China Medical & HealthCare : (1) UPDATE ANNOUNCEMENT ON MMT PROCEEDINGS (2) DISQUALIFICATION OF AN EXECUTIVE DIRECTOR AND A NON-EXECUTIVE DIRECTOR (3) CHANGE OF MEMBERS OF THE BOARD COMMITTEES (4) CHANGE OF AUTHORISED REPRESENTATIVES

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

China Medical & HealthCare Group Limited

(Incorporated in Bermuda with limited liability)

(Stock Code: 383)

1. 1. UPDATE ANNOUNCEMENT ON MMT PROCEEDINGS
2. DISQUALIFICATION OF AN EXECUTIVE DIRECTOR AND A NON- EXECUTIVE DIRECTOR
3. 1. CHANGE OF MEMBERS OF THE BOARD COMMITTEES
   2. CHANGE OF AUTHORISED REPRESENTATIVES

This announcement is made by China Medical & HealthCare Group Limited (the "Company") pursuant to Rule 13.09(2) and Rule 13.51B(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

References are made to the (i) announcement issued by the Company dated 1 November 2019, (ii) annual report of the Company for the eighteen months ended 31 December 2019 and (iii) annual report of the Company for the year ended 31 December 2020.

This announcement is made by the board of directors of the Company (the "Board") for the purpose of updating shareholders and potential investors of the Company in respect of the proceedings instituted by the Securities and Futures Commission (the "SFC") in the Market Misconduct Tribunal of Hong Kong (the "MMT") relating to:

1. the Company;
2. Ms Chong Sok Un (executive director and Deputy Chairman) ("Ms Chong");
3. Dato' Wong Peng Chong (non-executive director) ("Dato' Wong");
4. Mr Kong Muk Yin (executive director) ("Mr Kong");
5. Mr Zhang Jian (independent non-executive director) ("Mr Zhang");
6. Mr Lau Siu Ki (former independent non-executive director) ("Mr Lau"); and

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1. Mr Ma Wah Yan (former independent non-executive director) ("Mr Ma") (each a "Specified Person", together, "Specified Persons").

The SFC and all Specified Persons have reached an agreement on the facts, liability and sanctions. The MMT accordingly held that the Specified Persons were in breach of the disclosure requirement under sections 307A, 307B and 307G (as the case may be) of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong) ("SFO") relating to inside information and ordered the below:

1. against the Company: a regulatory fine of HK$800,000;
2. against Ms Chong:
3. 1. a regulatory fine of HK$800,000;
   2. an order to undergo a training programme, to be approved by the SFC, on compliance with Part XIVA of the SFO, directors' duties and corporate governance;
4. against Dato' Wong:
5. 1. a regulatory fine of HK$900,000;
   2. an order that, he must not, for a period of 8 months, without leave of the Court of First Instance ("CFI") (1) be or continue to be a director, liquidator, or receiver or manager of the property or business, of a listed corporation; or (2) in any way, whether directly or indirectly, be concerned or take part in the management of a listed corporation;
   3. an order to undergo a training programme, to be approved by the SFC, on compliance with Part XIVA of the SFO, directors' duties and corporate governance;
6. against Mr Kong:
7. 1. a regulatory fine of HK$800,000;
   2. an order that, he must not, for a period of 6 months, without leave of the CFI (1) be or continue to be a director, liquidator, or receiver or manager of the property or business, of a listed corporation; or (2) in any way, whether directly or indirectly, be concerned or take part in the management of a listed corporation;
   3. an order to undergo a training programme, to be approved by the SFC, on compliance with Part XIVA of the SFO, directors' duties and corporate governance;

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1. against each of Mr Lau, Mr Ma and Mr Zhang:
2. 1. a regulatory fine of HK$300,000;
   2. an order to undergo a training programme, to be approved by the SFC, on compliance with Part XIVA of the SFO, directors' duties and corporate governance; and
3. against each of the Specified Persons:
4. 1. an order that he/she be responsible for the SFC's and the Government's costs and expenses on a joint and several basis.

For further details, please refer to the press release on the website of the SFC under the link below:

https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=21PR48

Accordingly, with effect from 13 May 2021, (i) Mr Kong has ceased to be an executive director, member of the executive committee, investment committee and the remuneration committee of the Company, and will cease to act as an Authorised Representative of the Company under Rule 3.05 of the Listing Rules and the Companies Ordinance (Cap. 622 of the Laws of Hong Kong) (the "Companies Ordinance"); (ii) Dato' Wong has ceased to be a non-executive director, member of the nomination committee and the remuneration committee of the Company; and (iii) Ms. Fung Ching Man, Ada, the company secretary of the Company, has been appointed by the Board as an Authorised Representative of the Company under the Listing Rules and the Companies Ordinance.

Shareholders of the Company and potential investors should exercise caution when dealing in the securities of the Company.

By Order of the Board

China Medical & HealthCare Group Limited

Chong Sok Un

Deputy Chairman

Hong Kong, 13 May 2021

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As at the date of this announcement, the Board comprises:

Executive Directors

Ms. Chong Sok Un (Deputy Chairman), Mr. Guo Meibao and Mr. Zhou Haiying

Non-Executive Directors

Mr. Zheng Zhen and Mr. Lai Hin Wing Henry Stephen

Independent Non-Executive Directors

Mr. Zhang Jian, Dr. Xia Xiaoning, Dr. Wong Wing Kuen, Albert and Ms. Yang Lai Sum, Lisa

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