Consun Pharmaceutical Group Limited — Capital/Financing Update 2017

Nov 3, 2017

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the securities.

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(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1681)

COMPLETION OF PLACING OF NEW SHARES UNDER GENERAL MANDATE

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BNP Paribas Securities (Asia) Limited Placing Agent

Reference is made to the announcement of Consun Pharmaceutical Group Limited (the“ Company ”) dated 24 October 2017 in relation to the Placing of 43,585,680 Placing Shares at the Placing Price of HK$6.60 per Placing Share under the General Mandate (the “ Announcement ”). Unless the context requires otherwise, capitalised terms used herein shall have the same meanings as those defined in the Announcement

COMPLETION OF PLACING OF NEW SHARES UNDER THE GENERAL MANDATE

The Board is pleased to announce that all the conditions set out in the Placing Agreement have been fulfilled on 3 November 2017 and completion of the Placing took place on 3 November 2017 in accordance with the terms and conditions of the Placing Agreement. 43,585,680 Placing Shares have been successfully placed to one Placee, namely United Vantage Corporation Limited (a subsidiary of Far East Horizon Limited (HKEX stock code: 3360), which in turn is a leading innovative financial services organization with investments in different industries, including medical and healthcare), at the Placing Price of HK$6.60 per Placing Share.

To the best of the Directors’ knowledge, information and belief, and having made all reasonable enquiries, the Placee and its ultimate beneficial owners are third parties independent of, not acting in concert (as defined in the Hong Kong Code on Takeovers and Mergers) with and not connected with the Company and/or its connected persons. The Placee has not become a Substantial Shareholder of the Company immediately upon completion of the Placing.

The net proceeds from the Placing of 43,585,680 Placing Shares are approximately HK$284,439,000. It is expected that such net proceeds from the Placing will be utilised for general working capital and future investment of the Group as and when opportunities arise but no specific investment targets have been identified yet as at the date of this announcement.

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CHANGES IN THE SHAREHOLDING STRUCTURE OF THE COMPANY AS A RESULT OF THE PLACING

To the best of the Directors’ knowledge, information and belief after having made all reasonable enquiries, the shareholding structure of the Company immediately before and immediately after the completion of the Placing is set out as below:

Mr. AN and Central SuccessDevelopments Limited_(Note 1)Ms. LI and Double GraceInternational Limited(Note 2)Guidoz Limited(Note 3)_Other substantial shareholdersThe PlaceePublic ShareholdersTotal	Immediately beforeCompletion of the PlacingNo. ofsharesApproximate%205,248,81724.79%132,780,26116.03%110,050,00013.29%59,312,0007.16%––320,736,72238.73%828,127,800100.00%	Immediately afterCompletion of the PlacingNo. ofsharesApproximate%205,248,81723.55%132,780,26115.23%110,050,00012.63%59,312,0006.80%43,585,6805.00%320,736,72236.79%871,713,480100.00%

Notes:

• (1) 196,674,000 Shares are held by Central Success Developments Limited, a company directly owned by Mr. AN, an executive Director and 8,574,817 Shares are held by Mr. AN directly;

• (2) 126,915,000 Shares are held by Double Grace International Limited, a company directly owned by Ms. LI, an executive Director and 5,865,261 Shares are held by Ms. LI directly;

• (3) 110,050,000 Shares are held by Guidoz Limited, a company directly owned by Mr. YOUNG; and

• (4) As at the date of this announcement, Mr. AN and Ms. LI are holders of respectively 10,000,000 and 10,000,000 share options of the Company (the exercise of which would entitle them to subscribe for 10,000,000 and 10,000,000 Shares respectively).

By order of the Board Consun Pharmaceutical Group Limited AN Yubao Chairman

Hong Kong, 3 November 2017

As at the date of this announcement, the Board comprises Mr. AN Yubao, Ms. LI Qian and Professor ZHU Quan as executive Directors; Mr. LIN Sheng as non-executive Director; Mr. SU Yuanfu, Mr. FENG Zhongshi and Ms. CHENG Xinxin as independent non-executive Directors.

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