Town Health International Medical : RESIGNATION OF NON-EXECUTIVE DIRECTOR AND PROPOSED SPECIAL GENERAL MEETING TO CONSIDER CHANGES IN COMPOSITION OF THE BOARD

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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)

RESIGNATION OF NON-EXECUTIVE DIRECTOR

AND

PROPOSED SPECIAL GENERAL MEETING TO CONSIDER

CHANGES IN COMPOSITION OF THE BOARD

RESIGNATION OF NON-EXECUTIVE DIRECTOR

The board (the "Board") of directors (the "Directors") of Town Health International Medical Group Limited (the "Company") announces that Dr. Choi Chee Ming, GBS, JP ("Dr. Choi") has tendered his resignation as a non-executive Director and a Deputy Chairman of the Company with effect from 1 December 2019 due to his other business commitments which require more of his time.

Dr. Choi confirms that he has no disagreement with the Board and there is no matter regarding his resignation that needs to be brought to the attention of the shareholders of the Company (the "Shareholders").

The Board would like to take this opportunity to express its sincere gratitude to Dr. Choi for his valuable contribution to the Company during his tenure of office.

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PROPOSED SPECIAL GENERAL MEETING TO CONSIDER CHANGES IN COMPOSITION OF THE BOARD

The Board received a letter dated 25 October 2019 (the "Broad Idea Letter") from Broad Idea International Limited ("Broad Idea"). In the Broad Idea Letter, Broad Idea mentioned that it is a Shareholder holding 1,418,576,764 shares in the Company, representing 18.85% of the paid up capital of the Company. Broad Idea requests, inter alia, that the Board shall on its initiative convene a special general meeting to subject all Directors, including executive, non- executive and independent non-executive Directors, to re-election by the Shareholders.

On 31 October 2019, the Board has resolved that:

1. each Director be called to resign and each Director who resigns (the "Resigning Directors") shall be eligible to put himself/herself forward for re-election at a special general meeting of the Company to be convened (the "SGM");
2. each Director who does not resign shall be proposed for removal at the SGM; and
3. the SGM be convened and that Mr. Ho Kwok Wah, George, MH (an independent non- executive Director) and Mr. Chen Jinhao (a non-executive Director) be authorised to execute all documents and do all things necessary to convene the SGM.

The Board appreciates and acknowledges the need to have an effective Board at all times and that the Company is required to comply with the relevant requirements in relation to the minimum number of independent non-executive Directors under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Therefore, the Board considers that the resignation of the Resigning Director(s) (if any) should not take effect until the conclusion of the SGM.

Broad Idea has confirmed in the Broad Idea Letter that it will abstain from voting in the SGM.

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The Company will start preparing for the SGM. Further announcement(s), notice(s) and circular(s) will be published as soon as practicable.

By order of the Board

Town Health International Medical Group Limited

Chen Jinhao

Non-Executive Director

31 October 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. Yu Kai Fung Jackie and Mr. Wong Sai Kit.

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