【For Immediate Release】

中國神威藥業集團有限公司

China Shineway Pharmaceutical Group Limited （Stock Code: 2877）

Production capacity of Shineway's TCM formula granule
has been expanded by 100%

(Hong Kong, 20 December 2017) ---- The largest Chinese medicine injections, soft capsules and granules manufacturer in PRC, China Shineway Pharmaceutical Group Limited, and collectively with its subsidiaries ("China Shineway") (SEHK stock code: 2877) today told investors in a monthly newsflash the following:

1. Shineway's annual production capacity of TCM formula granule has been expanded from 300 million bags (gram) to 600 million bags (gram). Our next target is to complete the renovation of production premises by the end of April 2018 to cater for a maximum of annual production capacity of 2 billion bags (gram) upon installation of additional production equipment. Currently, Shineway's sales network of TCM formula granule is covering more than 100 TCM hospitals in the Hebei Province. A total of 120 units of TCM formula granule dispensing machines have been installed in these hospitals, presenting an average of 1.2 machines per such TCM hospital, to cater for the sales more than 600 kinds of Shineway's TCM formula granules which are exclusively included in the Drugs Reimbursement List of Hebei Province. Currently, almost all sales of Shineway's TCM formula granules has been made through such 100 plus TCM hospitals in the Hebei Province. For 2018, Shineway's TCM formula granule is expected to enter into TCM hospitals of a number of other targeted provinces, while also aggressively developing grass root medical markets.

2. Shineway's Huo Xiang Zheng Qi Soft Capsule has recorded an 18% increase in sales for the first 11th months of 2017. The product is mainly used for the prevention and treatment of heat stroke, stomach-ache, nausea and diarrhoea, acclimatization sickness. It is listed in the National Drug Reimbursement List Category B. Shineway's Huo Xiang Zheng Qi Soft Capsule covers the pungent smell of the drug ingredients, making it much easier to be taken by all kinds of people. Its active ingredients are in oil distributed liquid form catered to enhance direct absorption with quick and high bioavailability. The soft capsule format overcomes many shortcomings of traditional formulation, together with other key characteristics such as good appearance, easy to carry and take, and accurate dosage etc. It is one of the key oral-type products possessed with core competitiveness nurturing by Shineway.

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About China Shineway Pharmaceutical Group Limited (Stock Code: 2877)

China Shineway Pharmaceutical Group Limited is one of the largest modern Chinese medicines manufacturers in the PRC. The Group is listed on the Main Board of Hong Kong Stock Exchange and is also a Hang Seng Composite Index constituent.

Media Contact:

China Shineway Pharmaceutical Group Limited
Mr. Randy Hung │ Tel: (852) 3521-0816 │ randyhung@shineway.com.hk