Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Meinian Onehealth Healthcare Holdings Co., Ltd.

Semi-annual Financial Report 2019

(Unaudited)

August, 2019

1 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

1. Consolidated Balance Sheet Name of Enterprise: Meinian Onehealth Healthcare Holdings Co., Ltd. June 30, 2019 Unit: yuan Items June 30, 2019 December 31, 2018

Current assets:

Cash and cash equivalents 2,038,440,705.93 2,494,443,782.20

Settlement provisions

Lending funds

Transactional financial assets Financial assets measured at fair value through profit or loss for the current period Derivative financial assets

Notes receivable 1,336,840.00

Accounts receivable 2,197,624,223.77 1,969,487,061.48

Receivables financing

Payment in advance 253,343,503.92 201,910,849.18

Premiums receivable

Reinsurance receivable

Reserve for reinsurance receivable

Other receivables 412,005,048.13 396,632,145.97

Including: Interests receivable

Dividends receivable 13,463,507.00 2,506,849.32

Buying back resale financial assets

Inventories 116,961,577.84 126,509,029.89

Contract assets

Assets held for sale

Non-current assets within one year 486,208,813.70 360,853,015.93

Other current assets 275,291,695.96 256,561,998.78

Total current assets 5,781,212,409.25 5,806,397,883.43

Non-current assets:

Loan and advances

Debt investment

Available-for-sale financial assets 1,077,054,315.70

2 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Other debt investment

Held-to-maturity investments

Long-term receivables 846,524,470.03 744,652,063.18

Long-term equity investments 77,326,432.82 60,231,369.98

Other equity investment

Other non-current financial assets 1,297,241,515.70

Investment properties

Fixed assets 2,712,484,638.45 2,562,138,477.09

Construction in progress 63,035,038.29 68,604,915.20

Biological assets held for production

Oil and gas assets

Usufruct assets

Intangible assets 173,420,829.70 165,411,353.51

Development expenditure

Goodwill 5,129,074,707.54 4,739,177,185.62

Long-term deferred expenses 835,592,868.66 827,241,158.91

Deferred tax assets 162,419,097.96 83,033,241.39

Other non-current assets 324,117,517.80 220,627,280.10

Total non-current assets 11,621,237,116.95 10,548,171,360.68

Total Assets 17,402,449,526.20 16,354,569,244.11

Current liabilities:

Short-term borrowings 2,361,167,746.42 2,413,749,870.37

Borrowing from the central bank

Unpacking funds

Transactional financial liabilities Financial liabilities measured at fair value through profit or loss for the current period Derivative financial liabilities

Notes payable 663,758.20 30,781,500.00

Accounts payable 933,809,860.27 772,721,006.83

Advances from customers 905,833,730.70 1,416,392,619.17

Selling repurchased financial assets Deposit taking and inter-bank deposit

Agent trading securities

3 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Agency underwriting securities Employee benefits payable 338,601,324.78 445,772,619.73

Tax payables 70,608,959.61 156,481,244.95

Other payables 753,166,628.13 590,396,914.50

Including: Interests payable 51,885,525.31 55,119,683.93

Dividends payable 179,181,454.86 8,315,608.32

Fees and commissions

Dividend payable for reinsurance

Contract liability

Liabilities held for sale

Non-current liabilities within one year 1,424,025,027.96 827,678,975.49

Other current liabilities

Total current liabilities 6,787,877,036.07 6,653,974,751.04

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 1,609,995,461.66 1,353,556,140.76

Bonds payable 1,836,913,597.44 896,123,646.74

Including: Preferred shares

Perpetual bonds

Lease liability

Long-term payables 117,347,135.53 100,552,675.75

Long-term employee benefits payable

Provisions

Deferred income 4,650,000.00 4,950,000.00

Deferred tax liabilities 94,280,812.17 49,414,112.77

Other non-current liabilities 308,400.70 330,675.54

Total non-current liabilities 3,663,495,407.50 2,404,927,251.56

Total liabilities 10,451,372,443.57 9,058,902,002.60

Shareholders' equity:

Share capital 3,121,566,956.00 3,121,566,956.00

Other equity instruments

Including: preferred stock

Perpetual bond

Capital reserve 1,231,198,168.12 1,331,871,192.64

4 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Less: Treasury shares 213,602,977.05 83,515,021.33

Other comprehensive income 289,120.99 518,850.52

Specialized reserve

Surplus reserves 71,934,339.69 71,934,339.69

General risk reserve

Undistributed profit 1,983,086,545.86 2,123,783,947.53 Total equity attributable to the shareholders of the 6,194,472,153.61 6,566,160,265.05 parent company Minority interests 756,604,929.02 729,506,976.46

Total Shareholders' Equity 6,951,077,082.63 7,295,667,241.51

Total Liabilities and Shareholders' Equity 17,402,449,526.20 16,354,569,244.11

Legal representative: Yu Rong Principal in charge of accounting: Yin Jianchun Head of accounting department: Yin Jianchun

5 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

2. Parent Company Balance Sheet Unit: yuan Items June 30, 2019 December 31, 2018

Current assets:

Cash and cash equivalents 156,444,060.76 67,417,904.15

Transactional financial assets Financial assets measured at fair value through profit or loss for the current period Derivative financial assets

Notes receivable

Accounts receivable 41,100,000.00 7,200,000.00

Receivables financing

Payment in advance 4,952,597.13 3,554,020.84

Other receivables 198,772,014.03 404,954,606.26

Including: Interests receivable

Dividends receivable 110,953,333.33 302,506,849.32

Inventories 93,793.10

Contract assets

Assets held for sale

Non-current assets within one year

Other current assets 10,737,224.48 10,162,420.90

Total current assets 412,099,689.50 493,288,952.15

Non-current assets:

Debt investment

Available-for-sale financial assets 432,000,000.00

Other debt investment

Held-to-maturity investments

Long-term receivables

Long-term equity investments 9,694,020,423.73 8,858,669,170.05

Other equity investment

Other non-current financial assets 432,000,000.00

Investment properties

Fixed assets 2,836,745.38 2,512,198.71

6 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Construction in progress 420,275.80 371,732.11

Biological assets held for production

Oil and gas assets

Usufruct assets

Intangible assets

Development expenditure

Goodwill

Long-term deferred expenses 8,693,565.20 7,776,788.23

Deferred tax assets

Other non-current assets 100,715,973.87 100,640,000.00

Total non-current assets 10,238,686,983.98 9,401,969,889.10

Total Assets 10,650,786,673.48 9,895,258,841.25

Current liabilities:

Short-term borrowings 30,000,000.00 30,000,000.00

Transactional financial liabilities Financial liabilities measured at fair value through profit or loss for the current period Derivative financial liabilities

Notes payable

Accounts payable 5,698,841.48 1,208,332.31

Advances from customers

Contract liability

Employee benefits payable 1,557,172.11 4,425,860.34

Tax payables 726,148.33 407,936.98

Other payables 1,445,251,292.78 468,310,130.51

Including: Interests payable 11,270,658.97 41,255,658.97

Dividends payable 165,092,877.67

Liabilities held for sale

Non-current liabilities within one year 398,622,894.59

Other current liabilities

Total current liabilities 1,881,856,349.29 504,352,260.14

Non-current liabilities:

Long-term borrowings 20,000,000.00 20,000,000.00

Bonds payable 498,901,390.30 896,123,646.74

7 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Including: Preferred shares

Perpetual bonds 498,901,390.30 896,123,646.74

Lease liability

Long-term payables

Long-term employee benefits payable

Provisions

Deferred income

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities 518,901,390.30 916,123,646.74

Total Liabilities 2,400,757,739.59 1,420,475,906.88

Shareholders' equity:

Share capital 3,121,566,956.00 3,121,566,956.00

Other equity instruments

Including: Preferred stock

Perpetual bond

Capital reserve 5,047,465,527.61 5,047,465,527.61

Less: Treasury shares 213,602,977.05 83,515,021.33

Other comprehensive income

Specialized reserve

Surplus reserves 136,626,800.32 136,626,800.32

Undistributed profit 157,972,627.01 252,638,671.77

Total Shareholders' Equity 8,250,028,933.89 8,474,782,934.37

Total Liabilities and Shareholders' Equity 10,650,786,673.48 9,895,258,841.25

8 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

3. Consolidated Statement of Income Unit: yuan Items Half year of 2019 Half year of 2018

I. Total revenue 3,641,060,666.52 3,537,564,316.46

Including: Operating revenue 3,641,060,666.52 3,537,564,316.46

Interest income

Earned premium

Fee and commission income

II. Total operating expense 3,779,806,068.31 3,340,890,342.44

Including: Operating expense 2,344,165,299.69 1,957,649,223.75

Interest expense

Fee and commission expense

Surrender fee

Net loss of expenditure

Withdrawal of insurance contract net reserve

Bond insurance expense

Reinsurance expense

Tax and surcharge expense 6,223,834.77 2,775,067.70

Selling expense 910,302,583.50 988,598,937.10

Administrative expense 308,565,538.54 271,672,249.05

Research and development expense 22,964,101.21 14,699,340.50

Financial expense 187,584,710.60 105,495,524.34

Including: Interest expense 197,564,525.14 103,986,271.67

Interest income 12,710,587.25 7,456,581.81

Add: Other income 2,147,648.83 1,703,969.42

Investment income (loss presented with "-" prefix) 41,037,273.03 108,795,080.48

Including: Investment income from associates and joint ventures -3,672,776.99 600,113.77 Financial assets derecognized as a result of amortized cost (loss presented with "-") Exchange gains (loss presented with "-")

