AID Life Science : 3RD QUARTERLY RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2018

AID Life Science Holdings Limited ( 䁩ʾ͛ն߅ኪછٰϞࠢʮ̡ )*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8088)

3RD QUARTERLY RESULTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2018

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange 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.

This announcement, for which the directors of the Company collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange for the purpose of giving information with regard to the Company. The directors of the Company, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief (i) the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive; and (ii) there are no other matters the omission of which would make any statement in this announcement misleading.

* For identification purpose only

ABOUT AID LIFE SCIENCE HOLDINGS LIMITED

AID Life Science Holdings Limited (the "Company" and, together with its subsidiaries, the "Group") is a strategic investment group listed on GEM (stock code: 8088).

The Group is principally engaged in the business of strategic investment.

MANAGEMENT DISCUSSION AND ANALYSIS

During the nine months under review, the Group continued to operate its strategic investment and asset management businesses. As part of the strategic investment business, the Group continued to monitor and strive to maximise the value of its strategic investments including, among others, (i) the development and operations of mobile/online games and mobile game distribution and publishing platform through its subsidiaries, Complete Star Limited and its subsidiary and Honestway Global Group Limited ("HGGL") and its subsidiaries; (ii) in Korea in the Korean pop music production and artist management business; (iii) in Japan in the online platform for private lodging in Japan business; (iv) in the United States of America for the businesses of robotics, pioneering autonomous mobility and a consumer focused website built around user-generated content about popular culture; (v) in the People's Republic of China in the development and operation of electric vehicle charging pile facility; (vi) in the movie distribution, artist management, cinema operations and HMV retail business through its shareholding in HMV Digital China Group Limited (stock code: 8078) ("HMV Digit China"); and (vii) the development in advanced personal molecular diagnostic services for cancer evaluation and cure through its subsidiary, GeneSort Ltd.

DISPOSAL OF AID PARTNERS ASSET MANAGEMENT LIMITED ("AIDPAML")

On 8 January 2018, the Group entered into a sale and purchase agreement with an independent third party (the "Purchaser"), pursuant to which the Group has conditionally agreed to sell and the Purchaser has conditionally agreed to purchase the entire issued capital of AIDPAML, a wholly-owned subsidiary of the Group, for a cash consideration of approximately HK$5.9 million. AIDPAML is principally engaged in provision of investment advisory and asset management services. The disposal of AIDPAML was completed on 5 September 2018. A gain on the disposal of AIDPAML of approximately HK$5.7 million was recognised in profit or loss for the nine months ended 30 September 2018.

FINANCIAL REVIEW

Revenue for the nine months under review decreased to HK$9.0 million from HK$23.6 million for the corresponding period last year, while total operating expenses (being selling and distribution expenses, administrative expenses and other operating expenses) for the nine months under review decreased to HK$80.0 million from HK$115.5 million for the corresponding period last year.

Fair value loss on financial assets at fair value through profit or loss of HK$27.6 million was recognised for the nine months under review, while fair value loss of HK$57.3 million was recognised for the corresponding period last year. The decrease in fair value loss was mainly attributable to the unrealised fair value gain of HK$82.8 million recognised as a result of fair value change of a financial asset at fair value through profit or loss during the nine months under review.

Other net income for the nine months under review decreased to HK$11.0 million from HK$45.7 million for the corresponding period last year, which was mainly due to a gain on deemed disposal of interest in an associate of HK$31.8 million was recognised for the corresponding period last year, while no such gain was recognised for the nine months under review.

Finance costs for the nine months under review increased to HK$10.6 million from HK$9.9 million for the corresponding period of last year, mainly represent the effective interest expense of the convertible bonds with principal amount of HK$140 million.

Subsequent to the reclassification of interest in an associate to an investment on 28 June 2017, fair value loss on reclassification of interest in an associate to financial assets at fair value through profit or loss of HK$286.9 million and share of results of associates of HK$2.3 million were recognised in profit or loss in the corresponding period last year, whereas no such fair value loss and share of results of associates for the nine months under review.

