Town Health International Medical Gp : Announcements and Notices -

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Town Health International Medical Group Limited ੰ਄਷ყᔼᐕණྠϞࠢʮ̡

(Incorporated in the Cayman Islands and continued in Bermuda with limited liability)

(Stock Code: 3886)

UPDATE ON PERFORMANCE OF THE

INVESTMENTS IN SECURITIES AND PROPERTIES AND

TREASURY MANAGEMENT BUSINESS SEGMENT

This announcement is made by Town Health International Medical Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to the provisions of inside information under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Stock Exchange").

The board ("Board") of directors ("Directors") of the Company would like to inform the shareholders and potential investors of the Company that, based on the information currently available to the Board, the Group is expected to record (i) a fair value loss of approximately HK$53.2 million for the year ended 31 December 2017 in respect of the Group's investment in the securities of China Parenting Network Holdings Limited, whose shares are listed on the Growth Enterprise Market of the Stock Exchange ("GEM") (Stock code: 8361), which is classified as held for trading investments in the accounts of the Company (a fair value gain of approximately HK$3.6 million was recorded for the year ended 31 December 2016); and (ii) an impairment loss of approximately HK$13.1 million for the year ended 31 December 2017 in respect of the Group's investment in NSD Capital, a fund which, to the best of the Directors' knowledge, information and belief having made all reasonable enquiry, invests in the securities of MediNet Group Limited, whose shares are listed on GEM (Stock code: 8161), which is classified as available-for-sale investments in the accounts of the Company (impairment loss of approximately HK$0.7 million was recognised for the year ended 31 December 2016). Such fair value loss and impairment loss are expected to adversely affect the performance of the business segment of investments in securities and properties and treasury management of the Group for the year ended 31 December 2017.

The Company is still in the process of finalising the annual results of the Group for the year ended 31 December 2017. The information contained in this announcement is only a preliminary assessment by the management of the Company based on figures and information made available to the Board as at the date hereof and is not based on any figures or information which has been reviewed by the Company's auditors. Finalised annual results of the Group and other details will be disclosed in the 2017 annual results announcement to be published by the Company.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Town Health International Medical Group Limited

Lee Chik Yuet

Executive Director

Hong Kong, 8 January 2018

As at the date of this announcement, the executive Directors are Miss Choi Ka Yee, Crystal (Chairperson), Dr. Cho Kwai Chee (Executive Deputy Chairman), Dr. Hui Ka Wah, Ronnie, JP (Chief Executive Officer), Mr. Lee Chik Yuet and Mr. Wong Seung Ming (Chief Financial Officer); the non-executive Directors are Dr. Choi Chee Ming, GBS, JP (Deputy Chairman),

Ms. Fang Haiyan (Deputy Chairperson), Mr. Tsai Ming-hsing (Deputy Chairman) and Mr. Chen Jinhao; and the independent non-executive Directors are Mr. Ho Kwok Wah, George, MH, Mr. Wong Tat Tung, MH, JP, Mr. Yu Xuezhong, Ms. Li Mingqin and Mr. Wang John Hong-chiun.