China Grand Pharmaceutical and Healthcare : Announcements and Notices - Possible Acquisition of Shares of the Company by Employees

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China Grand Pharmaceutical and Healthcare Holdings Limited

遠大醫藥健康控股有限公司*

(incorporated in Bermuda with limited liability)

(Stock Code: 00512)

POSSIBLE ACQUISITION OF SHARES OF THE COMPANY BY

EMPLOYEES

This announcement is made by the board of directors (the "Board") of China Grand Pharmaceutical and Healthcare Holdings Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis.

The Company has been notified by certain employees of the subsidiaries of the Company that they intended to acquire shares of the Company (the "Shares") from the secondary market during the period of 3 months from the date of this announcement, and the aggregated funds to be applied would be not more than HK$50,000,000.

To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, other than being employees of the Group, those employees are not directors of the Company or its subsidiaries, and are third parties independent of the Company and its connected persons (as defined in the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited), and the aggregated funds to be applied are all their own resources.

The Company appreciated the confidence from those employees on the future development prospects of the Group, and their endorsement on the long term investment value of the Company.

The Company has reminded those employees to deal in the Shares in accordance with the relevant laws and regulations.

The aforesaid possible acquisition of Shares will be made at the discretion of the relevant employees of the Group. There is no assurance of the timing, quantity or price at which the aforesaid acquisition of Shares will be made or whether they will be carried out at all. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Shares.

By order of the Board China Grand Pharmaceutical and

Healthcare Holdings Limited

Liu Chengwei

Chairman

Hong Kong, 13 January 2019

As at the date of this announcement, the Board comprises four executive directors, namely, Mr. Liu Chengwei, Mr. Hu Bo, Dr. Shao Yan and Dr. Niu Zhanqi and three independent non-executive directors, namely, Ms. So Tosi Wan, Winnie, Dr. Pei Geng and Mr. Hu Yebi.

* For identification purpose only