Net exposure hedge income (loss presented with "-")

Gains from changes in fair value (loss presented with "-") 183,835,590.00

Credit impairment loss (loss presented with "-") -8,527,923.80

9 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Asset impairment loss (loss presented with "-") -5,006,130.08

Asset disposal income (loss presented with "-") -497,308.27 -391,120.28

III. Operating profit ( “-” for loss ) 79,249,878.00 301,775,773.56

Add: Non-operating revenue 4,380,772.02 3,716,566.87

Less: Non-operating expense 7,607,870.32 2,896,888.45

IV. Total profit ( “-” for loss ) 76,022,779.70 302,595,451.98

Less: Income tax expense 31,062,782.46 98,625,547.44

V. Net profit ( “-” for net loss ) 44,959,997.24 203,969,904.54

(I) Classified by continuity of operations

1. Net profit from continuing operations ( “-” for loss ) 44,959,997.24 203,969,904.54

2. Net profit from discontinued operation ( “-” for loss )

(II) Classified by ownership of the equity

1. Net profit from minority interests ( “-” for loss ) 16,837,786.00 158,801,700.78

2. Attributable to shareholders of the company ( “-” for loss ) 28,122,211.24 45,168,203.76

VI. Other comprehensive income, net after tax -229,729.53 246,471.42 Other comprehensive income after tax attributable to parent -229,729.53 246,471.42 company (1) Other comprehensive income that will not be subsequently reclassified to profit or loss 1. Changes arising from remeasurement of net liability or net asset of defined benefit plan 2. Shares of other comprehensive income of the investee accounted for using equity method that will not be subsequently reclassified to profit or loss 3. Changes in fair value of other equity instruments investment

4. Changes in the fair value of the company's own credit risk

5. Others (2) Other comprehensive income that will be subsequently -229,729.53 246,471.42 reclassified to profit or loss 1. Other comprehensive income of convertible profits and losses under the equity method 2. Changes in fair value of other debt investments 3. Gains and losses from changes in fair value of available-for-sale financial assets 4. The amount of financial assets reclassified into other comprehensive income 5. Held-to-maturity investments are reclassified as gains and losses on available-for-sale financial assets 6. Other credit investment credit impairment provisions

7. Cash flow hedge reserve

10 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

8. Foreign currency financial statement translation difference -229,729.53 246,471.42

9.Others After tax amount of other comprehensive income attributable to minority shareholders VII. Total comprehensive income 44,730,267.71 204,216,375.96 Total comprehensive income attributable to shareholders of the 16,608,056.47 159,048,172.20 Parent Company Total comprehensive income attributable to minority shareholders 28,122,211.24 45,168,203.76

VIII. Earnings per share:

1. Basic earnings per share 0.01 0.05

2. Diluted earnings per share 0.01 0.05

Legal representative: Yu Rong Principal in charge of accounting: Yin Jianchun Head of accounting department: Yin Jianchun

11 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

4. Parent Company Statement of Income Unit: yuan

Items Half year of 2019 Half year of 2018

I. Total operating revenue 38,915,094.34 0.00

Less: Operating expense 4,000,000.00 0.00

Tax and surcharge 4,223.71

Selling expense

Administrative expense 49,307,908.24 30,898,325.88

Research and development expense

Financial expenses 27,189,907.20 23,707,938.38

Including: Interest expense 31,305,763.90 24,984,605.55

Interest income 168,387.81 2,216,085.76

Add: Other income 96,349.54

Investment income (loss presented with "-" prefix) 116,815,048.80 4,436,846.79 Including: Investment income from associates and joint -153,746.32 -115,456.08 ventures Financial assets derecognized as a result of amortized cost

(loss presented with "-") Net exposure hedge income (loss presented with "-")

Gains from changes in fair value (loss presented with "-")

Credit impairment loss (loss presented with "-") -487,754.40

Asset impairment loss (loss presented with "-")

Asset disposal income (loss presented with "-")

II. Operating profit ( “-” for loss ) 74,836,699.13 -50,169,417.47

Add: Non-operating revenue 445,377.10

Less: Non-operating expense 4,409,866.22 277,297.63

III. Total profit ( “-” for loss ) 70,872,210.01 -50,446,715.10

Less: Income tax expense

IV. Net profit ( “-” for net loss ) 70,872,210.01 -50,446,715.10

(I) Classified by continuity of operations 70,872,210.01 -50,446,715.10

(II) Classified by ownership of the equity

VI. Other comprehensive income, net of tax (1) Other comprehensive income that will not be subsequently reclassified to profit or loss 1. Changes arising from remeasurement of net liability or net

12 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30 asset of defined benefit plan

2. Shares of other comprehensive income of the investee accounted for using equity method that will not be subsequently reclassified to profit or loss 3. Changes in fair value of other equity instruments investment 4. Changes in the fair value of the company's own credit risk

5. Others (2) Other comprehensive income that will be subsequently reclassified to profit or loss 1. Other comprehensive income of convertible profits and losses under the equity method 2. Changes in fair value of other debt investments 3. Gains and losses from changes in fair value of available-for-sale financial assets 4. The amount of financial assets reclassified into other comprehensive income 5. Held-to-maturity investments are reclassified as gains and losses on available-for-sale financial assets 6. Other credit investment credit impairment provisions

7. Cash flow hedge reserve

8. Foreign currency financial statement translation difference

9.Others

VI. Total comprehensive income 70,872,210.01 -50,446,715.10

VII. Earnings per share:

1. Basic earnings per share

2. Diluted earnings per share

13 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

5. Consolidated Statement of Cash Flows Unit: yuan Items Half year of 2019 Half year of 2018

I. Cash flows from operating activities:

Cash receipts from the sale of goods and the rendering of services 2,950,391,800.81 2,988,657,865.50

Net increase in customer deposits and interbank deposits

Net increase in borrowing from the central bank

Net increase in funds borrowed from other financial institutions

Cash received from the premium of the original insurance contract

Net cash received from reinsurance

Net increase in household savings and investment funds

Cash receipts from interest, fees and commissions

Net increase in borrowing funds

Net increase in repurchase funds

Net cash received for buying and selling securities

Cash receipts from tax refunds 134,055.70 1,094,935.79

Cash receipts from other operating activities 87,283,759.63 63,332,307.54

Subtotal cash inflow from operating activities 3,037,809,616.14 3,053,085,108.83

Cash payments for goods and services 1,177,312,138.73 1,158,293,388.78

Net increase in customer loans and advances

Net increase in central bank and interbank deposits

Cash payments for the original insurance contract

Net increase in financial assets held for trading purposes

Net increase in the funds removed

Cash payments for interest, fees and commissions

Cash payments for dividend policies

Cash payments to and on behalf of employees 1,771,443,962.32 1,544,649,709.83

Cash payments for taxes 163,957,782.83 140,147,576.37

Cash payments for other operating activities 528,620,767.58 510,940,304.45

Subtotal cash outflow from operating activities 3,641,334,651.46 3,354,030,979.43

Net cash flow from operating activities -603,525,035.32 -300,945,870.60

II. Cash flows from investing activities:

14 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Cash receipts from disposal of investments 11,054,478.50 114,512,291.00

Cash receipts from gains on investments 38,645,254.30 13,356,830.68 Net cash receipts from disposals of fixed assets, intangible assets 1,512,163.12 351,940.00 and other long-term assets Net cash receipts from disposals of subsidiaries and other business units Other cash receipts relating to investing activities 258,126,022.31 109,167,894.99

Subtotal of cash inflows from investment activities 309,337,918.23 237,388,956.67 Cash payments to acquire and construct fixed assets, intangible 251,021,291.56 462,385,718.62 assets and other long-term assets Cash payments to investments 195,811,054.28 1,179,498,727.72

Net increase in pledged loans Net cash payments for acquisitions of subsidiaries and other business 235,777,930.82 397,944,013.05 units Cash payments relating to other investing activities 611,156,865.92 268,308,563.15

Subtotal of cash outflows from investment activities 1,293,767,142.58 2,308,137,022.54

Net cash flows from investing activities -984,429,224.35 -2,070,748,065.87

III. Cash flows from financing activities:

Cash receipts from capital contribution 1,151,000.00 14,750,000.00 Including: Cash receipts from subsidiary receives minority 1,151,000.00 14,750,000.00 shareholders’ investment Cash receipts from borrowings 4,053,973,763.55 3,033,564,883.52

