the optimal inventory levels andallow the Company to track the inventory levels on a real-time basis. Thissystem enables the Company to flexibly optimize future inventory levels andproduct offerings and increase the precision of the inventory control system,leading to further enhancement in operational efficiency.

Experienced management team leads Charmacy Pharmaceutical with a proven track record

Charmacy Pharmaceutical has an experienced senior management team with an average of over 15 years of management experience. They have a deep understanding of the industry and development trends, and are able to make accurate business assessments and judgements,timely capture business opportunities and prudently adjust the businesss trategies so as to quickly respond to the rapidly changing pharmaceutical distribution market and lead the Company to seize every opportunity ahead.

With the supports from the highly motivated and well-trained workforce, and under the lead ofthe visionary and experienced management team, Charmacyi Pharmaceutical can effectively execute business strategies and was rewarded a number ofrecognitions and awards, including, “Triple A Credit Rating Enterprise in China”, “Best Innovation in Quality Management”, “Best Innovation in LogisticsManagement”, “Best Service to Suppliers”, “Renowed Trademark in the Guangdong Province”, “Leading Brand in Pharmaceutical Distribution Industry in GuangdongProvince”, etc.

Mr. Yao Chuanglong, Chairman, Executive Directorand CEO of Chuangmei, said, “Going forward, we will continue to strengthen our existing distribution network andincrease distribution capacity to improve the distribution range and operatingefficiencies to satisfy the future development needs. We will also focus on theB2B e-commerce platform development and plans to upgrade and promote theplatform so as to enhance user experience and the stability of the system andenlarge the customer base. We will continuously expand product offerings andenhance product mix to meet the market growing trend. We believe that,leveraging on our years of experience, extensive network and profound understanding of the pharmaceuticaldistribution market, we can better satisfy our clients’ diversifieddemands, improve service efficiencies and enhance the competitive position inorder to generate fruitful returns for our shareholders.”

About Charmacy Pharmaceutical Co., Ltd.

Charmacy Pharmaceutical Co.,Ltd. (stock code: 2289.HK) is one of the leading pharmaceutical distributors in Southern China; its distribution network includes Southern China and otherregions, such as Fujian Province and it distributes the products to distributorcustomers, retail pharmacy stores, and hospitals, clinics, health centers and others. Charmacy Pharmaceutical is the third largest privately-owned pharmaceutical distribution company in the Southern China in terms of revenue generated from pharmaceutical distribution business in 2014. Charmacy Pharmaceutical has a variety of product offerings including western medicines,Chinese patent medicines, healthcare products, Chinese medicine material anddecoction pieces, medical devices and cosmetic products. In June 2015, Charmacy Pharmaceutical started the pilot run of its B2B e-commerce platform and itexpects the platform will operate in full scale in the fourth quarter of 2015in order to offer a more convenient service to clients. Charmacy Pharmaceutical plans to strengthen, expand and integrate its existing distribution network and capabilities to increase distribution coverage,capacity and operating efficiencies and lower our cost and plan to upgrade and promote its B2B e-commerce platform to enhance its market position in SouthernChina.

Issued by Porda HavasInternational Finance Communications Group for and on behalf of

Charmacy Pharmaceutical Co., Ltd. For further information, please contact:

Fax: +852 3150 6728

Factsheet

Offering Summary:

Use of Proceeds:

Charmacy Pharmaceutical estimates that the aggregate net proceeds to the Company (after deductingunderwriting fees and estimatedexpenses) from the Global Offering, assuming an Offer Price of approximately HK$8.10 per H Share, being the mid-point of theindicative range of the Offer Price of HK$7.60 to HK$8.60 per H Share, will be approximately HK$240.8 million.

The company intends to use the net proceeds from the Global Offering for thefollowing purposes: -

Track Record (Audited):

Breakdown of Turnoverfrom Sales of Goods:

By Customer Types

By Product Category