China Health : COMPLETION OF MAJOR TRANSACTION IN RELATION TO THE PROPOSED ACQUISITION OF EQUITY INTEREST IN THE TARGET COMPANY

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China Health Group Limited

中國衛生集團有限公司

(Carrying on business in Hong Kong as CHG HS Limited)

(Incorporated in Bermuda with limited liability)

(Stock Code: 673)

COMPLETION OF MAJOR TRANSACTION

IN RELATION TO

THE PROPOSED ACQUISITION OF EQUITY INTEREST

IN THE TARGET COMPANY

Reference is made to (i) the circular of China Health Group Limited (the "Company") dated 25 September 2019 (the "Circular") in relation to the major transaction involving the proposed acquisition of Anping Bo'ai Hospital; and (ii) the announcement of the Company dated 18 October 2019 in relation to the poll results of the SGM. Capitalised terms used herein have the same meanings as those defined in the Circular unless otherwise specified.

The Board is pleased to announce that, following the satisfaction of all of the Conditions Precedent under the Share Purchase Agreement, the Completion took place on 24 October 2019. Following the Completion, the Target Company is held as to 70% by the Purchaser and as to 30% by Mr. Sang. The Target Company has become an indirect non-wholly owned subsidiary of the Company and the financial results of the Target Company will be consolidated into the accounts of the Group.

By Order of the Board

China Health Group Limited

Zhang Fan

Chairman of the Board and Executive Director

Hong Kong, 25 October 2019

As at the date of this announcement, the Board comprises four executive Directors, namely, Mr. Zhang Fan (chairman), Mr. Chung Ho, Mr. Wang Jingming, and Mr. Weng Yu; four non-executive Directors, namely, Mr. Xing Yong, Mr. Huang Lianhai, Mr. Zhang Dawei and Mr. Wang Yongming; and four independent non-executive Directors, namely, Mr. Xiao Zuhe, Mr. Jiang Xuejun, Mr. Du Yanhua and Mr. Lai Liangquan.