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 28 April 2021, Lugang International entered into the Lugang Structured Deposit Agreement with SPD Bank, pursuant to which Lugang International agreed to purchase structured deposit of RMB40 million using internal resources.

LISTING RULES IMPLICATIONS

As more than one of the applicable percentage ratios (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 28 April 2021, Lugang International entered into the Lugang Structured Deposit Agreement with SPD Bank, pursuant to which Lugang International agreed to purchase structured deposit of RMB40 million using internal resources.

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THE LUGANG STRUCTURED DEPOSIT AGREEMENT

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

(1)	Date of subscription:	28 April 2021
(2)	Parties:	(i)	SPD Bank
		(ii)	Lugang International
(3)	Name of the product:	SPD Bank Li Duo Duo Stable Profit RMB-denominated
		Structured Deposit Company Product 21JG6077* (上海浦東
		發展銀行利多多公司穩利21JG6077期人民幣對公結構性存
		款)
(4)	Type of return:	Principal-guaranteed with variable return
(5)	Subscription amount:	RMB40 million (equivalent to approximately HK$48
		million). The Board believes that the consideration of such
		subscription was determined on the basis of arm's length
		commercial terms.
(6)	Term of deposits:	From 30 April 2021 (inclusive) to 31 May 2021
(7)	Product linked and	Pegging indicator:	EUR/USD rate set by BFIX:
	expected annualized			Bloomberg FX Fixings
	rate of return:
		Initial price:	Current rate of EUR/USD at 10 a.m.
				(Beijing time) published under the
				"EUR CURNCY BFIX" on the
				Bloomberg's website on 6 May 2021

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		Observed price:	Current rate of EUR/USD at 10 a.m.
			(Beijing time) published under the
			"EUR CURNCY BFIX" on the
			Bloomberg's website on 26 May 2021
		The expected rate of return will be 1.40% if the observed
		price is less than 96% of the initial price;
		The expected rate of return will be 2.95% if the observed
		price is higher than or equal to 96% of the initial price but
		less than 103.3% of the initial price; and
		The expected rate of return will be 3.15% if the observed
		price is higher than or equal to 103.3% of the initial price.
(8)	Principle for calculation	Daily rate of return = annual rate of return/360; 30 days per
	of return and interest:	month and 360 days per year; actual return is calculated
		based on simple interest
(9)	Right of early	The customers have no right of early termination
	termination:	(redemption) for this product
		SPD Bank has the right to early terminate this product
		according to the actual investment situation without further
		notice to the customers, provided that it shall publish an
		information announcement at its business outlets or
		websites or in other means within 2 working days before the
		date of early termination
(10)	Payment of principal	The principal and the return of the investment will be paid
	and return:	on the maturity date of the investment. If the date is a
		holiday, it shall be postponed to the next working day, and
		the investment term shall also be extended accordingly

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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.

SPD Bank 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: 600000). To the best of the Directors' knowledge, information and belief, SPD Bank and its ultimate beneficial owners are 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 more than one of the applicable percentage ratios (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.

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DEFINITIONS

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

"Board"	the board of Directors
"Company"	Beijing Enterprises Medical and Health Industry Group
	Limited 北控醫療健康產業集團有限公司, 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
"London Working Day(s)"	a day on which licensed banks are generally open for
	business in London throughout their normal business hours
"Lugang International"	Beijing Lugang International Logistic Co., Ltd.* (北京陸港
	國際物流有限公司), 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 SPD Bank dated 28 April 2021 in
	relation to the purchase of structured deposit

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"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
"SPD Bank"	Shanghai Pudong Development Bank Co., Ltd., a joint stock
	company incorporated in the PRC with limited liability and
	a licensed bank in the PRC. Its shares are listed on the
	Shanghai Stock Exchange (stock code: 600000)
"Stock Exchange"	The Stock Exchange of Hong Kong Limited
"%"	per cent.
	By Order of the Board
	Beijing Enterprises Medical and Health
	Industry Group Limited
	Zhu Shi Xing
	Chairman
Hong Kong, 28 April 2021

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

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