As a result, the Group reported a loss attributable to owners of the Company for the nine months under review of HK$93.6 million as compared to HK$393.4 million for the corresponding period last year.

The Group will continue to (i) seize good opportunities from the potential fast growing specialised industry of health technology; (ii) monitor and maximise the value of our investments; and (iii) seek for potential strategic investment and divestment opportunities with the objective to enhance the return to its shareholders.

RESULTS

The board (the "Board") of directors (the "Director(s)") of the Company announces the unaudited consolidated results of the Group for the nine months and three months ended 30 September 2018, together with the comparative unaudited figures of the corresponding periods in 2017, as follows:

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the nine months and three months ended 30 September 2018

Unaudited	Unaudited
Nine months ended	Three months ended
30 September	30 September
2018 2017	2018 2017

Notes	HK$'000	HK$'000	HK$'000	HK$'000
Revenue	3	9,029	23,583	2,190	7,446
Cost of sales	(4,377)	(15,666)	(1,048)	(5,161)
Gross profit	4,652	7,917	1,142	2,285
Fair value (loss)/gain on financial assets
at fair value through profit or loss	(27,600)	(57,267)	30,291	(77,043)
Loss on disposal of financial assets
at fair value through profit or loss	(2,171)	-	(60)	-
Gain on disposal of subsidiaries	8	5,732	30,934	5,732	-
(Loss)/gain on reclassification of interest
in an associate to an investment	-	(286,925)	-	7,295
Other net income	3	10,981	45,745	3,559	8,328
Selling and distribution expenses	(405)	(3,034)	(114)	(744)
Administrative expenses	(74,608)	(112,511)	(22,566)	(39,626)
Impairment of intangible assets	(1,940)	(17,658)	(1,940)	-
Other operating expenses	(5,000)	-	(5,000)	-
(Loss)/profit from operations	(90,359)	(392,799)	11,044	(99,505)
Finance costs	(10,641)	(9,937)	(3,734)	(3,731)
Share of results of associates,
net of tax	-	(2,313)	-	(10,365)
(Loss)/profit before taxation	(101,000)	(405,049)	7,310	(113,601)
Taxation credit	4	1,472	5,312	227	668
(Loss)/profit for the period	(99,528)	(399,737)	7,537	(112,933)
Attributable to:
Owners of the Company	(93,555)	(393,412)	10,223	(111,929)
Non-controlling interests	(5,973)	(6,325)	(2,686)	(1,004)
(Loss)/profit for the period	(99,528)	(399,737)	7,537	(112,933)
(Loss)/earnings per share attributable to
owners of the Company for the period	5	HK cents	HK cents	HK cents	HK cents
Basic	(0.87)	(4.05)	0.09	(1.06)
Diluted	N/A	N/A	N/A	N/A

UNAUDITED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME For the nine months and three months ended 30 September 2018

(Loss)/profit for the period

Other comprehensive income: Items that may be reclassified subsequently to profit or loss:

Exchange differences on translation of foreign operations

Share of other comprehensive income of

an associate

Reclassification to profit or loss on derecognition of interest in an associate

Unaudited	Unaudited
Nine months ended	Three months ended
30 September	30 September
2018 2017	2018 2017
HK$'000 HK$'000	HK$'000 HK$'000

7,537

• (99,528) (399,737)

(2,654)

- -

(112,933)

3,116

(1,847) 1,252

297 - (59)

899 - 59

Other comprehensive income for the period, net of tax

(2,654)

4,312

(1,847) 1,252

Total comprehensive income for the period, before and net of tax

Attributable to:

Owners of the Company Non-controlling interests

(102,182)

(96,172) (6,010)

(395,425)

(389,047)

(6,378)

5,690 (111,681)

8,415 (110,617) (2,725) (1,064)

Total comprehensive income for the period, before and net of tax

(102,182)

(395,425)

5,690 (111,681)