Modern Dental Group Limited — M&A Activity 2021

Jul 15, 2021

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.

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(Incorporated in the Cayman Islands with limited liability)

(Stock code: 3600)

VOLUNTARY DISCLOSURE ACQUISITION OF SWIFT DENTAL LABORATORY

This is a voluntary announcement made by the Company. The Company is pleased to announce the completion of a strategic acquisition of Swift Dental Laboratory (the “ SDL ”) (the “ Acquisition ”) on 9 July 2021.

SWIFT DENTAL LABORATORY

SDL is a clinical prosthesis business and an existing provider of dentures to the Group’s Australian business. The Acquisition will provide the Group with an important foundation to build on its existing Australian-made denture work to further expand the Group’s product offering and services to its existing clients. The initial purchase price of the Acquisition is approximately A$800,000 with an earn-out clause that could raise the purchase price to A$1,300,000 dependent on the achievement of the target performance by SDL over the next two years. Annual sales of SDL is approximately A$1,100,000.

The Board of Directors is of the view that the Acquisition is able to accelerate the Group’s revenue and profit growth in the Australian market. The Company has a proven track record in identifying and integrating acquisitions to capture further business opportunities, synergies and continues to expand the scale of its operations.

LISTING RULES IMPLICATION

As all the applicable percentage ratios of the Acquisition are lower than 5%, the Acquisition does not constitute notifiable transactions of the Company under Chapter 14 of the Listing Rules.

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DEFINITIONS

Unless otherwise specified, the following terms have the following meanings in this announcement:

“Board” the board of Directors; “Company” Modern Dental Group Limited (stock code: 3600), a company incorporated in the Cayman Islands with limited liability, the Shares of which are listed on the Stock Exchange; “Director(s)” Director(s) of the Company;

“Group” the Company and its subsidiaries; and “Share(s)” ordinary share(s) in the share capital of the Company.

By order of the Board Modern Dental Group Limited Chan Ronald Yik Long Chairman and Executive Director

Hong Kong, 15 July 2021

As at the date of this announcement, the board of directors of the Company comprises Chan Kwun Fung, Chan Kwun Pan, Ngai Shing Kin, Ngai Chi Ho Alwin, Chan Chi Yuen, Chan Ronald Yik Long and Chan Yik Yu as executive Directors, and Cheung Wai Bun Charles J.P., Chan Yue Kwong Michael, Cheung Wai Man William and Yau Ka Po as independent non-executive Directors.

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