Beijing Enterprises Medical and Health Industry Gr : Announcements and Notices - Positive Profit Alert

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2389) POSITIVE PROFIT ALERT

This announcement is made by Beijing Enterprises Medical and Health Industry Group Limited (the "Company", together with its subsidiaries as the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) (the "SFO").

The board of directors (the "Board") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors of the Company that the Company is in the course of preparing its annual results for the year ended 31 December 2016. Based on currently available information, the Board anticipates that the Group will record a consolidated profit for the year in the Financial Year 2016, as compared with the consolidated loss for the year of approximately HK$59.90 million recorded in the Financial Year 2015.

The anticipated consolidated profit for the year is mainly arising form the rapid development of the Group's geriatric and medical segment in this financial year. The Group's geriatric and medical services have been expanded into the major cities of the PRC, including Beijing, Shanghai, Fujian, Shijiazhuang, Wuhu, Yiwu and Wuxi. The total number of service members increased by approximately 370,000 members to a total of approximately 600,000 members. The number of beds in relation to elderly-care and nursing increased by approximately 420 beds to a total of approximately 1,000 beds. The number of community and household service centres increased by approximately 93 service centres to a total of approximately 360 service centres. The profit of the medical and geriatric furniture segment nearly doubled as compared to the pre-acquisition results. At the same time, the Group's securities, funds investments and disposal of subsidiaries' equity interests also recorded considerable net profit.

The anticipated consolidated profit for the year is only a preliminarily assessed figure and may be subject to impairment of assets, changes in the fair value of investment properties, ultimate share of profits/losses of associates, adjustment of gains from the disposal of equity interests and other audit adjustment during the audit process, and eventually there may be only a small profit recorded or even a small loss.

The Company is still in the process of finalizing the consolidated annual results in the Financial Year 2016. The information contained in this announcement is only a preliminary assessment by the management of the Company based on figures and information made available to the Board as at the date hereof and is not based on any figures or information which has been reviewed by the Company's auditor. The finalized consolidated annual results of the Company and other details will be disclosed in the 2016 annual report to be published by the Company.

In order to thank the shareholders for their support, the Board shall consider to resume a dividend payment to the shareholders if a consolidated profit for the year is eventually recorded in the audited annual results in the Financial Year 2016.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

Beijing Enterprises Medical and Health Industry Group Limited Zhu Shi Xing

Chairman

Hong Kong, 9 January 2017

As at the date of this announcement, the Board comprises seven Executive Directors, namely Mr. Zhu Shi Xing, Mr. Liu Xue Heng, Mr. Gu Shan Chao, Mr. Hu Xiao Yong, Mr. Hu Shiang Chi, Mr. Wang Zheng Chun and Mr. Zhang Jing Ming; one Non-Executive Director, namely Mr. Robert Winslow Koepp and four Independent Non-Executive Directors, namely Mr. Xie Ming, Mr. Tse Man Kit, Keith, Mr. Wu Yong Xin and Mr. Gary Zhao.