Cash receipts from issue of bonds 1,333,670,832.17 497,500,000.00

Cash receipts relating to other financing activities 40,850,000.00 35,500,000.00

Subtotal of cash inflows from financing activities 5,429,645,595.72 3,581,314,883.52

Cash repayments of amounts borrowed 3,650,945,763.59 1,583,909,947.67 Cash payments for distribution of dividends, profits or interest 245,072,185.25 217,984,387.62 expenses Including: Dividends and profits paid by a subsidiary to minority 46,779,766.05 13,607,994.44 shareholders Cash payments relating to other financing activities 349,084,797.85 308,637,414.77

Subtotal of cash outflows from financing activities 4,245,102,746.69 2,110,531,750.06

Net cash flows from financing activities 1,184,542,849.03 1,470,783,133.46 IV. Effect of foreign exchange rate changes on cash and cash -11,700,188.86 84,321.53 equivalents V. Net increase in cash and cash equivalents -415,111,599.50 -900,826,481.48

Add: Opening balance of cash and cash equivalents 2,390,222,654.49 2,390,117,639.69

VI. Closing balance of cash and cash equivalents 1,975,111,054.99 1,489,291,158.21

Legal representative: Yu Rong Principal in charge of accounting: Yin Jianchun

15 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Head of accounting department: Yin Jianchun

6. Parent Company Statement of Cash Flows Unit: yuan Item Half year of 2019 Half year of 2018

I. Cash flows from operating activities: Cash receipts from the sale of goods and the rendering of 7,350,000.00 services Receipts of taxes refunds

Cash receipts relating to other operating activities 1,353,998,880.83 1,644,131,228.33

Subtotal of cash inflows from operating activities 1,361,348,880.83 1,644,131,228.33

Cash payments for goods purchased and services received 149,600.00

Cash payments to and on behalf of employees 659,333.06 337,484.05

Cash payments for taxes 13,928.10 1,390,280.00

Cash payments relating to other operating activities 533,857,410.38 1,144,661,908.22

Subtotal of cash outflows from operating activities 534,680,271.54 1,146,389,672.27

Net cash flows from operating activities 826,668,609.29 497,741,556.06

II. Cash flows from investing activities:

Cash receipts from disposal of investments

Cash receipts from gains on investments 308,522,311.11 201,277,777.78 Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets Net cash receipts from disposals of subsidiaries and other business units Cash receipts relating to other investing activities

Subtotal of cash inflows from investment activities 308,522,311.11 201,277,777.78 Cash payments to acquire and construct fixed assets, 1,859,980.54 2,804,683.29 intangible assets and other long-term assets Cash payments to investments 835,505,000.00 654,010,000.00 Net cash payments for acquisitions of subsidiaries and other business units Cash payments relating to other investing activities

Subtotal of cash outflows from investment activities 837,364,980.54 656,814,683.29

Net cash flows from investing activities -528,842,669.43 -455,536,905.51

III. Cash flows from financing activities:

Cash receipts from capital contribution

16 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Cash receipts from borrowings

Cash receipts from issue of bonds 497,500,000.00

Cash receipts relating to other financing activities

Subtotal of cash inflows from financing activities 497,500,000.00

Cash repayments of amounts borrowed 470,000,000.00 Cash payments for distribution of dividends, profits or 61,290,763.90 174,531,136.65 interest expenses Other cash payments relating to financing activities 156,648,939.60

Subtotal of cash outflows from financing activities 217,939,703.50 644,531,136.65

Net cash flows from financing activities -217,939,703.50 -147,031,136.65 IV. Effect of foreign exchange rate changes on cash and 9,139,920.25 cash equivalents V. Net increase in cash and cash equivalents 89,026,156.61 -104,826,486.10

Add: Opening balance of cash and cash equivalents 67,417,904.15 302,916,906.10

VI. Closing balance of cash and cash equivalents 156,444,060.76 198,090,420.00

17 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

7. Consolidated Statement of Changes in Shareholders' Equity Current Amount Unit: yuan Half year of 2019

Total equity attributable to the shareholders of the parent company

Other equity Minority Items General Total owner's instruments Less: Other Special shareholders' Share Capital Surplus risk Undistribute Oth equity Preferr treasury comprehensi reserve Subtotal equity Capital Perpetu Othe reserve reserve prepara d profit ers ed shares ve income s al bond rs tion stock I. Balance at 3,121,566,95 1,331,871,192 83,515,021.3 71,934,33 2,123,783,9 6,566,160,265. 729,506,976.4 7,295,667,241. December 31, 518,850.52 6.00 .64 3 9.69 47.53 05 6 51 2018 Add: Changes in 7,557,690.0 accounting 7,557,690.00 147,055.00 7,704,745.00 0 policies Correction of prior years’ errors Combination of businesses under common control Others II. Balance at 3,121,566,95 1,331,871,192 83,515,021.3 71,934,33 2,131,341,6 6,573,717,955. 729,654,031.4 7,303,371,986. January 1, 518,850.52 6.00 .64 3 9.69 37.53 05 6 51 2019 III. Increase / (decrease) in -100,673,024. 130,087,955. -148,255,09 -379,245,801. -352,294,903. the current -229,729.53 26,950,897.56 52 72 1.67 44 88 year ("-" for losses) (1) Total -229,729.53 16,837,786. 16,608,056.47 28,122,211.24 44,730,267.71

18 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

comprehensive 00 income (2) Shareholders' -100,673,024. 130,087,955. -230,760,980. -179,379,559. contributions 51,381,421.20 52 72 24 04 and reduction in capital 1. Capital contribution 1,151,000.00 1,151,000.00 from shareholders 2. Capital contribution from other equity instruments holders 3. Share-based payment recognized in shareholders' equity -100,673,024. 130,087,955. -230,760,980. -180,530,559. 4. Others 50,230,421.20 52 72 24 04 (3) Profit -165,092,87 -165,092,877. -52,552,734.8 -217,645,612. distribution 7.67 67 8 55 1. Appropriation to surplus reserve 2. Appropriation to general risk reserve 3. Profit -165,092,87 -165,092,877. -52,552,734.8 -217,645,612. distribution to 7.67 67 8 55 shareholders

19 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

4. Others 4) Internal carry-forward of shareholders' equity 1. Transfer from capital reserve to capital (or share capital) 2. Transfer from surplus reserve to capital (or share capital) 3. Surplus reserve used to offset accumulated losses 4. Transfer of changes as a result of remeasurement of defined benefit plan liability 5.Other comprehensive income carried forward retained earnings 6. Others (5)Special reserve 1. Current

20 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

appropriation

2. Current utilization (6)Others IV. Balance at 3,121,566,95 1,231,198,168 213,602,977. 71,934,33 1,983,086,5 6,194,472,153. 756,604,929.0 6,951,077,082. 289,120.99 June 30, 2019 6.00 .12 05 9.69 45.86 61 2 63

The amount of the previous period Unit: yuan Half year of 2018

Total equity attributable to the shareholders of the parent company

Items Other equity Other general Minority Less: Special Total owner's Share instruments Capital comprehen Surplus risk undistributed shareholders' treasury reserve Others Subtotal equity Capital reserve sive reserve preparati profit equity Preferre Perpetu Other shares s d stock al bond s income on I. Balance at 2,601,305,79 2,357,463,08 38,771,03 1,498,909,51 6,496,527,37 406,344,718.2 6,902,872,091.9 December 31, 77,933.67 7.00 9.85 4.85 8.25 3.62 8 0 2017 Add: Changes in accounting 0.00 policies Correction of prior 0.00 years’ errors Combination of 87,491,200.0 -32,545,303. 54,945,896.4 businesses under 53,728,740.50 108,674,636.93 0 57 3 common control Others 0.00 II. Balance at 2,601,305,79 2,444,954,28 38,771,03 1,466,364,21 6,551,473,27 460,073,458.7 7,011,546,728.8 77,933.67 January 1, 2018 7.00 9.85 4.85 4.68 0.05 8 3

21 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

III. Increase / (decrease) in the 520,261,159. -670,148,549 28,736,410.9 -120,904,50 101,042,587.9 246,471.42 -19,861,920.49 current year ("-" 00 .82 3 8.47 8 for losses) (1) Total 158,801,700. 159,048,172. comprehensive 246,471.42 45,168,203.76 204,216,375.96 78 20 income (2) Shareholders’ -149,887,390 -149,887,39 contributions 65,087,196.70 -84,800,194.12 .82 0.82 and reduction in capital 1. Capital contribution from 14,750,000.00 14,750,000.00 shareholders 2. Capital contribution from other equity 0.00 instruments holders 3. Share-based payment recognized in 0.00 shareholders' equity -149,887,390 -149,887,39 4. Others 50,337,196.70 -99,550,194.12 .82 0.82 (3) Profit -130,065,289 -130,065,28 -9,212,812.48 -139,278,102.33 distribution .85 9.85 1. Appropriation to 0.00 surplus reserve 2. Appropriation to general risk 0.00 reserve

