Beijing Enterprises Medical and Health Industry Gr : Announcements and Notices - Supplemental Announcement - Discloseable Transaction in Relation to the Equity Transfer and Capital Increase in the Target Company

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2389)

SUPPLEMENTAL ANNOUNCEMENT DISCLOSEABLE TRANSACTION IN RELATION TO THE EQUITY TRANSFER AND CAPITAL INCREASE

IN THE TARGET COMPANY

Reference is made to the announcement of Beijing Enterprises Medical and Health Industry Group Limited (the "Company") dated 26 September 2018 (the "Announcement") in relation to, among other things, the discloseable transaction in relation to the Equity Transfer and the Capital Increase. Unless otherwise stated, capitalised terms used in this announcement have the same meanings as defined in the Announcement.

The Company wishes to provide the shareholders and potential investors of the Company additional information in relation to the Equity Transfer as follows:

According to the Agreement, the cash assets refer to the cash and bank balances, deposits and other receivables of the Target Company which are confirmed by the Transferee (the "Cash Assets"). The liabilities refer to the liabilities in the Balance Sheet including any unpaid tax, payables to third parties (including but not limited to unpaid construction costs, outstanding bank loans and interests and the loans and interests due to the related party of the Transferor), fines and penalties (the "Liabilities").

According to the unaudited management accounts of the Target Company as at 26 September 2018 prepared on a basis consistent with the PRC Financial Reporting Standards, the Liabilities were approximately RMB181,711,000 and the Cash Assets were approximately RMB276,000. It is estimated that the Consideration will be adjusted by approximately RMB145,150,000 being 80% of the difference between the Liabilities and the Cash Assets.

The unaudited net book value representing 80% equity interest of the Target Company as at 30 June 2018 was approximately RMB95,821,000.

By Order of the Board of Beijing Enterprises Medical and Health

Industry Group Limited

Zhu Shi Xing

Chairman

Hong Kong, 19 October 2018

As at the date of this announcement, the Board comprises nine Executive Directors, namely Mr. Zhu Shi Xing, Mr. Qian Xu, Mr. Liu Xue Heng, Mr. Gu Shan Chao, Mr. Siu Kin Wai, Mr. Hu Yebi, Mr. Hu Shiang Chi, Mr. Wang Zheng Chun and Mr. Zhang Jing Ming; and five Independent Non-Executive Directors, namely Mr. Gary Zhao, Mr. Tse Man Kit, Keith, Mr.

Wu Yong Xin, Mr. Robert Winslow Koepp and Mr. Zhang Yun Zhou.