MediNet Group Limited — Earnings Release 2020

Jun 12, 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited 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.

MediNet Group Limited

醫匯集團有限公司

(Incorporated in the Cayman Islands with limited liability)
(Stock code: 8161)

PROFIT WARNING

This announcement is made by MediNet Group Limited (the "Company" and together with its subsidiaries, the "Group") pursuant to Rule 17.10 of the Rules Governing the Listing of Securities on the GEM of The Stock Exchange (the "GEM Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that, based on the information currently available to the Board and the preliminary review and assessment on the Group's unaudited consolidated management accounts for the year ended 31 March 2020, the Board expects that whilst the revenue of the Group will increase during the year ended 31 March 2020 as compared to that for the corresponding year of 2019, the Group may record approximately an 10% to 15% increase in its consolidated net loss for the year ended 31 March 2020.

To the best knowledge of the Directors, the increase in unaudited consolidated net loss for the year was mainly attributable to the combined effect of (i) one-off impairment loss of right-of-use assets and property, plant and equipment at the Shenzhen dental clinic; and (ii) fair value change on contingent consideration receivable. Such provision and fair value changes are non-cash items and will not have an impact on the cash flow of the Group.

The Company is still in the process of finalising the Group's financial results for the year ended 31 March 2020. This profit warning announcement is issued on the basis of the Board's preliminary assessment of the unaudited consolidated management accounts of the Group and information currently available to the Board which are subject to finalisation and other potential adjustments, if any, and have not been confirmed or audited by the Company's auditor. Shareholders and potential investors of the Company are advised to read carefully the results announcement of the Company for the year ended 31 March 2020, which is expected to be released after the Board meeting to be held on 29 June 2020.

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Shareholders and potential investors should exercise caution when dealing in the shares of the Company.

By order of the Board of
MediNet Group Limited
Chan Chi Wai, Nelson
Chairman and Executive Director

Hong Kong, 12 June 2020

As at the date of this announcement, the Board comprises two executive Directors, namely Mr. Chan Chi Wai Nelson and Ms. Jiang Jie and three independent non-executive Directors, namely Dr. Lieu Geoffrey Sek Yiu, Mr. Leung Po Hon and Mr. Wong Wai Leung.

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