Union Medical Healthcare issues positive profit alert about expected surge of over 30% in annual revenue and profit after tax for FY2017/18

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Union Medical Healthcare issues positive profit alert about expected surge of over 30% in annual revenue and profit after tax for FY2017/18

The Group increases gross floor area of service outlets by 27,000 sq.ft. in pursuit of excellence in service

(24 May 2018, Hong Kong) Union Medical Healthcare Limited ("Union Medical Healthcare" or the "Company", which together with its subsidiaries, is referred to as the "Group", SEHK stock code: 2138), a leading integrated medical group in Hong Kong, has issued a positive profit alert, expecting to record a significant increase of over 30% in both revenue and profit after tax for the year ended 31 March 2018 as compared to that of the corresponding period in 2017. The increases are mainly attributable to an increase of no less than 40% in total sales contracts, contribution from the newly acquired and developed businesses and revaluation gain from the investment properties, taking the Group to greater heights.

To enhance its scope of services and our medical network, the Group has entered into tenancy agreements for premises located in Central and Mongkok to establish specialist clinics and a diagnostic and imaging centre. Of which the Group has secured gross floor area of 10,000 sq. ft. in No. 9 Queen's Road Central and 17,000 sq. ft. in Langham Place Mongkok to establish specialist clinics, oncology and day surgery centre, and a diagnostic and imaging centre.

In addition to the advanced radiology services and aesthetic treatments, the comprehensive range of surgical specialties care offered potentially include but not limited to cardiothoracic, ear, nose and throat (ENT), general surgery, plastic surgery, neurosurgery, orthopaedics and urology. Our advanced radiology services shall include magnetic resonance imaging (MRI), computed tomography scan (CT Scan), polyethylene terephthalate (PET CT), ultrasound and EOS medical imaging. Our oncology centre and day surgery centre offer services potentially including but not limited to chemotherapy, endoscopy, minor operations and traditional Chinese medicine treatments. Capital investment for establishing the above clinics and centres is expected to be over HK$100 million. All these facilities are expected to start operation by the end of 2018.

Mr. Eddy Tang, Chairman, Executive Director and Chief Executive Officer of Union Medical Healthcare, said, "Union Medical Healthcare aspires to become a leading integrated medical group in the Greater China Region. Through mergers and acquisitions, cooperation with renowned services providers, expansion of the service network and our top-notch professional medical team, the Group is capable of offering one-stop medical, health and beauty services. The outstanding financial results have demonstrated the soundness of the Group's strategy for proactive business expansion. We are confident about the prospect of our business. In addition to the expansion of its flagship store in Mong Kok, the Group has established a new medical centre on a prime site in Central to offer premium medical services, thus enriching its medical services. Our professional, proactive approach to business and our diverse services have added impetus to the Group's growth. The Group will continue with its prudent and pragmatic business strategy to capture opportunities on the market, thus strengthening its leading position in the industry of aesthetic medical services and generating better returns to shareholders."

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About Union Medical Healthcare Limited Union Medical Healthcare is principally engaged in the provision of one-stop medical and health care services in the Greater China via its 53 clinics and servicing centres with an aggregate service floor area of 200,000 sq. ft. The Group provides a full range of services and products under our well-recognised brands, including those of its one-stop aesthetic medical solutions provider DR REBORN, chiropractic services centre SPINE Central, health management and vaccination centre re:HEALTH and comprehensive dental centre UMH DENTAL CARE. The Group is the largest aesthetic medical service provider in Hong Kong in terms of revenue and obtained the Hong Kong Top Service Brand in 2016.

For further information, please contact: iPR Ogilvy & Mather Callis Lau / Molisa Lau / Maggie Chui / Francesca Yeung Tel: (852) 2136 6952 / 2136 6953 / 2136 8059 / 3920 7639 Fax: (852) 3170 6606 Email: umh@iprogilvy.com