Yestar Healthcare Holdings Company Limited announced that since the COVID-19 pandemic in 2020, the Group's business performance has been severely impacted due to rounds of regional lock-downs and continuous quarantine measures in the PRC, especially the large-scale lock down in Shanghai in the first half of 2022, which seriously hindered the regular services of hospitals and medical clinics. The Group continues to be faced with major liquidity constraints due to its disrupted operation and cashflow generation. Under the indenture governing the New Senior Notes, the Company is due to redeem 5% of the original principal amount of the New Senior Notes by 30 December 2022.

The Company did not redeem any of the New Senior Notes as at the date of this announcement. In addition, the interest on the New Senior Notes became due and payable on 30 December 2022. Under the indenture governing the New Senior Notes, the Company has a grace period of 30 days to make the interest payment.

As at the date of this announcement, the Company does not expect that it would have the liquidity to make such interest payment prior to the end of the grace period. The Company is in the process of assessing its liquidity position, its overall business operation and operating environment, and actively exploring potential resolutions in easing its liquidity concerns. The Company is proactively engaged in dialogues with major holders of its New Senior Notes with a view to exploring and implementing potential ways to address its liquidity issue, and to reach a consensual solution to best protect the interests of all its stakeholders.

Further announcement will be made by the Company in relation to the progress of any significant business updates as and when appropriate.