Harmonicare Medical : VOLUNTARY ANNOUNCEMENT - IMPACT OF NOVEL CORONAVIRUS (COVID-19) EPIDEMIC ON BUSINESS OPERATIONS

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.

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1509)

VOLUNTARY ANNOUNCEMENT

IMPACT OF NOVEL CORONAVIRUS (COVID-19) EPIDEMIC ON

BUSINESS OPERATIONS

This announcement is made by Harmonicare Medical Holdings Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis.

Since the outbreak of the novel coronavirus (COVID-19) epidemic (the "Epidemic"), a number of provinces and municipalities in the People's Republic of China ("PRC") have taken emergency public health measures and various actions to prevent the spread of the Epidemic, including imposing restriction on the work resumption date after the Chinese New Year holidays and requiring residents to quarantine at home to the greatest extent. In addition, some hospitals operated by the Group in areas highly disrupted by the Epidemic, Wuhan and Wuxi for instance, are expropriated by the local government to treat COVID-19 cases. Due to the foregoing reasons, the number of our patients has reduced sharply, which in turn led to the significant decline in the performance of the hospitals operated by the Group. As part of the efforts to help fight the Epidemic, hospitals operated by the Group have donated money and medical masks and actively cooperate with the local authorities and communities on the Epidemic prevention work.

It is expected that hospitals operated by the Group will experience delay in resuming their normal operation, subject to the progress of the emergency public health measures. It is also expected that the decline in performance as a result of the administrative measures arising from the Epidemic is temporary. Under such special circumstances, the Group will use its best endeavors to minimize any negative economic impact on the Group.

The board of directors of the Company will continue to assess the impact of the Epidemic on the operation and financial performance of the Group, while closely monitoring the development of the Epidemic and the risks and uncertainties faced by the Group as a result of the Epidemic. The Company will take appropriate measures as necessary and make further announcements as and when appropriate.

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CONTINUED SUSPENSION OF TRADING

At the request of the Company, trading in the shares of the Company on The Stock Exchange of Hong Kong Limited has been suspended with effect from 9:00 a.m. on 1 April 2019. Trading in the shares of the Company will remain suspended until further notice.

Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

Harmonicare Medical Holdings Limited

Lin Yuming

Chairman, Executive Director and President

Hong Kong, 10 March 2020

As at the date of this announcement, the executive directors of the Company are Mr. Lin Yuming, Mr. Fang Zhifeng and Mr. Zhao Xingli; the non-executive directors of the Company are Mr. Lin Yuguo, Mr. Qiu Jianwei and Mr. Xu Jun; and the independent non-executive directors of the Company are Mr. Kong Aiguo, Ms. Fang Lan and Mr. Cai Jiangnan.

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