Mega Medical Technology : Announcements and Notices - (1) Business Update; and (2) Update on the Use of Proceeds from Rights Issue

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MEGA MEDICAL TECHNOLOGY LIMITED ߕ̋ᔼኪ߅ҦϞࠢʮ̡

(Incorporated in Bermuda with limited liability)

(Stock Code: 876)

(1) BUSINESS UPDATE;

AND

(2) UPDATE ON THE USE OF PROCEEDS FROM RIGHTS ISSUE

This announcement is made by Mega Medical Technology Limited (the "Company", and together with its subsidiaries, the "Group") to provide additional information to shareholders and potential investors of the Company in relation to the latest business development of the Group and update on the use of proceeds from the Rights Issue (as defined below).

(1)BUSINESS UPDATE

The Group is principally engaged in the dental prosthetics business, and has a business strategy to further diversify its business so as to further enhance shareholder value. Among which, the Company is looking into potential investment opportunities to enhance the Group's investment in the dental prosthetics business in view of the strong growth potential of the global dental prosthetic market. At the same time, the Company is also exploring the possibility to provide professional consultancy services to cooperating partners for the development of "health town" in the PRC with the expertise and advantageous resources the Group possesses within the healthcare sector under the current PRC national development.

Further, the Group endeavors to leverage on the experience and network of the management to capture business and investment opportunities, including but not limited to partnership and investment in fund within the health industry and investment in high-end medical equipment to prepare the Group's development in the long run.

As at the date of this announcement, no affirmative agreement has been entered into by the Group in relation to any such potential acquisitions and/or investments.

(2)

UPDATE ON THE USE OF PROCEEDS FROM THE RIGHTS ISSUE

Reference is made to the joint announcements of the Company and Kaisa Group Holdings Ltd. dated 28 July 2017 and 13 November 2017 and the prospectus of the Company dated 20 October 2017 (the "Prospectus") in relation to the issue by way of rights on the basis of one (1) new share of the Company each for every three (3) shares in issue (the "Rights Issue"), pursuant to which net proceeds of approximately HK$507.16 million were raised by the Company.

As disclosed in the Prospectus, the net proceeds from the Rights Issue were intended to be used in the following manner:

(i) approximately HK$203 million would be applied to fund the proposed acquisition of an overseas dental technology company (the "Proposed Acquisition of the Target

Company");

• (ii) approximately HK$296 million would be applied to the proposed acquisition of land to construct a manufacturing plant for the dental prosthetic business in the PRC (the

  "Proposed Acquisition of Land"); and

• (iii) the remaining proceeds would be applied for general working capital requirements of the Group.

The Company wishes to update shareholders and potential investors of the Company that, as at the date of this announcement, the Company has yet to enter into any agreement or memorandum of understanding for the negotiation for the Proposed Acquisition of the Target Company as the parties have not reached a consensus in relation to the valuation of the target company and the price adjustment mechanism for the Proposed Acquisition of the Target Company. The Company will continue to negotiate with the counterparty with an objective to reach an agreement. At the same time, the Company will also explore and consider other potential acquisitions of similar dental prosthetic solution companies. On the other hand, the Company is still in ongoing negotiations with the counterparty in relation to the Proposed Acquisition of Land. As at the date of this announcement, it is still uncertain as to when the definitive agreement(s) will be entered into.

Further announcement(s) will be made by the Company as and when appropriate in accordance with the requirements under the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.

By order of the Board

Mega Medical Technology Limited

Luo Jun

Chairman

Hong Kong, 19 January 2018

As at the date of this announcement, the Board comprises two executive Directors, namely Mr. Luo Jun (Chairman) and Mr. Wu Tianyu (Chief Executive Officer), one non-executive Director, namely Mr. Xu Hao, and three independent non-executive Directors, namely Dr. Liu Yanwen, Mr. Guo Peineng and Mr. Wang Wansong.