22 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

3. Profit -130,065,289 -130,065,28 distribution to -9,212,812.48 -139,278,102.33 .85 9.85 shareholders 4. Others 0.00 (4) Internal carry-forward of 520,261,159. -520,261,159 0.00 shareholders' 00 .00 equity 1. Transfer from capital reserve to 520,261,159. -520,261,159 0.00 capital (or share 00 .00 capital) 2. Transfer from surplus reserve to 0.00 capital (or share capital) 3. Surplus reserve used to offset 0.00 accumulated losses 4. Transfer of changes as a result of 0.00 remeasurement of defined benefit plan liability 5.Other comprehensive income carried 0.00 forward retained earnings 6. Others 0.00 (5)Special 0.00 reserve

23 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

1. Current 0.00 appropriation 2. Current 0.00 utilization (6)Others 0.00 IV. Balance at 3,121,566,95 1,774,805,74 38,771,03 1,495,100,62 6,430,568,76 561,116,046.7 6,991,684,808.3 December 31, 324,405.09 6.00 0.03 4.85 5.61 1.58 6 4 2018

Legal representative: Yu Rong Principal in charge of accounting: Yin Jianchun Head of accounting department: Yin Jianchun

24 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

8. Parent Company Statement of Changes in Shareholders' Equity The current amount Unit: yuan Half year of 2019

Other equity instruments Other Minority Items Less: treasury Special Surplus Undistributed Total owner's Share capital Preferred Perpetual Capital reserve comprehensive shareholders' Others shares reserves reserve profit equity stock bond income equity I. Balance at December 31, 3,121,566,956.00 5,047,465,527.61 83,515,021.33 136,626,800.32 252,638,671.77 8,474,782,934.37 2017 Add: Changes in accounting policies Correction of prior years’ errors Others II. Balance at January 1, 3,121,566,956.00 5,047,465,527.61 83,515,021.33 136,626,800.32 252,638,671.77 8,474,782,934.37 2018 III. Increase / (decrease) in the current 130,087,955.72 -94,666,044.76 -224,754,000.48 year ("-" for losses) (1) Total comprehensive 70,872,210.01 70,872,210.01 income (2) Shareholders' 130,087,955.72 -130,087,955.72 contributions and reduction

25 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

in capital

1. Capital contribution from shareholders 2. Capital contribution from other equity instruments holders 3. Share-based payment recognized in shareholders' equity 4. Others 130,087,955.72 -130,087,955.72 (3) Profit -165,092,877.67 -165,092,877.67 distribution 1. Appropriation to surplus reserve 2. Appropriation to general risk -165,092,877.67 -165,092,877.67 reserve 3. Profit distribution to shareholders 4. Others (4) Internal carry-forward of shareholders'

26 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

equity

1. Transfer from capital reserve to capital (or share capital) 2. Transfer from surplus reserve to capital (or share capital) 3. Surplus reserve used to offset accumulated losses 4. Transfer of changes as a result of remeasurement of defined benefit plan liability 5. Others (5)Special reserve 1. Current appropriation 2. Current utilization (6)Others -445,377.10 -445,377.10 IV. Balance at 3,121,566,956.00 5,047,465,527.61 213,602,977.05 136,626,800.32 157,972,627.01 8,250,028,933.89 June 30, 2019

27 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

The amount of the previous period Unit: yuan Half year of 2018

Other equity instruments Less: Other Minority Items Special Surplus Undistributed Share capital Preferred Perpetual Capital reserve treasury comprehensive shareholders' Total owner's equity Others reserves reserve profit stock bond shares income equity I. Balance at December 31, 2,601,305,797.00 5,899,502,811.40 114,351,447.26 202,556,835.55 8,817,716,891.21 2017 Add: Changes in accounting policies Correction of prior years’ errors Others II. Balance at January 1, 2,601,305,797.00 5,899,502,811.40 114,351,447.26 202,556,835.55 8,817,716,891.21 2018 III. Increase / (decrease) in the current 520,261,159.00 -520,261,159.00 -180,648,390.11 -180,648,390.11 year ("-" for losses) (1) Total comprehensi -50,446,715.10 -50,446,715.10 ve income (2)

28 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

Shareholders' contributions and reduction in capital 1. Capital contribution from shareholders 2. Capital contribution from other equity instruments holders 3. Share-based payment recognized in shareholders' equity 4. Others (3) Profit -130,065,289.85 -130,065,289.85 distribution 1. Appropriation to surplus reserve 2. Appropriation -130,065,289.85 -130,065,289.85 to general risk reserve 3. Profit distribution to shareholders

29 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

4. Others 520,261,159.00 -520,261,159.00 (4) Internal carry-forward of 520,261,159.00 -520,261,159.00 shareholders' equity 1. Transfer from capital reserve to capital (or share capital) 2. Transfer from surplus reserve to capital (or share capital) 3. Surplus reserve used to offset accumulated losses 4. Transfer of changes as a result of remeasuremen t of defined benefit plan liability 5. Others (5)Special reserve 1. Current appropriation 2. Current

30 Meinian Onehealth Healthcare Holdings Co., Ltd. Semi-annual financial report 2019.6.30

utilization

(6)Others -136,385.16 -136,385.16 IV. Balance at December 31, 3,121,566,956.00 5,379,241,652.40 114,351,447.26 21,908,445.44 8,637,068,501.10 2018

31 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to the financial statements for the period from January to June 2019 (Unless otherwise stated, amount shall be expressed in RMB.) I. General Information Meinian Onehealth Healthcare Holdings Co., Ltd. (hereinafter referred to as “the Company”, “Company” or “the Group”), formerly known as Jiangsu Sanyou Group Co., Ltd., was incorporated by merger with Nantong Sanhe Fashion Co., Ltd. The Company was established on January 22, 1991. As at December 31, 2014, the Company’s registered capital and paid-in capital was RMB 224.25 million. According to the profit distribution plan as approved by the 2014 Annual General Meeting of Shareholders, 2.40 bonus shares were issued for every 10 shares to all shareholders on June 3, 2015 based on the total share capital of 224.25 million shares. After the distribution of dividends, the Company’s total share capital was increased to RMB 278.07 million. According to the Reply on the Major Assets Restructuring of Jiangsu Sanyou Group Co., Ltd., Its Purchase of Assets and Raising of Supporting Funds by Issuing Shares to Shanghai Tianyi Investment (Group) Co., Ltd. etc. (Zhengjianxuke [2015]No. 1718) as issued and verified by Securities Regulatory Commission on July 20, 2015, Jiangsu Sanyou Group Co., Ltd. (hereinafter referred to as “Jiangsu Sanyou”) issued shares to 24 institutional shareholders i.e. the former shareholder of Meinian Onehealth Healthcare (Group) Co., Ltd. (hereinafter referred to as “Meinian Onehealth”) Shanghai Tianyi Investment (Group) Co., Ltd. (hereinafter referred to as “Tianyi Investment”) and 79 individual shareholders i.e. Yu Rong and Xu Ke to purchase assets (hereinafter referred to as “major replacement of assets and purchase of assets by issuance of shares”). As at August 10, 2015, the former shareholders of Meinian Onehealth had transferred their shares to the Company. After the major replacement of assets and issuance of shares to buy assets, the share capital increased by RMB 919,342,463 and the Company’s total share capital was increased to RMB 1,197,412,463. According to the approval document (Zhengjianxuke [2015] No. 1718) as mentioned above, the number of non-public common shares (A shares) as issued by the Company in raising supporting funds shall not exceed 60,975,609 shares. As at August 25, 2015, the Company has issued RMB 13,328,890 common shares in

32 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 raising supporting funds. After the increase of capital, the total share capital of the Company was increased to RMB 1,210,741,353. According to the profit distribution plan approved by the 2015 Annual General Meeting of Shareholders, 10 bonus shares were issued for every 10 shares to all shareholders on June 13, 2016 based on the total share capital of 1,210,741,353 shares. After the grant of extra shares, the Company’s total share capital was increased to RMB 2,421,482,706. According to the resolution passed by the second Extraordinary General Meeting of Shareholders in 2016 and the Reply on Approving the Issuance of Shares by Meinian Onehealth Healthcare Holdings Co., Ltd. to Shanghai Weitu Investment Center (limited partnership) etc. in Purchasing Assets and Raising Supporting Fund (Zhengjianxuke [2017] No. 1764) as issued by China Securities Regulatory Commission, the Company issued 86,677,923 shares to Shanghai Weitu Investment Center (limited partnership), 59,383,728 shares to Shanghai Tianyi Assets Management Co., Ltd. and 4,800,623 shares to Beijing Dongsheng Kangye Investment and Consultation Co., Ltd. in order to buy the shares of Ciming Health Physical Examination Management Group Co., Ltd. (hereinafter referred to as “Ciming Health Physical Examination”). As at October 11, 2017, the share capital of the Company increased by RMB 150,862,274 in issuing shares to buy assets. After the increase of capital, the Company’s total share capital was increased to RMB 2,572,344,980. According to the document of Zhengjianxuke [2017] No.1764 mentioned above, supporting fund issued by the Company shall not exceed 39,906,103 non-public shares to purchase the asset. As at November 6, 2017, the Company has issued 28,960,817 non-public RMB common shares. After increase of capital, the Company’s total share capital was increased to RMB 2,601,305,797. According to the decisions of 2017 Annual General Meeting of Shareholders, 2 bonus shares were issued for every 10 shares to all shareholders on May 15, 2018 based on the total share capital of 2,601,305,797 shares. After the distribution of dividends, the Company’s total share capital was increased to RMB 3,121,566,956. The Company’s unified social credit code is 91320600608304061J; registered address: No.218 East Renmin Road, Nantong, Jiangsu; Legal representative: Yu Rong. Business scope of the Company: engagement in technological development,

