Phoenix Healthcare Group Co. Ltd. provided earnings guidance for the year ended December 31, 2014. The board of directors of the company informed the shareholders of the company and potential investors that based on the information currently available to the company and the preliminary assessment by the company's management with reference to the unaudited management accounts of the group for the year ended December 31, 2014, the group is expected to record a significant increase in consolidated net profit attributable to the shareholders of the company for the year ended December 31, 2014 as compared with the consolidated net profit attributable to the shareholders of the company of approximately RMB 90.0 million for the year ended December 31, 2013.

The board considers that the expected improvement in the overall results of the group for the year ended December 31, 2014 as compared with the corresponding period in 2013 was mainly attributable to the following reasons: Due to the continuous increase in the overall patient visits and average spending per patient visit of the group's in-network hospitals and clinics, the group has recorded a strong growth in revenue and gross profit, in particular, the hospital management services segment and supply chain business segment, for the year ended December 31, 2014 as compared to the corresponding period in 2013; There has been a decrease in finance costs as a result of the full repayment of a shareholder's loan and a long-term loan, and a reduction in other expenses incurred in 2013 in relation to the listing of the group which is non-recurring in nature as compared to the corresponding period in 2013.