Yestar Healthcare : SUPPLEMENTAL ANNOUNCEMENT - PROFIT WARNING

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Yestar Healthcare Holdings Company Limited

巨 星 醫 療 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2393)

SUPPLEMENTAL ANNOUNCEMENT

PROFIT WARNING

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

Reference is made to the announcement of the Company dated 13 August 2020 (the ''Announcement'') in relation to the profit warning of the Company for the Interim Period 2020. Unless otherwise defined, capitalised terms used herein shall have the same meanings as defined in the Announcement.

The Board wishes to provide further information to the Shareholders and potential investors of the Company that, based on the currently available unaudited management accounts of the Group and the preliminary assessment by the Company's management, the Company is expected to record an unaudited consolidated net loss of the Group of not less than RMB700 million and an unaudited consolidated net loss attributable to the owners of the parent of not less than RMB600 million for the Interim Period 2020 as compared to an unaudited consolidated net profit of the Group of approximately RMB200.6 million and an unaudited consolidated net profit attributable to the owners of the parent of approximately RMB142.0 million for the six months ended 30 June 2019.

In addition, the Board wishes to provide further information to the Shareholders and potential investors of the Company that there is a significant impairment loss on goodwill and intangible assets in various subsidiaries of the Company for an aggregate

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amount of approximately RMB700 million, which was non-cash item, and thus will not have any material impacts on the Group's cash flows and business operations. The financial position of the Group remains healthy.

The Group is still in the process of finalizing its unaudited consolidated results for the Interim Period 2020. The information contained in this announcement is only a preliminary assessment by the Board based on the unaudited management accounts for the Interim Period 2020 and the information currently available to the Board, which may be subject to further adjustments after further internal review by the Board. Details of the unaudited financial performance of the Group will be contained in the interim results announcement of the Group for the Interim Period 2020, which is expected to be published on 26 August 2020.

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

By Order of the Board

Yestar Healthcare Holdings Company Limited

Hartono James

Chairman, CEO and Executive Director

Shanghai, 18 August 2020

As at the date of this announcement, the executive Directors are Mr. Hartono James, Ms. Wang Ying, Ms. Wang Hong and Mr. Chan Chung Man; and the independent non-executive Directors are Dr. Hu Yiming, Mr. Karsono Tirtamarta (Kwee Yoe Chiang) and Mr. Sutikno Liky.

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