33 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 technological consultation, technology transfer and technical services in the professional field of medical technologies; investment management; health management and consultation (other than medical activities and psychological counseling); (Where any items are subject to approval in accordance with law, such operation activities may be performed only after obtainment of approval from relevant authorities). The Company has a total of 271 subsidiaries included in the scope of consolidation from January to June 2019. See Note 8 “Equity in Other Entities” for details. The scope of consolidation of the Company for the current year increased by 33 compared with the previous year, and the number of mergers was reduced by one. For details, please refer to Note 7 “Changes in the scope of consolidation”. The Company and its subsidiaries are mainly engaged in Physical Examinations.

II. Basis of Preparation The financial statements of the Company are prepared, on a going concern basis, to recognize and measure the transactions and events that have occurred in accordance with the requirements of Accounting Standards for Business Enterprises – Basic Standards issued by the Ministry of Finance (Release of No.33 Order of the Ministry of Finance and Amendment to No.76 Order of the Ministry of Finance, and 42 specific accounting standards, and guidance for the application of accounting standards, the interpretation for Accounting Standards for Business Enterprises and other relevant provisions (hereinafter collectively referred to as “ASBE”) as well as the disclosure requirements by China Securities Regulatory Commission in Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15 General Provisions on Financial Reporting (Revised in 2014). According to ASBE, the Company adopts accrual basis in accounting. The financial statements shall be measured at the historical cost except for some financial instruments. If asset impairment incurred, related provision is to be provided according to the ASBE.

III. Statement of Compliance with ASBE The financial statements have been prepared in accordance with the

34 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Accounting Standards for Business Enterprises, present truly and completely, the Company's financial position as at December 31, 2018, performance results and cash flows for the year then ended. In addition, the Company's financial statements are in compliance in all material aspects with the requirements on financial statements and disclosures in Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15 General Provisions on Financial Reporting (Revised in 2014) by the China Securities Regulatory Commission.

IV. Significant Accounting Policies and Accounting Estimates The Company and its subsidiaries are engaged in physical examinations, technology development in medical industries, consulting, service, investment management, health management consulting, etc. Based on the characteristics of the Company's actual production and operation, the Company and its subsidiaries have determined several specific accounting policies and accounting estimates for revenue recognition and other transactions and events according to ASBE. For more details, please see Note IV.22 “Revenue” for detailed description. For the description of the significant accounting judgments and estimates made by management, please refer to Note IV.27 “Significant Accounting Judgment and Estimates”. 1. Accounting Period Accounting periods are classified into annual periods and interim periods. An interim period is a reporting period shorter than a complete accounting year. The Company has adopted the calendar year as its accounting year, i.e. from January 1, to December 31. 2. Operating Cycle 12 months is assumed by the Company as the operating cycle to classify the liquidity of assets and liabilities. 3. Functional Currency RMB is the currency of the primary economic environment in which the Company and its domestic subsidiaries operate. The Company and its domestic subsidiaries choose RMB as the functional currency. The Company’s foreign subsidiaries choose USD and HKD as the functional currency according to the primary economic environment in which the Company’s foreign subsidiaries operate. The financial statements are prepared in RMB.

35 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

4. Accounting Treatment of Business Combination under the Common Control and not under the Common Control A business combination is a transaction or event that brings together two or more separate enterprises into one reporting entity. Business combinations are classified into business combinations under common control and business combinations not under common control. (1) Business combination under common control A business combination under common control is a business combination in which all the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory. For a business combination under common control, the absorbing party is the party that acquires the control right of other involved enterprises on combination date. The combined party is other enterprises involved in the combination. The combination date refers to the date on which the absorbing party effectively obtains control of the party being absorbed. Assets and liabilities that are obtained in a business combination by the absorbing party shall be measured at their carrying amounts as recorded by the party being absorbed on the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate face value of shares issued as consideration) shall be adjusted to the capital reserve (share premium). If the capital reserve (share premium) is not sufficient to absorb the difference, excess shall be adjusted against retained earnings. Cost incurred by the absorbing parties that are directly attributable to the combination shall be charged against profit or loss in the period in which the cost is incurred. (2) Business combination not under common control A business combination not under common control is a business combination in which all the combining enterprises are not ultimately controlled by the same party or parties before and after the combination. For a business combination not under common control, the party that, on the acquisition date, obtains control of other enterprises participating in the combination is the acquirer. Other enterprises participating in the combination are the acquiree. Acquisition date is the date on which the acquirer effectively obtains control of the acquiree.

36 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

For a business combination not under common control, combination cost is the aggregate of the fair value of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree on the acquisition date. Service expense including audit fees, legal fees, valuation and consulting fees, and other administrative expenses attributable to the business combination shall be charged against profit or loss in the period in which the service expense is incurred. The transaction expense of the equity securities or debt securities issued by the acquirer as combination consideration shall be included in the initial cost of equity securities or debt securities issued. The contingent consideration in the business combination shall be included into the combination cost at its fair value on the acquisition date. In case that within 12 months after the acquisition date, any new or further evidence is found regarding the existing situation as on the acquisition date, which causes adjustment on contingent consideration, goodwill shall be adjusted accordingly. The combination cost incurred by the acquirer and the identifiable net assets acquired in the combination are initially measured at fair value on the acquisition date. The positive difference between the combination cost and the fair value of the identifiable net assets it obtains from the acquiree on the acquisition date is recognized as goodwill. As for the negative difference between the combination cost and the fair value of the identifiable net assets it obtains from the acquiree, it is necessary to review the measurement of the fair values of the identifiable assets, liabilities and contingent liabilities it obtains from the acquiree as well as the combination cost. If the combination cost is still less than the fair value of the identifiable net assets it obtains from the acquiree, the difference shall be recorded through profit or loss for the current period. Where the deductible temporary difference of the acquiree obtained by the acquirer is not recognized on the ground that the recognition condition of deferred tax asset has not been meet on the acquisition date, within 12 months after the acquisition date, if further information is obtained to indicate that the relevant situation on the acquisition date existed and the economic interest brought by the deductible temporary difference of the acquirer on the acquisition date is expected to be realized, the amount of the difference shall be recognized as relevant deferred tax asset and goodwill shall be deducted by the same amount. If the goodwill is insufficient to be deducted, the difference is recognized through profit or loss for the

37 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 current period; otherwise, the difference recognized as the deferred tax asset which is relate to business combination shall be recognized through profit or loss for the current period. For the business combinations not under common control and completed through multiple transactions, according to Notice of the Ministry of Finance of the People’s Republic of China on Issuing Interpretations No.5 on Accounting Standards for Business Enterprises (Caikuai [2012] No.19) and the criteria about “package deal” in Article 51 of Accounting Standards for Business Enterprises No.33---Consolidated Financial statements (refer to Note IV, 5 (2), whether these multiple transactions are included in “package deal” shall be judged. If they are included in “package deal”, the accounting treatment shall be conducted in accordance with the descriptions of previous paragraphs of this Part and Note IV. 13 “Long-term Equity Investment”; if they are not included in “package deal”, relevant accounting treatment shall be conducted differently in separate financial statements and consolidated financial statements. In separate financial statements, the sum of the book value of the equity investment of the acquiree held before the acquisition date and the investment cost incurred on the acquisition date shall be the initial investment cost of such an investment. If the equity of the acquiree held before the acquisition date involves other comprehensive income, when handling this project, relevant accounting treatment for other comprehensive income shall be conducted on the same base as the acquiree disposes of relevant assets and liabilities directly (all shares shall be transferred into investment income for the current period, except the corresponding shares changed by net liabilities or net assets in benefit plan redesigned by the acquiree under equity method). In consolidated financial statements, the equity of the acquiree held before the acquisition date shall be remeasured at fair value of the equity on the acquisition date, and the difference between fair value and book value shall be recorded in the current income from investment. If the equity of the acquiree held before the acquisition date involves other comprehensive income, relevant accounting treatment for other comprehensive income shall be conducted on the same base as the acquiree disposes of relevant assets and liabilities directly (all shares shall be transferred into investment income for the current period which consists of the acquisition date, except the corresponding shares changed by net liabilities or net

