Town Health International Medical Gp : Announcements and Notices -

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.

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)

UPDATE ON RESUMPTION PROGRESS

This announcement is made by Town Health International Medical Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.24A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

Reference is made to the announcements of the Company dated 18 December 2017, 11 July 2018, 1 August 2018, 5 November 2018 and 31 January 2019, respectively, the interim results announcement of the Company for the six months ended 30 June 2018 dated 28 August 2018, the interim report of the Company for the six months ended 30 June 2018 published on 21 September 2018, the annual results announcement of the Company for the year ended 31 December 2018 dated 28 March 2019 and the annual report of the Company for the year ended 31 December 2018 published on 17 April 2019.

1

RECENT DEVELOPMENT OF RESUMPTION

As disclosed in the Company's announcement dated 18 December 2017, the board (the "Board") of directors of the Company (the "Directors") has established an independent board committee, comprising all the independent non-executive Directors, to conduct an independent investigation into the issues and matters arising from or relating to the trading suspension, to make recommendations to the Board on appropriate actions to be taken, and to work towards the goal of having the shares of the Company resumed trading on the Stock Exchange. In February 2018, the independent board committee recruited an independent forensic accountant to conduct a forensic investigation into the issues and matters arising from or relating to the trading suspension and other related issues. The forensic investigation has been completed and reported to the independent board committee. As disclosed in the Company's announcement dated 31 January 2019, as a result of communication with the Securities and Futures Commission (the "SFC"), the independent board committee has engaged the independent forensic accountant to conduct further inquiry and investigation into relevant matters and to make recommendations to the Board accordingly. As disclosed in the annual report of the Company for the year ended 31 December 2018 published on 17 April 2019, such further inquiry and investigation has been completed and reported to the independent board committee.

As disclosed in the Company's announcements dated 11 July 2018, 1 August 2018, 5 November 2018 and 31 January 2019, respectively, the interim results announcement of the Company for the six months ended 30 June 2018 dated 28 August 2018, the interim report of the Company for the six months ended 30 June 2018 published on 21 September 2018, the annual results announcement of the Company for the year ended 31 December 2018 dated 28 March 2019 and the annual report of the Company for the year ended 31 December 2018 published on 17 April 2019, the Company has made representations to the SFC to address the SFC's concerns on the Group and to seek the SFC's re-consideration on its direction. The Company is striving to resume the trading of its shares on the Stock Exchange as soon as practicable and will continue to communicate with the SFC in this regard, but at this stage, the Company is unable to provide a concrete timetable on the next steps in connection with the trading resumption. The Company will continue to keep the shareholders and potential investors of the Company informed of the progress on the trading resumption.

2

BUSINESS UPDATE

The Company wishes to inform the shareholders and potential investors of the Company that the Group has been carrying on its business as usual and continues to focus on (i) provision of medical and dental services in Hong Kong; (ii) managing healthcare networks and provision of third party medical network administrator services in Hong Kong; (iii) provision of medical and dental services in the People's Republic of China, provision of hospital management and related services in the People's Republic of China; (iv) trading of listed securities and leasing of properties; and (v) provision of miscellaneous healthcare related services.

CONTINUED SUSPENSION OF TRADING

Trading in the shares of the Company has been suspended with effect from 9:00 a.m. on 27 November 2017 and will continue to be suspended until further notice.

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

By order of the Board

Town Health International Medical Group Limited

Lee Chik Yuet

Executive Director

Hong Kong, 30 April 2019

As at the date of this announcement, the executive Directors are Miss Choi Ka Yee, Crystal (Chairperson), Dr. Hui Ka Wah, Ronnie, JP (Chief Executive Officer), Mr. Lee Chik Yuet, Mr. Wong Seung Ming (Chief Financial Officer) and Dr. Chan Wing Lok, Brian; the non-executive Directors are Dr. Choi Chee Ming, GBS, JP (Deputy Chairman), Ms. Fang Haiyan (Deputy Chairperson) and Mr. Chen Jinhao; and the independent non- executive Directors are Mr. Ho Kwok Wah, George, MH, Mr. Yu Xuezhong, Ms. Li Mingqin, Mr. Wang John Hong-chiun, Mr. Yu Kai Fung Jackie and Mr. Wong Sai Kit.

3