AK Medical : SUPPLEMENTAL ANNOUNCEMENT ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2019

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AK MEDICAL HOLDINGS LIMITED

愛康醫療控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1789)

SUPPLEMENTAL ANNOUNCEMENT

ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2019

Reference is made to (i) the annual report of AK Medical Holdings Limited (the "Company") for the year ended 31 December 2019 (the "2019 Annual Report"); and (ii) the prospectus of the Company dated 7 December 2017 (the "Prospectus"). Unless otherwise stated, capitalised terms used herein shall bear the same meanings as defined in the 2019 Annual Report and the Prospectus, respectively.

The Board would like to provide an update to the use of the proceeds from the Global Offering as supplemental information to the 2019 Annual Report, details of which are set out as follows:

USE OF PROCEEDS FROM THE GLOBAL OFFERING

					Actual Use
					of Proceeds	Balance
		Planned Use of Proceeds from the Global Offering	up to	as of	Expected
		31 December	31 December	timeline of
		as stated in the Prospectus		2019	2019	full utilisation
			Percentage				of the unutilised
			as to the				proceeds from
No.	Planned Use of Proceeds	Net Proceeds	Amount	Amount	Amount	the Global
(%)	(HK$ million)	(HK$ million)	(HK$ million)	Offering
1.	Construction of the Changzhou Facilities, and, to	41	195	191	4	On or before
	a lesser extent, upgrading the existing facilities					31 December 2020
	in Beijing and acquisition of new equipment for
	both the Changzhou Facilities and the existing
	facilities in Beijing
2.	Development and upgrade of the 3D-printed	21	100	66	34	On or before
	products and PTIP					31 December 2020

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Actual Use

of Proceeds

Balance

Planned Use of Proceeds from the Global Offering

up to

as of

Expected

31 December

31 December

timeline of

as stated in the Prospectus

2019

2019

full utilisation

Percentage

of the unutilised

as to the

proceeds from

No.

Planned Use of Proceeds

Net Proceeds

Amount

Amount

Amount

the Global

(%)

(HK$ million)

(HK$ million)

(HK$ million)

Offering

3.

Other R&D activities

15

73

68

5

On or before

31 December 2020

4.

Funding potential acquisitions and developing

15

73

73

-

N/A

strategic alliances that could complement the

existing product portfolio, technology and

business growth

5.

General corporate purposes

8

36

36

-

N/A

Total

100

477

434

43

During the two years ended 31 December 2018 and 2019, respectively, the net proceeds from the Global Offering was used in accordance with the intended purposes previously disclosed in the Prospectus and there was no material change in the use of proceeds. The unutilised amount is expected to be used in accordance with the intended purposes as disclosed in the Prospectus and stated above.

The Board confirmed that the above supplemental information does not affect other information contained in the 2019 Annual Report and, save as disclosed above, the content of the 2019 Annual Report remains accurate and unchanged.

In the event that there is any material change in the intended use of the net proceeds from the Global Offering as described in the Prospectus, the Company will make appropriate disclosure by way of an announcement in due course.

By order of the Board

AK Medical Holdings Limited

Li Zhijiang

Chairman

Beijing, 14 August 2020

As at the date of this announcement, the Board comprises Mr. Li Zhijiang, Ms. Zhang Bin, Mr. Zhang Chaoyang and Ms. Zhao Xiaohong as executive Directors, Dr. Wang David Guowei as non-executive Director, and Mr. Kong Chi Mo, Dr. Li Shu Wing David and Mr. Eric Wang, as independent non-executive Directors.

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