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)

LEGAL PROCEEDINGS AGAINST

FIRST CREDIT LIMITED

AND

FIRST CREDIT FINANCE GROUP LIMITED

Reference is made to the announcement of the Company dated 8 March 2018 ("Earlier Announcement"). Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as those defined in the Earlier Announcement.

Subsequent to the Earlier Announcement, FCL further repaid to Promising Finance a sum of HK$5,000,000 on 19 March 2018, a sum of HK$10,000,000 on 27 March 2018 and a sum of HK$5,000,000 on 6 April 2018 respectively for partial settlement of the outstanding principal in respect of the 1st Loan and interest accrued on the 1st Loan and the 2nd Loan up to and including 5 April 2018.

As at the date of this announcement, principal in respect of the 1st Loan and the 2nd Loan in the aggregate amount of HK$62,677,513.61 ("Outstanding Principal") together with interest accrued thereon since 6 April 2018 are owing by FCL to Promising Finance under the Loan Agreement and remain outstanding.

As such, on 17 April 2018, Promising Finance has initiated legal proceedings in the Court of First Instance of the High Court of Hong Kong ("Court") against FCL and FCFGL as defendants in respect of all outstanding sums owing by FCL to Promising Finance under the Loan Agreement by the issuance of a writ of summons endorsed with a statement of claim ("Writ of Summons"). According to the Writ of Summons, Promising Finance claims against FCL and FCFGL for:

• (1) the Outstanding Principal;

• (2) the outstanding legal costs in the sum of HK$20,000, being legal costs arising out of the failure of FCL and FCFGL to repay the outstanding principal in respect of the 1st Loan and the 2nd Loan and the interest accrued thereon under the Loan Agreement prior to the issuance of the Writ of Summons;

• (3) interest on the Outstanding Principal at the contractual interest rate of 5% per annum accrued from 6 April 2018 until the date of judgment;

• (4) further or alternative to relief (3) above, interest at such rate and for such period as the Court thinks fit;

• (5) costs on indemnity basis; and

• (6) further and/or other relief.

The Company will keep the shareholders of the Company and potential investors informed of any further material developments in connection with the above proceedings by way of further announcement(s) as and when appropriate.

By order of the Board

Town Health International Medical Group Limited

Lee Chik Yuet

Executive Director

Hong Kong, 17 April 2018

As at the date of this announcement, the executive Directors are Miss Choi Ka Yee, Crystal (Chairperson), 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), Mr. Chen Jinhao and Dr. Cho Kwai Chee; 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.