38 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 assets in benefit plan redesigned by the acquiree under equity method). 5. Preparation Method for Consolidated Financial Statements (1) The principle for determining the scope of consolidated financial statements The scope of consolidated financial statements shall be determined on the basis of control. Control means the Company has power over the investee, by participating in the relevant activities of the investee and has variable returns, and the ability to use the power to influence the return amount of the investee. The combination scope includes the Company and all subsidiaries. Subsidiary is the corporate body controlled by the Company. The Company will reassess combination scope if relevant elements on the control definition have changed due to the change of the relevant facts and circumstances. (2) The method for preparation of consolidated financial statements From the date the Company obtains the actual control over a subsidiary’s net assets and production operation decision-making power, the Company includes the subsidiary into the consolidated scope; from the date the Company loses control over a subsidiary, the subsidiary shall cease to be consolidated. For a subsidiary disposed of, the operating results and cash flows before the disposal date are appropriately included in the consolidated statement of income and the consolidated statement of cash flow; for a subsidiary disposed during the current period, no adjustments are made to the opening balance of the consolidated balance sheet. Where a subsidiary is acquired through a business combination not under common control, the subsidiary’s operating results and cash flows after the combination date are appropriately included in the consolidated statement of income and the consolidated statement of cash flow and no adjustments is made to the opening balance and comparative figures of the consolidated financial statements. Where a subsidiary is acquired through a business combination under common control, the subsidiary’s operating results and cash flows from the beginning of the reporting period to the combination date are appropriately included in the consolidated statement of income and the consolidated statement of cash flow and adjustments is made to the comparative figures of the consolidated financial statements accordingly. When preparing the consolidated financial statements, if subsidiary and the Company adopt the inconsistent accounting policies or accounting periods, the

39 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Company shall adjust the financial statements of the subsidiary based on its own accounting period and accounting policies. For a business combination not under common control, the subsidiary shall be adjusted based on the fair value of the identifiable net asset and adjustments to financial statements shall be made. All material balances, transactions, and unrealized profits within the scope of consolidated financial statements shall be eliminated in the preparation of consolidated financial statements. Shareholders’ equity and current net profit or loss of subsidiary which not attributable to the Company shall be solely presented as minority shareholders’ equity of consolidated balance sheet and net profit of consolidated statement of income, respectively. The amount of current profit or loss of subsidiary is attributable to minority shareholders’ equity; it should be presented as “Minority shareholders’ equity” under the net profit consolidated statement of income. If the losses of subsidiary exceed the shareholders’ portion of the opening balance of shareholders’ equity of the subsidiary, the excess shall be allocated against the non-controlling interests. If the Company loses control over a subsidiary due to the disposal of a portion of an equity investment or other reasons, the remaining equity shall be remeasured at its fair value at the date when control is lost. The difference obtained through the total amount of consideration received from the disposal of equity and the fair value of the remaining equity, less the share of net assets of the former subsidiary calculated continuously from the acquisition date or the combination date based on the previous shareholding proportion, shall be recognized as investment income for the current period when control is lost. Other comprehensive income related to original subsidiary will be transferred into the current profit and loss in investment at the date the Company lost control over the subsidiary. (That is, in addition to the remeasurement of changes in the net liabilities or net assets of the defined benefit plan in the original subsidiary, the rest will be transferred into investment income for the current period). After that, for the remaining part of this part of equity, according to Accounting Standards For Enterprise No.2-Long Term Equity Investment or Accounting Standards For Enterprises No.22-Recognition And Measurement Of Financial Instrument and related regulation for subsequent measurement, and there are details in Notes IV.13 “Long-term capital investment” or Notes IV.9 “Financial instruments”.

40 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

If the Company loses control over a subsidiary in multiple transactions in which it disposes equity investments in the subsidiary in stages, the Company is required to determine whether each transaction shall be included in a package deal. If one or more than one of the following conditions are met by all of the terms and conditions of the transactions and their economic effects in regard to the disposal of equity investment in subsidiaries, the accounting treatment for these transactions shall be conducted as a package deal: ①These transactions are carried out simultaneously or in the condition that each part will be impacted; ②These transactions as a whole will achieve a complete business results; ③The occurrence of one transaction are dependent on at least one transaction; ④ One transaction may seem to be uneconomic when considered solely, but it can be recognized as economic when considered with other transactions. If one transaction is not included in the package transaction, each of transaction will be according to the “Partly disposal of subsidiaries of a long-term equity investment without losing control” and each of the transaction will respectively follow the part disposal subsidiaries of a long-term equity investment under the control not lost (refer to Notes IV. 13. (2) ④) and “losing control due to disposal of part of equity investments or other reasons” of the original subsidiaries suited for the principle as accounting treatment. If disposal subsidiary Company equity investment at other each transaction belonged to a package transaction until Company losing control, thus each transaction shall be dealt with accounting treatment in which each transaction is recognized as one that dispose of subsidiaries until lose control. However, the difference between the disposals prices of prior before control lost with Company net asset shall be recognized as other comprehensive income, the profit and loss of current year shall be transferred when control is lost. 6. Classification and Accounting Treatment of Joint Arrangements and Joint Operation A Joint arrangement is an arrangement of which two or more parties have joint control. The Company divides joint venture arrangement into joint operation and joint venture based on the rights enjoyed and obligations assumed in joint venture arrangements. A joint operation is a joint arrangement whereby the Company has rights to the assets and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the Company has rights to the net assets of the arrangement.

41 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

The Company adopts equity method for accounting of investment of joint ventures and disposes according to the accounting policy described in the Note IV.13 (2) ② “Long-term Equity Investment under Equity method”. As a joint venture party, for joint operation, the Company recognizes the assets held solely and liabilities assumed solely and recognizes the Company’s share of any assets held jointly and liabilities assumed jointly; recognizes the Company’s revenue from the sale of its share of the output arising from the joint operation; recognizes the Company’s share of the revenue from the sale of the output by the joint operation; recognizes the expenses incurred solely by the Company and the Company’s share of any expenses incurred jointly. When the Company invests or sells assets towards joint operation as a party of the joint-venture (this asset does not constitute business, the same below), or upon purchasing assets by joint operation but before selling such assets to the third party, the Company only recognizes the part belonging to other participants of joint operation in profit or loss caused by this transaction. Where such assets belong to the impairment losses for assets according to Accounting Standard for Business Enterprises No. 8 – Impairment of Assets and other regulations, the Company will recognize losses in full amount for investment or sales of assets from the Company to joint operation. For assets purchased by the Company from joint operation, the Company will recognize these losses according to its shareholding proportion. 7. Recognition Criteria for Cash and Cash Equivalents The Company’s cash and cash equivalents comprise cash on hand, deposits that can be readily withdrawn on demand, short-term (usually due within three months from the purchasing date) and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. 8. Foreign Currency Transaction and Translation of Foreign Currency Financial Statements (1) Methods for translation of foreign currency For the foreign currency transaction incurred in the Company, the amount in foreign currency shall be translated into the amount in functional currency for initial recognition as per the spot rate on the transaction date (generally refer to the middle rate of foreign exchange rate on the current date announced by the People's Bank of China, the same below); but for foreign exchange businesses and

42 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 transactions involving foreign exchange, the amount in foreign currency shall be translated into the amount in functional currency as per the actual exchange rate for recording. (2) Methods for translation of foreign currency items and foreign currency non-monetary items As for monetary items in foreign currency on the balance sheet date, the amount in foreign currency shall be translated into the functional currency at the spot rate on the balance sheet date; where, the differences arising from the translation shall be recognized through profit or loss for the current period, except that ① differences between foreign exchange incurred from specific borrowings in foreign currency related to assets purchased and construction where capitalization criterion are met shall be treated as per the borrowings capitalization principle; ② differences in foreign exchange arising from other book balance change other than amortized cost for foreign currency monetary items available-for-sale shall be included into other comprehensive incomes. Preparation of consolidated financial statements refer to overseas operations, if there are foreign currency monetary items that substantially constitute the net investment in overseas operation, the exchange difference caused by exchange rate fluctuations shall be recognized in other comprehensive income; When disposal the overseas business, it shall be transferred to the profit or loss for the current period.. The foreign currency non-monetary items measured at historical cost shall continue to be translated at the spot exchange rates at the dates of the transactions. The foreign currency non-monetary items measured at the fair value shall be translated at the spot exchange rate on the date when the fair value has been determined, and the difference between the translated reporting currency amount and the original one shall be treated as the changes in fair value (include changes in exchange rate) and recorded in the current profit or loss or recognized as other comprehensive income. (3) Translation method of financial statements denominated in foreign currency When preparing the consolidated financial statements involving the overseas operation, if there are foreign-currency monetary items essentially constituting a net investment in an overseas operation, the exchange difference incurred due to the exchange rate change shall be presented in other comprehensive income as

