China Health : THIRD QUARTERLY RESULTS ANNOUNCEMENT FOR THE NINE MONTHS ENDED 30 SEPT

CHINA HEALTH GROUP INC.

中國醫療集團有限公司

(Carrying on business in Hong Kong as "萬全醫療集團")

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 08225)

THIRD QUARTERLY RESULTS ANNOUNCEMENT 2021

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-size companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risk of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.

The Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement, for which the directors (the ''Directors'') of China Health Group Inc. (the ''Company'') collectively and individually accept responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company and its subsidiaries (together, the "Group"). The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

CHINA HEALTH GROUP INC.

中國醫療集團有限公司

(Carrying on business in Hong Kong as "萬全醫療集團")

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 08225)

FINANCIAL HIGHLIGHTS

1. The Group achieved a turnover of RMB55,829,000 for the nine months ended 30 September 2021 (the "Period"), representing an increase of approximately 8.5% compared with the corresponding period of 2020.
2. The Group achieved profit before taxation of about RMB31,059,000 for the Period, representing a decrease of approximately 16.1% as compared with the corresponding period of 2020.
3. Basic earnings per share are approximately RMB2.59 cents for the Period, representing a decrease of approximately 21.5% as compared with the corresponding period of 2020.
4. The Board does not recommend the payment of any interim dividends for the nine months ended 30 September 2021.

THIRD QUARTERLY RESULTS (UNAUDITED)

The board of Directors (the "Board") is here to present the condensed unaudited consolidated third quarterly results of the Group for the nine months ended 30 September 2021, together with the comparative condensed unaudited consolidated figures for the corresponding period in 2020:

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

For the nine months ended 30 September 2021

			Unaudited			Unaudited
		Three months ended 30 September	Nine months ended 30 September
		2021		2020	2021		2020
	Notes		RMB'000	RMB'000		RMB'000	RMB'000
Turnover	4	7,736		9,434	55,829		51,457
Cost of sales		(2,027)		(3,695)	(11,765)		(12,835)
Gross profit		5,708		5,739	44,064		38,622
Other income	5	98		10,262	351		10,325
Administrative
expenses	6	(2,728)		(4,502)	(13,345)		(11,886)
Profit from
operations		3,078		11,499	31,070		37,061
Finance costs		1		(12)	(11)		(38)
Profit before
taxation		3,079		11,487	31,059		37,023
Income tax	8	(462)		(735)	(5,251)		(4,224)
Profit for the
year		2,617		10,752	25,808		32,799
Attributable to :		-		-
equity holders
of the Company		2,617		10,752	25,808		32,799
Minority
interests
Profit for the
year		2,617		10,752	25,808		32,799
Earnings per
share (cent)
- basic	7	0.26		1.08	2.59		3.30
- diluted	7	0.26		1.08	2.59		3.30

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

As of 30 September 2021

														Statutory
					Share
					Based									enterprise	Retained
	Share		Share		payment		Special		Capital		Statutory			expansion	(losses)/	Total
	capital		premium		reserve		reserve		reserve		reserve			fund	earnings	equity
	RMB'000		RMB'000		RMB'000		RMB'000		RMB'000		RMB'000			RMB'000	RMB'000	RMB'000
At 1 January
2020	88,673	-	2,894	6,039	6,231	12,738	6,986	(66,581)		56,980
Profit for the
period	-	-	-	-	-	-	-	32,799		32,799
At 30 June
2020	88,673	-	2,894	6,039	6,231	12,738	6,986	(33,782)		89,779
At 1 January
2021	88,906	1,402	2,273	6,039	6,231	19,551	6,986	(12,713)		118,675
Profit for the
period	-	-	-	-	-	-	-	25,808		25,808
Equity settled
Share-based
transactions	-	-	572	-	-	-	-	-	572
At 30 June
2021	88,906	1,402	2,845	6,039	6,231	19,551	6,986	13,095		145,055

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the nine months ended 30 September 2021

1. Corporate information

The Company was incorporated in the Cayman Islands on 21 May 2002 as an exempted company with limited liability under the Companies Law of the Cayman Islands. The address of its registered office is 4th Floor, PO Box 2804, Scotia Centre, George Town, Grand Cayman, Cayman Islands and its principal place of business is Boda Building, 28 Beiqing Road, Life Science Park, Zhongguancun, Changping District, Beijing, China. The Company has had its shares listed on GEM of the Stock Exchange of Hong Kong Limited since 10 July 2003. The Company is an investment holding company. The principal activities of its subsidiaries are to provide fully integrated pharmaceutical services including clinical research services, post marketing surveillance, real-world study, medical science events, medical marketing and product promotion service, and other medical services. The Company is focusing on building itself into a group corporation providing comprehensive terminal medical service under international architecture.

2. Adoption of new and revised international financial reporting standards

In the current year, the Company has adopted all the new and revised Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") that are relevant to its operations and effective for its accounting year beginning on 1 January 2018. HKFRSs comprise Hong Kong Financial Reporting Standards; Hong Kong Accounting Standards ("HKAS"); and Interpretations. The adoption of these new and revised HKFRSs did not result in significant changes to the Company's accounting policies, presentation of the Company's financial statements and amounts reported for the current year and prior years except as stated below.

The Group has not applied the new HKFRSs that have been issued but are not yet effective. The Group has already commenced an assessment of the impact of these new HKFRSs but is not yet in a position to state whether these new HKFRSs would have a material impact on its results of operations and financial position.

3. Accounting policies and basis of preparation

These unaudited condensed finical statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards ("HKFRSs") and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally

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