Beijing Enterprises Medical and Health Industry : DISCLOSEABLE TRANSACTION - PURCHASE OF STRUCTURED DEPOSIT

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited 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.

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2389)

DISCLOSEABLE TRANSACTION PURCHASE OF STRUCTURED DEPOSIT

PURCHASE OF STRUCTURED DEPOSIT

On 26 March 2021, Lugang International entered into the Lugang Structured Deposit Agreement with Bank of Beijing, pursuant to which Lugang International agreed to purchase structured deposit of RMB75 million using internal resources.

LISTING RULES IMPLICATIONS

As one of the applicable percentage ratio (as calculated under Rule 14.07 of the Listing Rules) in respect of the Lugang Structured Deposit Agreement exceeds 5% but all of the applicable percentage ratios are less than 25%, the purchase of structured deposit under the Lugang Structured Deposit Agreement as mentioned above constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is subject to the notification and announcement requirements under the Listing Rules.

BACKGROUND

The Board announced that on 26 March 2021, Lugang International entered into the Lugang Structured Deposit Agreement with Bank of Beijing, pursuant to which Lugang International agreed to purchase structured deposit of RMB75 million using internal resources.

THE LUGANG STRUCTURED DEPOSIT AGREEMENT

The principal terms of the Lugang Structured Deposit Agreement are set out as follows:

(1)	Date of subscription:
(2)	Parties:
(3)	Name of the product:	Entity-targeted Structural Deposits (ఊЗഐ࿴׌πಛ)
(4)	Type of return:	Principal-guaranteed with variable return
(5)	Subscription amount	RMB75 million (equivalent to approximately HK$89.25
(i.e. the principal	million)
amount):
(6)	Term of deposits:	From 29 March 2021 (inclusive) to 29 June 2021 (exclusive)
(92 days)
(7)	Product linked and	3-month USD LIBOR
expected annualised
rate of return:	The expected annualised rate of return is 1.35% to 3.00%.
(8)	Principle for calculation	Bank of Beijing shall provide Lugang International with full
of return and interest:	coverage for the principal amount, and pay Lugang
International the return that it is entitled to (if any) based on
the price performance of the linked product in accordance
with the relevant provisions as stipulated in the Structured
Deposits Agreement.
(9)	Right of early	Lugang International has no right of early termination
termination:	(redemption) for this product.
-2-

26 March 2021

• (i) Bank of Beijing

• (ii) Lugang International

Bank of Beijing has the right to the early termination of this product and the Structured Deposits Agreement according to the actual operational situation. Bank of Beijing shall notify Lugang International at least 1 Business Day prior to the date of early termination by way of a notification published on its official website or business networks or sent to the correspondence address of Lugang International.

(10) Payment of principal and return:

The principal shall be paid on the maturity date of the structured deposits and the return on the structured deposits (if any) shall be paid on the third Business Day after the maturity date of the structured deposits.

INFORMATION ON THE PARTIES

The Company is an investment holding company and the Group is principally engaged in provision of medical care, health care and geriatric care related services and products.

Lugang International is a non-wholly owned subsidiary of the Company and is principally engaged in property development.

Bank of Beijing is a licensed bank in the PRC and a joint stock company established under the laws of the PRC, which provides corporate and personal banking business, treasury business, finance leasing, asset management and other financial services in the PRC. Its shares are listed on the Shanghai Stock Exchange (stock code: 601169). To the best of the Directors' knowledge, information and belief having made all reasonable enquiry, Bank of Beijing and its ultimate beneficial owner(s) are third parties independent of the Company and its connected persons.

REASONS FOR AND BENEFITS OF THE PURCHASE OF STRUCTURED DEPOSIT

The reasonable and efficient use of temporary idle funds will enhance the overall capital gain of the Company, which is consistent with the core objectives of the Company to ensure capital safety and liquidity. The impact of risk factors on the expected rates of return of the Lugang Structured Deposit Agreements is low, but the Group could get a higher return as compared with fixed term deposit in commercial banks in the PRC.

The Directors consider that the terms of the Lugang Structured Deposit Agreement and the transactions contemplated thereunder are fair and reasonable, on normal commercial terms or better and in the ordinary course of business of the Group, and are in the interests of the Company and its shareholders as a whole.

LISTING RULES IMPLICATIONS

As one of the applicable percentage ratio (as calculated under Rule 14.07 of the Listing Rules) in respect of the Lugang Structured Deposit Agreement exceeds 5% but all of the applicable percentage ratios are less than 25%, the purchase of structured deposit under the Lugang Structured Deposit Agreement as mentioned above constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is subject to the notification and announcement requirements under the Listing Rules.

DEFINITIONS

Unless the context otherwise requires, the following terms used herein have the following meanings:

"3-month USD LIBOR"

an indicative average interest rate at which a selection of banks in London are prepared to lend to one another in US dollars with a maturity of three months

"Bank of Beijing"

Bank of Beijing Co., Ltd. (̏ԯვБٰ΅Ϟࠢʮ̡), a joint stock company incorporated in the PRC with limited liability and a licensed bank in the PRC, the shares of which are listed on the Shanghai Stock Exchange (stock code: 601169)

"Board" the board of Directors

"Business Day"

a day on which Bank of Beijing is generally open for normal banking business to the public and which is not a Saturday, Sunday or public holiday in the PRC (but including the working Saturdays and Sundays as temporality stipulated by the State)

"Company"

Beijing Enterprises Medical and Health Industry Group Limited ̏છᔼᐕ਄ੰପุණྠϞࠢʮ̡, a company incorporated in Cayman Islands with limited liability and the shares of which are listed on the Main Board of the Stock

Exchange (stock code: 2389)

"connected person"	has the meaning ascribed to it in the Listing Rules
"Directors"	the director(s) of the Company
"Group"	the Company and its subsidiaries from time to time
"HK$"	Hong Kong dollar, the lawful currency of Hong Kong
"Hong Kong"	the Hong Kong Special Administrative Region of the
People's Republic of China
"Listing Rules"	the Rules Governing the Listing of Securities on the Stock
Exchange
"Lugang International"	Beijing Lugang International Logistic Co., Ltd.* (̏ԯ௔ಥ
਷ყيݴϞࠢʮ̡), a company established in the PRC with
limited liability and is a non-wholly owned subsidiary of the
Company
"Lugang Structured Deposit	the structured deposit agreement entered into between
Agreement"	Lugang International and Bank of Beijing dated 26 March
2021 in relation to the purchase of structured deposit
"PRC"	the People's Republic of China, and for the purpose of this
announcement only, excluding Hong Kong Special
Administrative Region, the Macau Special Administrative
Region and Taiwan
"RMB"	Renminbi, the lawful currency of the PRC
"Shareholder(s)"	shareholder(s) of the Company
"Stock Exchange"	The Stock Exchange of Hong Kong Limited
-5-
"USD"	United States dollars, the lawful currency of the United
States of America
"%"	per cent.
Hong Kong, 26 March 2021

By Order of the Board

Beijing Enterprises Medical and Health

Industry Group Limited

Zhu Shi Xing

Chairman

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. Siu Kin Wai, Mr. Hu Shiang Chi, Mr. Wang Zheng Chun and Mr. Zhang Jing Ming and five independent non-executive Directors, namely Mr. Robert Winslow Koepp, Mr. Gary Zhao, Mr. Tse Man Kit, Keith, Mr. Wu Yong Xin and Mr. Zhang Yun Zhou.

*

For identification purpose only