PegBio Co., Ltd. — Share Issue/Capital Change 2017

May 19, 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.

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(Incorporated in Bermuda with limited liability)

(Stock Code: 1141)

ENTITLEMENT UNDER THE DISTRIBUTION AND DESPATCH DATE OF FW SHARES AND CSPT SHARES UNDER THE DISTRIBUTION

Reference is made to the circular of the Company dated 10 April 2017 (the “Circular”) and the announcement of the Company dated 28 April 2017 in relation to, among others, the Distribution. Unless the context requires otherwise, capitalised terms used herein shall bear the same meanings as defined in the Circular.

Based on 1,215,971,647 CSPT Shares held by the Group as at the Record Date, with reference to 18,828,757,729 Shares in issue as at the Record Date, Shareholders shall receive 645.805 CSPT Shares for every 10,000 Shares held by the Shareholders. Based on the closing price of HK$0.227 per CSPT Share as quoted on the Stock Exchange on the date of this announcement, the market value of 645.805 CSPT Shares represents approximately HK$146.60.

Based on 315,692,000 FW Shares held by the Group as at the Record Date, with reference to 18,828,757,729 Shares in issue as at the Record Date, Shareholders shall receive 167.664 FW Shares for every 10,000 Shares held by the Shareholders. Based on the closing price of HK$0.242 per FW Share as quoted on the Stock Exchange on the date of this announcement, the market value of 167.664 FW Shares represents approximately HK$40.57.

The Shareholders holding odd lots Shares will be entitled to the Distribution on prorata basis. However, if their entitlements to CSPT Shares and/or FW Shares are less than one, Distribution would be disregarded. All the entitlements will be rounded down to the nearest whole number of the CSPT Shares and/or the FW Shares where such calculation would result in fractional CSPT Shares and/or FW Shares to be distributed to a Shareholder. No fraction of a CSPT Share and/or a FW Share will be distributed.

* For identification purpose only

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Fractional entitlements to the CSPT Shares and/or the FW Shares pursuant to the Distribution will not be transferred under the Distribution but will be retained by the Group immediately after the Distribution for sale in the market. The proceeds derived therefrom will be retained for the benefits of the Group.

Despatch of share certificates and CCASS settlement

It is expected that share certificates for the relevant FW Shares and CSPT Shares will be despatched on or around 26 May 2017 by ordinary post at the risk of the Shareholders to their respective addresses shown on the register of members of the Company as at the close of business on the Record Date. The Shareholders may deal with the FW Shares and/or the CSPT Shares received under the Distribution after receipt of the relevant share certificates. In the case of a joint holding of Shares, the share certificate(s) for the FW Shares and CSPT Shares will be posted to the address of the person whose name stands first on the register of members of the Company in respect of such Shares as at the close of business on the Record Date. Investors holding Shares through CCASS Participants are expected to receive the FW Shares and CSPT Shares under the Distribution through their respective stockbrokers or custodians or through their CCASS Investor Participant stock accounts following the despatch of the share certificates of the FW Shares and CSPT Shares under the Distribution. Such investors should seek the advice of their respective stockbrokers or other professional advisers in case of doubt.

Odd Lot Arrangement

In order to alleviate the difficulties arising from the existence of odd lots of the CSPT Shares and/or the FW Shares as a result of the Distribution, the Company has appointed Skyway Securities Investment Limited as an agent to provide odd lot matching services on a best effort basis to the Shareholders who wish to top up or sell their holdings of odd lots of the FW Shares and/or the CSPT Shares to be received under the Distribution during the period from 9:00 a.m. on 26 May 2017 to 4:00 p.m. on 15 June 2017, both days inclusive. Holders of the FW Shares and/or the CSPT Shares in odd lots represented by the existing share certificates for the FW Shares and/or the CSPT Shares who wish to take advantage of this facility either to dispose of their odd lots of the FW Shares and/or the CSPT Shares or to top up their odd lots to a full new board lot may directly or through their brokers to contact Skyway Securities Investment Limited at Units 6601A and 6607-6608 on Level 66 of International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong or at telephone number (852) 2907 2300 during office hours (i.e. 9:00 a.m. to 5:00 p.m. within such period).

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Holders of the FW Shares and/or the CSPT Shares in odd lots should note that successful matching of the sale and purchase of odd lots of the FW Shares and/or the CSPT Shares is not guaranteed. The Shareholders are recommended to consult their professional advisers if they are in doubt about the above arrangement.

By Order of the Board Skyway Securities Group Limited Lin Yuehe Chairlady

Hong Kong, 19 May 2017

As at the date of this announcement, the Board comprises the following Directors:

Executive Directors: Independent Non-executive Directors: Ms. Lin Yuehe (Chairlady) Mr. Chan Kwan Pak Mr. Wang Haixiong (Chief Executive Officer) Mr. Siu Gee Tai Mr. Siu Siu Ling Robert

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