[FOR IMMEDIATE RELEASE]
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Union Medical Healthcare Announces FY2018/19 Interim Results
Dedication to Development of Medical Specialty
Aspires to Become a Leading Integrated Medical Group in Asia

(28 November 2018, Hong Kong) Union Medical Healthcare Limited ("Union Medical Healthcare" or the "Company"; together with its subsidiaries, the "Group", SEHK stock code: 2138), a leading integrated medical group in Hong Kong, announces today its unaudited interim results for the six months ended 30 September 2018 ("Period").

The Group has evolved into a multi-discipline medical service provider. Preventive and precision medicine continue to be the fundamentals to the Group's medical platform and the Group will continue with the deployment of medical AI to enhance its competitiveness and efficiency.

The Group's contracted sales amounted to HK$880.1 million during the period, representing an increase of 35.2% compared with corresponding period last year. Total revenue reached HK$853.1 million, up by 38.2%. Net profit attributable to equity shareholders of the Company increased significantly by 54.8% to HK$194.2 million. The Board resolved to declare an interim dividend of 5.0 HK cents per share and a special dividend of 10.0 HK cents per share, i.e. a total of 15.0 HK cents per share for the period.

Diversification strategy drives robust growth, while business integration enhances efficiency
In order to meet the growing market demand for professional medical and health management services, Union Medical Healthcare has been dedicated to broadening its scope of services ranging from medical specialties, chiropractic, dentistry, health management, genetic test, aesthetic beauty, hair care to beauty products. With various medical and healthcare facilities coming into operation, the Group continued to focus on the increase in efficiency and effectiveness by integrating client and service flow between medical disciplines into the unified system. During the Period, revenue from medical and health management was HK$534.9 million, representing 68.2% of total revenue.

During the Period, the Group and Tencent Doctorwork entered into an agreement to jointly establish primary care clinics in Hong Kong and co-invest and develop IT system to connect medical services across the PRC and Hong Kong. Currently, two clinics under the brand "企鵝醫生" have commenced operation in Hong Kong. Both parties planned to establish a total of 20 clinics in Hong Kong over the next three years.

The Group and a registered medical practitioner specialised in clinical oncology established a joint venture during the Period, extending the Group's clinic service coverage to oncology and ancillary services. Occupying over 27,000 sq ft, the Group's specialty clinics, oncology and day procedure centre, and a diagnostic and imaging centres located in Central and Mongkok will soon commence operation.

Capturing tremendous market opportunities in Greater Bay Area through proactive development of medical tourism
The PRC government drives to develop the Greater Bay Area, aiming to initiate regional innovation and development of an integrated economic powerhouse led by Hong Kong. Following the official launch of the High Speed Rail (Guangzhou-Shenzhen-Hong Kong Link) and the Hong Kong-Zhuhai-Macao Bridge, it has become more convenient for mainland residents to travel between mainland China and Hong Kong, and residents from the Greater Bay Area are expected to pay more frequent visits to Hong Kong for consumption, creating ample market opportunities for medical tourism in Hong Kong.

Leveraging the Group's professional medical team, extensive clinic network, wide spectrum of products and dedication in offering service to cater medical tourism, contributions from the Group's PRC clients increased by 48.5% to HK$327.3 million, representing 38.4% of its revenue during the Period.

The Group currently operates 12 clinics in the PRC, of which a new medical aesthetic clinic in Shenzhen having commenced operation in October 2018. The Group will continue with the expansion of its own medical aesthetic clinic network in first-tier and selected second-tier cities in the PRC progressively, while exploring acquisition targets as well as partnership opportunities with local medical players in the PRC proactively to fuel its sustainable growth in this market with immense potential.

Mr. Eddy Tang, Chairman, Executive Director and Chief Executive Officer of Union Medical Healthcare said, "The Group invested substantially in expansion of our professional medical services segment during the period, with our robust business performance serving as a strong proof of our effective diversification strategy. Looking ahead, the Group will focus on development of high-end medical services and opening of specialty clinics, proactive expansion of preventive and precision medicine, with an aim of transforming the industry through the deployment of medical AI. Following the launch of a number of cross-border infrastructures, a one-hour life circle in the Greater Bay Area has gradually become in shape, and the huge demand from mainland Chinese residents for quality medical services is expected to bring high volume of customer traffic for our business. The Group will seize the strategic opportunities arising from the Greater Bay Area, actively expand its professional medical and healthcare market in the region and aspires to become a leading integrated medical group in Asia."

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About Union Medical Healthcare Limited
Leveraging preventive and precision medicine as the core to its business, Union Medical Healthcare is committed to the development of medical AI through integration of its multi-discipline medical services, supported by the solid foundation of its high-end branding and quality customer services to offer customers with professional, safe and effective medical services.

The Group is principally engaged in the provision of one-stop medical and health care services in the Greater China via its 54 clinics and servicing centres with an aggregate service floor area of more than 233,000 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 with highest sales achievement for years, primary care clinics jointly established with Tencent Doctorwork, chiropractic services centre SPINE Central, health management centre re:HEALTH and comprehensive dental centre UMH DENTAL CARE. A diagnostic and imaging centre HKAI, oncology treatment centre reVIVE, day surgery centre HKMED and specialty clinic SPECIALISTS CENTRAL are expected to soon commence operations.

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