Town Health International Medical : APPOINTMENT OF RECEIVERS PURSUANT TO A SHARE MORTGAGE IN FAVOUR OF THE GROUP

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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)

APPOINTMENT OF RECEIVERS PURSUANT TO A SHARE MORTGAGE IN FAVOUR OF THE GROUP

References are made to (i) the announcements of Town Health International Medical Group Limited (the "Company") dated 30 December 2016 and 17 March 2017 and the circular of the Company dated 23 February 2017 (the "Circular") in relation to, among other things, the Disposal and the Receipt of the Promissory Note; and (ii) the announcement of the Company dated 19 March 2021 in relation to, among other things, the impairment of the Promissory Note. Capitalised terms used herein shall have the same meanings as those defined in the said announcements, unless the context requires otherwise.

As disclosed previously, the Group was prepared to take legal actions against Profit Castle and/or Dr. Ip in respect of, among other things, their default in repaying the outstanding principal amount of the Promissory Note and all outstanding interest accrued thereon, which amounted to approximately HK$10.3 million.

On 22 April 2021, Oasis Beauty, a wholly-owned subsidiary of the Company, issued a notice of enforcement to Profit Castle to declare, among other things, that the Share Mortgage, which was executed by Profit Castle in favour of Oasis Beauty over all shares of Bonjour Beauty International Limited ("Charged Assets") for securing the repayment of the Promissory Note, is enforceable.

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In order to safeguard the interest of the Company and the Shareholders, on 23 April 2021, Oasis Beauty appointed receivers (on a joint and several basis) over the Charged Assets in accordance with the terms of the Share Mortgage created by Profit Castle in favour of Oasis Beauty.

Further announcement(s) will be made by the Company as and when appropriate.

By order of the Board

Town Health International Medical Group Limited

Jin Zhaogen

Executive Director and Chief Executive Officer

27 April 2021

As at the date of this announcement, the executive Directors are Mr. Jin Zhaogen (Chief Executive Officer) and Ms. Zhao Xiangke (Chief Financial Officer), the non-executive Directors are Mr. Zhao Hui (Chairman) and Mr. Hou Jun; and the independent non-executive Directors are Mr. Ho Kwok Wah, George, MH, Mr. Yu Xuezhong and Dr. Xu Weiguo.

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