China Medical & HealthCare : SUPPLEMENTAL ANNOUNCEMENT IN RESPECT OF ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2018

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China Medical & HealthCare Group Limited

(Incorporated in Bermuda with limited liability)

(Stock Code: 383)

SUPPLEMENTAL ANNOUNCEMENT

IN RESPECT OF

ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2018

Reference is made to the annual report of China Medical & HealthCare Group Limited (the "Company", together with its subsidiaries, the "Group") for the year ended 30 June 2018 (the "2017/2018 Financial Year") published by the Company on 31 October 2018 (the "2017/2018 Annual Report"). Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as those defined in the 2017/2018 Annual Report.

The board of directors of the Company (the "Board") would like to provide supplemental information on the 2017/2018 Annual Report in relation to the amounts of proceeds (the "Proceeds") used from the Subscription as below.

		Proceeds	Proceeds	Remaining
		used in	used in the	balance of the	Expected
		previous	2017/2018	Proceeds	utilisation of
		financial	Financial	as at	the remaining
Intended use of the Proceeds	years	Year	30 June 2018	Proceeds
		HK$'000	HK$'000	HK$'000	HK$'000
i.	An amount of approximately HK$600,000,000 will	228,102	102,839	269,059	118,802
	be used for working capital and for expansion of				(to be used by
	the Group's hospital and healthcare, and aged care				30 June 2019)
	businesses				and 150,257
					(to be used
					on or before
					30 June 2021)

1. The remaining balance of approximately
   HK$299,250,000 will be used for reduction of the

Group's borrowings	299,250		-	-		-
Total	527,352		102,839		269,059		269,059

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The detailed breakdown of net Proceeds used during the 2017/2018 Financial Year is as follows:-

		Proceeds
		used in
	the 2017/2018
	Financial Year
		HK$'000
For the construction cost of Block D of Nanjing Tongren Hospital	40,442
Settled part of the acquisition costs of 30% equity interest of Aveo China	30,000
For the purchase and improvement of medical and healthcare equipment	32,397
Total
102,839

The remaining unutilised Proceeds of approximately HK$269,059,000 brought forward to the following financial years is expected to be used as intended for working capital and for expansion of the Group's hospital and healthcare, and aged care businesses such as for the settlement of the construction cost of Block D of Nanjing Tongren Hospital; settlement of the balance of the acquisition costs of 30% equity interest of Aveo China; and for purchase and improvement of medical and healthcare equipment.

Save as disclosed above, all other information and content set out in the 2017/2018 Annual Report remain unchanged. This announcement is supplemental to and should be read in conjunction with the 2017/2018 Annual Report. As at 30 June 2019, approximately HK$118,802,000 of the unutilised Proceeds has been used as intended for the twelve month ended 30 June 2019.

By Order of the Board

China Medical & HealthCare Group Limited

Zhou Liye

Chairman

Hong Kong, 10 October 2019

As at the date of this announcement, the Board comprises:-

Executive Directors

Ms. Chong Sok Un (Deputy Chairman), Mr. Kong Muk Yin, Mr. Guo Meibao and Mr. Zhou Haiying

Non-Executive Directors

Mr. Zhou Liye (Chairman), Dato' Wong Peng Chong, and Mr. Ma Jianting

Independent Non-Executive Directors

Mr. Zhang Jian, Dr. Xia Xiaoning, Dr. Wong Wing Kuen, Albert and Ms. Yang Lai Sum, Lisa

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