China Wah Yan Healthcare : Profit Warning

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 Hong Kong with limited liability)

(Stock Code: 648)

PROFIT WARNING

This announcement is made pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions under Part XIVA of the SFO. The Board wishes to inform the shareholders and potential investors of the Company that the Group is expected to record a significant loss for the year ended 31 December 2017.

This announcement is made by China Wah Yan Healthcare Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 of The Rules (the "Listing Rules") Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").

The board (the "Board") of directors of the Company wishes to inform the shareholders and potential investors of the Company that based on the latest available unaudited financial information of the Group, the Group expects to record a significant loss for the year ended 31 December 2017. Such loss is mainly attributable to the potential loss of HK$222 million from investment in certain listed securities due to (i) decline in their market value; and (ii) potential full impairment on certain listed securities (the "Shares") the trading in which on the Stock Exchange had been suspended under the direction of the Securities and Futures Commission.

Based on the closing prices of the Shares as at their respective last trading days immediately prior to suspension, the aggregate fair value of the Shares amounted to HK$124 million and the Group would have recognised an unrealised loss of HK$37 million as at their last trading days. If the value of the Shares had been fully impaired, an impairment loss of HK$161 million (including the above-mentioned unrealised loss of HK$37 million) would be recorded by the Group for the year ended 31 December 2017.

The information contained in this announcement is the Board's preliminary assessment based on the latest available unaudited financial information of the Group as at the date of this announcement and such information has not been reviewed or audited by the Company's auditors and may be subject to changes as a result of the audit procedures of the auditors, particularly the actual amount of the impairment loss in respect of the Group's listed securities.

Shareholders and potential investors are advised to read carefully the annual results announcement of the Company for the year ended 31 December 2017, which is expected to be published on or before 31 March 2018 in accordance with the Listing Rules.

By Order of the board of directors of

China Wah Yan Healthcare Limited

Chan Ka Chung

Chairman

Hong Kong, 9 January 2018

As at the date of this announcement, the Board comprises three executive directors, namely Mr. Chan Ka Chung, Mr. Cheung Wai Kwan and Mr. Wang Jianguo; and three independent non-executive directors, namely, Mr. Chan Yee Ping, Michael, Ms. Hu Xuezhen and Mr. Lam Chun Ho.