China Medical & Healthcare Group Limited Completed the Acquisition of Equity Interests in Yangpu Zhaohe

HONG KONG, May 16, 2016 /PRNewswire/ -- China Medical & HealthCare Group Limited (the "Company"; stock code: 383.HK), is pleased to announce that the acquisition of the remaining 18.36% equity interests in Yangpu Zhaohe Industrial Co., Ltd. ("Yangpu Zhaohe")("Acquisitions") was completed on 12 May 2016 with the total consideration of RMB90,000,000 to be paid in cash within 3 months after the registration of the transfer of the 18.36% registered capital of Yangpu Zhaohe with the relevant authorities.

Upon the completion of the Acquisitions, Yangpu Zhaohe has become a wholly-owned subsidiary of the the Company and its financial results and assets and liabilities will be fully consolidated into the consolidated financial statements of the Company and the Company's indirect equity interests in Tongren Healthcare Industry Group Co., Ltd. ("Tongren", together with its subsidiaries "Tongren Group") has been increased to 100%.

Tongren Group's principal business is investment in and management and operation of healthcare and hospital businesses, trading of medical equipment and related supplies, and property development in the PRC. Currently, Tongren Group owns three well-established operating integrated hospitals consisting of the Nanjing Tongren Hospital (Class III Integrated Hospital), the Kunming Tongren Hospital (Class III Integrated Hospital) and Yunnan Xinxinhua Hospital (Class II Integrated Hospital), offering a wide range of comprehensive hospital and healthcare services. In addition, Tongren Group owns two pieces of land designated for medical and health purposes each located near the Nanjing Tongren Hospital and the Kunming Tongren Hospital, with a total site area of 103.46 Mu and 155 Mu respectively.

The Company is dedicated to developing its healthcare and hospital business in the PRC as the outlook for the private healthcare sector in the PRC is positive due to its favourable demographic (such as aging population) and macro factors (such growing middle class), low penetration of private healthcare institutions, and supportive government policies which were promulgated by the central government.

Dr. Jonathan Seah, CEO of China Medical & HealthCare Group Limited, said, "Taking into account the high potential of the businesses which are fully encouraged and supported by the policies of the central government of the PRC, following the Acquisitions, the Group will gain absolute control and to run and operate Yangpu Zhaohe and Tongren Group in accordance with its plans in order to maximize the potential of the business of Tongren Group by strengthening its management and financial aspects."

About China Medical & HealthCare Group Limited (Stock Code: 383.HK)

China Medical & HealthCare Group Limited is a healthcare company focused on the medical and elderly care market in Mainland China. The Company aims to tap on the growing market of the hospital and medical services as well as elderly housing and healthcare service in the PRC, which is benefiting from the growing elderly population and favourable government policies. The Company's hospital ownership and operation in the PRC consist of three integrated hospitals in Nanjing, Kunming, and Yunnan Province. The Company is also developing an elderly care and healthcare showcase project in Zhu Jia Jiao County in Shanghai, namely Tide Health Campus, consisting of an elderly nursing home, service apartments, independent living units and a commercial area with shopping malls, retails shops and club hall facilities.

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