China Medical & HealthCare : PROFIT WARNING SUPPLEMENTAL ANNOUNCEMENT

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China Medical & HealthCare Group Limited

(Incorporated in Bermuda with limited liability)

(Stock Code: 383)

PROFIT WARNING SUPPLEMENTAL ANNOUNCEMENT

This announcement is made by China Medical & HealthCare Group Limited (the "Company", together with its subsidiaries, collectively the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

Reference is made to the announcement of the Company dated 21 January 2021 in relation to the profit warning of the Company (the "Profit Warning Announcement"). Unless otherwise specified, capitalized terms used herein shall have the same meaning as those defined in the Profit Warning Announcement.

The Board wishes to further inform the shareholders of the Company and potential investors that based on its preliminary review on the relevant unaudited consolidated management accounts of the Group for the year ended 31 December 2020 and information currently available, the Group is expected to record a loss attributable to shareholders of the Company for the year ended 31 December 2020 in the range of approximately HK$100 million to HK$170 million (subject to any further impairment or other adjustments) as compared with a net profit of approximately HK$2.2 million for the corresponding period in 2019 (eighteen months). This was mainly due to the adverse factors set out in the Profit Warning Announcement and further to (i) the loss on fair value changes on investment properties compared with a gain recorded in the corresponding period in 2019 (eighteen months); and (ii) additional increase in impairment loss under expected credit loss model of financial assets.

This profit warning supplemental announcement is only based on the preliminary review on the relevant unaudited consolidated management accounts of the Group for the year ended 31 December 2020 and information currently available, which have not been confirmed or reviewed by the auditor of the Company, and may be subject to adjustments. The Company is in the process of finalizing the annual results for the year ended 31 December 2020 and shareholders of the Company and potential investors are advised to read carefully the annual results announcement of the Company for the year ended 31 December 2020, which is expected to be released before the end of March 2021.

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

Zhou Liye

Chairman

Hong Kong, 15 March 2021

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

Executive Directors

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

Non-Executive Directors

Mr. Zhou Liye (Chairman), Dato' Wong Peng Chong, 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