43 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

"difference arising from the translation of foreign currency financial statements". When disposing of the overseas operation, the current profit or loss shall be transferred to the profit or loss for the current period. The foreign currency adopted in the foreign exchange statements for overseas operation shall be translated into RMB as per the following methods: Assets and liabilities on the balance sheet shall be translated at the spot rate at the balance sheet date; shareholders’ equity items shall be translated at the spot rate occurred except for the item of “undistributed profit”. The income and expense items in the profit statement shall be translated at the current average rate of the transaction date. The opening undistributed profits are the closing undistributed profits translated at the prior year; for closing undistributed profits, each item shall be calculated and presented as per the translated profits; and the difference between the asset items and the sum of liability items and shareholders' equity items after translation shall be recognized into other comprehensive incomes as translation differences arising on translation of financial statements denominated in foreign currencies. When disposing overseas operation and losing the control, difference arising from the translation of foreign currency financial statements, which are presented under shareholders' equity in the balance sheet and related to the overseas operation, shall be transferred to the profit or loss for the current period in whole or in proportion of the disposed overseas operation. The cash flow of overseas subsidiaries shall be translated at the current average rate on the date of cash flow happening. Effects from change in exchange rate shall be deemed as adjustment item and shall be separately presented in the statement of cash flow. Opening amount and prior year’s actual amount are presented in line with the amount after the translation of prior year financial statements. For the preparation of consolidated financial statements, when the disposal of all shareholders’ equities with respect to the overseas operations by the Company, as well as parts of equity investments, results in a lost in control over the overseas operations, the Company shall convert the difference, which is presented under the items of the owner’s equities of the parent company in the balance sheet and which arises from the translation of foreign currency financial statements relating to this overseas business, into the profit or loss of the current period for disposal. When overseas operational control is retained but the proportion of overseas

44 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 operational equity held by the Company decreases due to disposal of partial equity investments or other reasons, the difference arising from translation of foreign currency relevant to the disposed portion of such overseas operation will be recognized as non-controlling shareholder equity. The difference shall not be transferred into current profit or loss. In the event that the disposed overseas operation involves partial equities of affiliated enterprises and joint ventures, the difference arising from translation of foreign currency relevant to the disposed portion of such overseas operation will be transferred into the current profit or loss for disposal as per the disposed proportion of overseas operation. 9. Financial Instruments A financial asset or liability is recognized when the Company becomes a party to a financial instrument contract. (1) Classification, confirmation and measurement of financial assets According to the business model of managing financial assets and the contractual cash flow characteristics of financial assets, the Company classifies financial assets into: financial assets measured at amortized cost; financial assets measured at fair value and whose changes are included in other comprehensive income; financial assets measured at fair value through profit or loss. Initial recognition of financial assets is measured at fair value. For financial assets measured at fair value through profit or loss, the related transaction expense is directly recognized in profit or loss. For other types of financial assets, related transaction costs are included in the initial recognition amount. For the accounts receivable or notes receivable arising from the sale of products or the provision of labor services that do not contain or consider the significant financing components, the Company shall use the consideration amount that is expected to be received as the initial confirmation amount. ① Financial assets measured at amortized cost The Company's business model for managing financial assets measured at amortized cost is to collect contractual cash flows, and the contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements, i.e. the cash flows generated on a specific date, only payment for the principal and interest based on the outstanding principal amount. The Company's financial assets are subsequently measured at amortized cost using the effective interest method. The gains or losses arising from amortization or

45 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 impairment are recognized in profit or loss. ② Financial assets measured at fair value through other comprehensive income The Company's business model for managing such financial assets is to target both the collection of contractual cash flows and the sale, and the contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements. The Company's financial assets are measured at fair value through profit or loss. The impairment losses or gains, exchange gains and losses and interest income calculated using the effective interest method is recognized in current profit or loss. In addition, the Company has designated certain non-trading equity instrument investments as financial assets measured at fair value through other comprehensive income. The Company's related dividend income of such financial assets is included in the current profit and loss, and changes in fair value are included in other comprehensive income. When the financial assets are derecognized, the accumulated gains or losses previously recognized in other comprehensive income are transferred from other comprehensive income to retained earnings, which are not recognized in profit or loss. ③ Financial assets measured at fair value through current profit or loss The financial assets measured by the fair value of financial assets measured at fair value through profit or losses are recognized in financial assets at fair value through profit or loss. In addition, at the time of initial recognition, the Company designated certain financial assets as financial assets measured at fair value through profit or loss in order to eliminate or significantly reduce accounting mismatch. For such financial assets, the Company adopts fair value for subsequent measurement, and changes in fair value are included in current profit and loss. (2) Classification, recognition and measurement of financial liabilities At the initial recognition, financial liabilities are classified as financial liabilities and other financial liabilities measured at fair value and whose changes are classified into current profits and losses, the related transaction expense is directly recognized in profit or loss. The related transaction expense of other financial liabilities is included in the initial recognition amount. ① Financial liabilities measured at fair value through profit or loss Financial liabilities measured at fair value through profit or loss, including

46 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 financial liabilities (including derivatives that are financial liabilities) and financial liabilities that are designated at fair value through profit or loss. Transactional financial liabilities (including derivatives that are financial liabilities) are subsequently measured at fair value. In addition to related to hedge accounting, changes in fair value are recognized in profit or loss. Financial liability which is measured at fair value through profit or loss, the changes in fair value of the liability arising from changes in the Company's own credit risk are included in other comprehensive income, and when the liability is derecognized, it is recognized in other comprehensive income. The accumulated changes in fair value caused by changes in its own credit risk are transferred to retained earnings. The remaining changes in fair value are included in the current profit and loss. If the effects of changes in the credit risk of these financial liabilities are treated as described above, which may cause or expand the accounting mismatch in the profit or loss, the Company will fully affect the gains or losses of the financial liabilities (including the impact of changes in the credit risk of the enterprise itself). Amount) is included in the current profit and loss. ② Other financial liabilities Financial liabilities classified as financial liabilities measured at amortized cost, except for financial assets transferred to financial assets and financial liabilities, Gains or losses arising from derecognition or amortization are recognized in profit or loss. (3) Confirmation basis and measurement method of financial asset transfer Financial assets that meet one of the following conditions are derecognized: ① the contractual right to receive the cash flow of the financial asset is terminated; ② the financial asset has been transferred, and almost all the risks and rewards of ownership of the financial asset are transferred to the transferor; ③The financial assets have been transferred, although the Company has neither transferred nor retained almost all the risks and rewards of ownership of financial assets, but has given up control of the financial assets. If the enterprise neither transfers nor retains almost all the risks and rewards of ownership of the financial assets and does not waive the control of the financial assets, the relevant financial assets are recognized according to the extent of continuing to be involved in the transferred financial assets, and the relevant liabilities are recognized accordingly. The extent of continuing involvement in the

47 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 transferred financial assets refers to the level of risk that the value of the financial assets changes. If the total transfer of the financial assets meets the conditions for derecognition, the difference between the carrying amount of the transferred financial assets and the combination of the consideration received from the transfer and the accumulated changes in fair value of other comprehensive income is recognized in profit or loss. If the partial transfer of financial assets meets the conditions for derecognition, the book value of the transferred financial assets is apportioned between the derecognized and non-recognized portion at their relative fair value, and the consideration received due to the transfer is The difference between the sum of the accumulated amount of changes in fair value of other comprehensive income and the aforesaid carrying amount of the combination is recognized in profit or loss. When the Company transfers financial assets sold by recourse, or endorses the financial assets held, it is necessary to determine whether almost all the risks and rewards of ownership of the financial assets have been transferred. If almost all the risks and rewards of ownership of the financial assets have been transferred to the transferee, the financial assets are derecognized; if almost all the risks and rewards of ownership of the financial assets are retained, the financial assets are not derecognized; If you do not retain almost all the risks and rewards of ownership of financial assets, continue to judge whether the Company retains control over the assets and conduct accounting treatment according to the principles described in the preceding paragraphs. (4) De-recognition of financial liabilities If the current obligation of a financial liability (or part of it) has been discharged, the Company derecognizes the financial liability (or part of the financial liability). The Company (borrower) enters into an agreement with the lender to replace the original financial liability in the form of new financial liabilities, and the new financial liabilities are substantially different from the original financial liabilities, and the original financial liabilities are terminated while a new financial liability is recognized. If the Company makes substantial changes to the contractual terms of the original financial liabilities (or a part thereof), the original financial liabilities are terminated and the new financial liabilities are recognized in accordance with the revised terms.

