Town Health Medical Gp : Announcements and Notices -

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Town Health International Medical Group Limited

康健國際醫療集團有限公司

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

(Stock Code: 3886)

POSITIVE PROFIT ALERT

This announcement is made by Town Health International Medical Group Limited ("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.

The board ("Board") of directors ("Directors") of the Company would like to inform the shareholders of the Company ("Shareholders") and potential investors that, based on information currently available, the Group is expected to record an increase in the consolidated revenue of the Group for the year ended 31 December 2015 as compared with the consolidated revenue of the Group for the year ended 31 December 2014, mainly attributable to (i) revenue generated from the managed care business following the Group's acquisition of Dr. Vio & Partners Limited in September 2014; and (ii) revenue generated from the beauty and cosmetic medicine business following the Group's acquisition of Bonjour Beauty International Limited in January 2015.

The Board would also like to inform Shareholders and potential investors that, based on information currently available, the Group is expected to record an increase in the consolidated profit of the Group for the year ended 31 December 2015 as compared with the consolidated profit of the Group for the year ended 31 December 2014. Such increase was mainly attributable to (i) profit generated from the managed care business following the Group's acquisition of Dr. Vio & Partners Limited in September 2014; (ii) profit generated from the beauty and cosmetic medicine business following the Group's acquisition of Bonjour Beauty International Limited in January 2015; (iii) share of profit of Huayao Medical Group Limited which has become an associate of the Company since March 2015 and whose principal business is provision of hospital management services; (iv) the increase in gain of the Group's strategic investment in securities for the year ended 31 December 2015 mainly attributable to the total gain, which is expected to be approximately HK$307 million, comprising realised gain on disposal of held for trading investments of approximately HK$209 million and unrealised gain on fair value changes on held for trading investments of approximately HK$98 million, as compared with that for the year ended 31 December 2014 of approximately HK$20 million; and (v) the increase in interest income of the Group for the year ended 31 December 2015, as compared with that for the year ended 31 December 2014, mainly attributable to the interest income generated from the treasury management of the Group, in respect of the net proceeds received by the Group from the issue of new shares of the Company in December 2014 and May 2015 pursuant to various agreements of the Company, details of which are set out in the circulars of the Company dated 28 November 2014 and 3 February 2015 respectively.

The Company is still in the process of finalising the annual results of the Group for the year ended 31 December 2015. 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 2015 annual results announcement to be published by the Company.

Shareholders and potential investors 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, 14 January 2016

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), Dr. Ip Chun Heng, Wilson, 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. Chen Jinhao and Mr. Tsai Ming-hsing (Deputy Chairman); 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.