China Health : ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

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.

CHINA HEALTH GROUP INC.

中 國 醫 療 集 團有 限 公 司

(Carrying on business in Hong Kong as "萬全醫療集團")

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 08225)

ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED

31 DECEMBER 2021

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 (the "Directors") of China Health Group Inc. (the "Company" and together with its subsidiaries, the "Group") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to China Health Group Inc. The Directors, having made all reasonable enquires, confirm that, to the best of their knowledge and belief: (1) the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive; (2) there are no other matters the omission of which would make any statement in this announcement herein or this announcement misleading; and (3) all opinions expressed in this announcement have been arrived at after due and careful consideration and are found on bases and assumptions that are fair and reasonable.

HIGHLIGHTS

1. The Group recorded a consolidated turnover of approximately RMB83,601,000 for the year ended 31 December 2021 (the "Year"), which represents approximately 0.65% increase from approximately RMB83,063,000 for the year ended 31 December 2020.

2. The Group recorded a profit before taxation of approximately RMB42,521,000 for the Year, which represents approximately 39.9% decrease from approximately RMB70,796,000 for the year ended 31 December 2020.

3. The Group recorded an operating cash outflow before tax paid of approximately RMB6,616,000 for the Year, as compared with operating cash inflow before tax paid of approximately RMB20,619,000 in year 2020.

4. The basic and diluted earnings per share are RMB3.65 cents in 2021, while basic and diluted earnings per share were RMB6.10 cents and RMB6.08 cents respectively in year 2020.

The board of Directors of the Company (the "Board") is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively the " Group " ) for the year ended 31 December 2021 together with the comparative audited figures for the year ended 31 December 2020 as follows:

CHINA HEALTH GROUP INC.

中國醫療集團有限公司

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes	2021	2020
RMB'000	RMB'000
REVENUE	5	83,601	83,063
Cost of services	(19,744)	(16,104)
Other income	6	431	303
Administrative expenses	(14,433)	(3,600)
Staff costs	(7,337)	(8,288)
PROFIT FROM OPERATIONS	42,518	55,374
Finance costs	7(a)	(15)	(163)
Gain on disposal of subsidiaries	28	18	15,585
PROFIT BEFORE TAXATION	7	42,521	70,796
Income tax	10	(6,196)	(10,146)
PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE
YEAR	36,325	60,650
PROFIT AND TOTAL COMPREHENSIVE INCOME
FOR THE YEAR ATTRIBUTABLE TO:
Owners of the Company	36,325	60,650
36,325	60,650
EARNINGS PER SHARE (RMB cents)	11
- Basic	3.65	6.10
- Diluted	3.65	6.08

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CHINA HEALTH GROUP INC.

中國醫療集團有限公司

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021

Notes	2021	2020
RMB'000	RMB'000
NON-CURRENT ASSETS
Property, plant and equipment	13	1,550	1,751
Right-of-use assets	14	-	-
1,550	1,751
CURRENT ASSETS
Investments at fair value through profit or loss	16	5,660	12,160
Contract costs	17	24,481	24,800
Trade and bills receivables	18	128,513	86,056
Trade deposit paid	19	1,800	1,800
Prepayments, deposits and other receivables	20	24,742	17,135
Cash and cash equivalents	11,364	16,193
196,560	158,144
CURRENT LIABILITIES
Trade payables, other payables and accrued charges	21	19,009	18,594
Contract liabilities	17	1,014	1,161
Lease liabilities	-	-
Tax payable	22,515	19,965
Bank borrowings	22	-	1,500
42,538	41,220
NET CURRENT ASSETS	154,022	116,924
TOTAL ASSETS LESS CURRENT LIABILITIES	155,572	118,675
NON-CURRENT LIABILITIES
Lease liabilities	-	-
-	-
NET ASSETS	155,572	118,675
EQUITY
Equity attributable to owners of the Company
Issued capital	23	88,906	88,906
Reserves	23	66,666	29,769
Total equity	155,572	118,675
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CHINA HEALTH GROUP INC.

中國醫療集團有限公司

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2021

Issued	Share	payment	Special	Capital	Statutory
capital	premium *	reserve *	reserve *	reserve *	reserve *
RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000
At 1 January 2020	88,673	-	2,894	6,039	6,231	12,738
Profit and total comprehensive income for the
year	-	-	-	-	-	-
Cancellation/Lapse of share options	-	-	(31)	-	-	-
Shares issued upon exercise of share options	233	1,402	(590)	-	-	-
Appropriations	-	-	-	-	-	6,813
At 31 December 2020	88,906	1,402	2,273	6,039	6,231	19,551
At 1 January 2021	88,906	1,402	2,273	6,039	6,231	19,551
Profit and total comprehensive income for the
year	-	-	-	-	-	-
Share-based payment	-	-	572	-	-	-
Appropriations	-	-	-	-	-	4,110
At 31 December 2021	88,906	1,402	2,845	6,039	6,231	23,661

Attributable to owners of the Company
Statutory
Share-based	enterprise
expansion	Accumulated	Total
fund *	(losses)/profits *	equity
RMB'000	RMB'000	RMB'000
6,986	(66,581)	56,980
-	60,650	60,650
-	31	-
-	-	1,045
-	(6,813)	-
6,986	(12,713)	118,675
6,986	(12,713)	118,675
-	36,325	36,325
-	-	572
-	(4,110)	-
6,986	19,502	155,572

*These reserve accounts comprise the consolidated reserves in the consolidated statement of financial position.

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