48 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

If the financial liability (or a part thereof) is derecognized, the difference between the carrying amount and the consideration paid (including the transferred non-cash assets or liabilities assumed) is recognized in profit or loss. (5) Offset of financial assets and financial liabilities When the Company has the statutory right to offset the financial assets and financial liabilities of the confirmed amount, and the legal rights are currently enforceable, and the Company plans to settled with net amount or simultaneously realize the financial assets and pay off the financial liabilities. Financial assets and financial liabilities are presented in the balance sheet as net offsets. In addition, financial assets and financial liabilities are presented separately in the balance sheet and are not offset. (6) Method for determining the fair value of financial assets and financial liabilities Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly transaction that occurs on the measurement date. Where there is an active market for financial instruments, the Company uses quoted prices in an active market to determine its fair value. Quotations in an active market refer to prices that are readily available from exchanges, brokers, industry associations, pricing services, etc., and represent the prices of market transactions that actually occur in an arm's length transaction. If there is no active market for financial instruments, the Company uses valuation techniques to determine its fair value. Valuation techniques include reference to prices used in recent market transactions by parties familiar with the situation and voluntary transactions, current fair value of other financial instruments that are substantially identical, discounted cash flow methods, and option pricing models. At the time of valuation, the Company adopts valuation techniques that are applicable in the current circumstances and that are sufficiently supported by data and other information to select the characteristics of the assets or liabilities to be considered in the transactions of the relevant assets or liabilities of the market participants. Enter values and use the relevant observable input values as much as possible. Use unallowable values if the relevant observable input values are not available or are not practicable. (7) Equity instrument An equity instrument is a contract that evidences a residual interest in the

49 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 assets of the Company after deducting all liabilities. The Company issues (including refinancing), repurchases, sells or cancels equity instruments as changes in equity, and transaction costs related to equity transactions are deducted from equity. The Company does not recognize changes in the fair value of equity instruments. The Company's equity instruments distribute dividends (including “interests” generated by instruments classified as equity instruments) during the existence period as profit distribution treatment. 10. Impairment of Financial Assets The financial assets that the Company needs to recognize impairment loss are financial assets measured at amortized cost, debt instruments that are measured at fair value and whose changes are included in other comprehensive income, lease receivables, mainly including bills receivable, receivables Accounts, other receivables, debt investment, other debt investments, long-term receivables, etc. In addition, for contract assets and some financial guarantee contracts, impairment provision is also made and credit impairment losses are recognized in accordance with the accounting policies described in this section. (1) Confirmation method for impairment provision On the basis of expected credit losses, the Company makes provision for impairment and confirms credit impairment losses for each of the above items in accordance with its applicable expected credit loss measurement method (general method or simplified method). Credit loss refers to the difference between all contractual cash flows receivable from the contract and all cash flows expected to be received by the Company at the original actual interest rate, that is, the present value of all cash shortages. Among them, for the purchase or source of financial assets that have suffered credit impairment, the Company discounts the financial assets at the actual interest rate adjusted by credit. The general method for estimating the credit loss is that the credit risk of the Company's financial assets (including other applicable items such as contract assets, the same below) has been significantly increased since the initial confirmation on each balance sheet date. If the credit risk has increased significantly after the initial confirmation, the Company measures the loss preparation according to the amount of expected credit loss during the whole life period; if the credit risk has not increased significantly since the initial confirmation,

50 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 the Company is equivalent to the expected credit loss in the next 12 months. The amount is measured for loss. The Company considers all reasonable and evidenced information, including forward-looking information, when evaluating expected credit losses. For financial instruments with lower credit risk on the balance sheet date, the Company assumes that its credit risk has not increased significantly since the initial recognition, and chooses to measure the loss preparation according to the expected credit losses in the next 12 months. (2) Judgment criteria for whether credit risk has increased significantly since initial recognition If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly higher than the probability of default during the estimated duration of the initial recognition, the credit risk of the financial asset is significantly increased. Except for special circumstances, the Company uses the change in default risk occurring within the next 12 months as a reasonable estimate of the change in default risk throughout the life period to determine whether the credit risk has increased significantly since the initial recognition. (3) Combined method for assessing expected credit risk based on portfolio The Company evaluates credit risk individually for financial assets with significantly different credit risks, such as: receivables from related parties; receivables are in dispute with the other party or involve litigation or arbitration; there are clear signs that the debtor is likely to be unable to perform the repayment Obligated receivables, etc. In addition to individual financial assets that assess credit risk, the Company classifies financial assets into different groups based on common risk characteristics and evaluates credit risk on a portfolio basis. (4) Accounting treatment of financial assets impairment At the end of the period, the Company calculates the estimated credit losses of various financial assets. If the estimated credit loss is greater than the carrying amount of its current impairment provision, the difference is recognized as the impairment loss; if it is less than the carrying amount of the current impairment provision, the difference is recognized as an impairment gain. (5) Method for determining credit losses of various financial assets ① Bill receivable

51 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

The Company measures the loss for the notes receivable in accordance with the expected credit loss amount for the entire duration of the period. Based on the credit risk characteristics of notes receivable, they are divided into different combinations:

Items Recognition basis of portfolio Bank acceptance bill The acceptor is a bank with less credit risk 【According to the credit risk division of the acceptor, it should be the same as the Trade acceptance draft “accounts receivable” combination】 ② Accounts receivable and contract assets For receivables and contract assets that do not contain significant financing components, the Company measures loss provision based on the amount of expected credit losses equivalent to the entire duration of the life. For receivables, contract assets and lease receivables that contain significant financing components, the Company chooses to always measure loss provisions based on the amount of expected credit losses during the duration of the period. In addition to individual accounts receivable and contract assets for assessing credit risk, they are classified into different combinations based on their credit risk characteristics:

Items Recognition basis of portfolio Portfolio of related parties within the scope of Receivables due from related parties within in the consolidation consolidation scope of Meinian Health Portfolio by aging Receivables with provision for bad debts by age

③ Other receivables The Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months or the entire duration, based on whether the credit risk of other receivables has increased significantly since the initial recognition. In addition to other receivables that assess credit risk individually, they are classified into different combinations based on their credit risk characteristics:

Items Recognition basis of portfolio Portfolio of related parties within the scope of Receivables due from related parties within in the consolidation consolidation scope of Meinian Health Portfolio of specific nature Special deposits such as deposits, deposits, etc.

Portfolio by aging Receivables with provision for bad debts by age

④ Debt investment Debt investment mainly accounts for bond investments measured by amortized

52 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 cost. The Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months or the entire duration, based on whether its credit risk has increased significantly since the initial recognition. ⑤ Other debt investment Other debt investments mainly account for bond investments that are measured at fair value and whose changes are included in other comprehensive income. The Company has measured the impairment loss based on the amount of expected credit losses in the next 12 months or the entire duration, based on whether its credit risk has increased significantly since the initial recognition. ⑥ Long-term receivables (excluding receivables with significant financing components and lease receivables) The Company has measured the impairment loss of long-term receivables based on the amount of expected credit losses equivalent to the future 12 months or the entire duration, based on whether its credit risk has increased significantly since the initial recognition. 11. Inventories (1) Category of Inventories Inventories mainly include reagent and consumables, low-value consumables, etc. (2) Method used to assign cost for inventories The inventory shall be initially measured at actual costs when acquired. The cost of inventory comprises all costs of purchase, costs of conversion and other costs. Cost is determined using the First-in-first-out method. (3) Recognition of net realizable value of inventory and accruing method of provision for the loss on decline in value of inventories. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale and relevant taxes. An enterprise shall determine the net realizable value of inventories based on solid evidence obtained and after taking into consideration the purpose for which the inventory is held, and the effect of events occurring after the balance sheet date. On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the net realizable value is lower than the cost, the inventory depreciation reserve is extracted. The inventory depreciation reserve is

53 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 drawn based on the difference between the cost of a single inventory item and its net realizable value. After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be written down below cost no longer exist so that the net realizable value of inventories is higher than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss for the period. (4) Inventory system The perpetual inventory system is adopted. (5) Amortization method for low value consumables Immediate write-off method is used for low value consumables upon usage. 12. Assets Held for Sale and Disposal Group If the Company recovers its book value primarily through the sale instead of the continuous use of a non-current asset or disposal group (including the exchange of non-monetary assets with commercial substance, the same below), then the assets shall be classified as assets held for sale. The specific criteria are all of the following conditions are achieved: a non-current asset or disposal group can be sold immediately under the current conditions based on the practice of selling such assets or disposal groups in similar transactions; the Company has already decided on the sale plan and obtained the purchase commitment; the sale will be completed within one year. Among them, a disposal group refers to a group of assets that are disposed of as a whole through sale or other methods in a transaction, and liabilities that are directly related to these assets are transferred in the transaction. If the asset group or asset group to which the disposal group belongs is allocated the goodwill acquired in the business combination in accordance with Accounting Standards for Business Enterprises No. 8 - Impairment of Assets, the disposal group shall include the goodwill allocated to the disposal group. Upon initial measurement or re-measurement of non-current assets held for sale or disposal group on the balance sheet date, if the book value is higher than the net amount of fair value minus sales expense, the book value shall be written down to the net amount of fair value minus sales expense; the amount written down is recognized as impairment losses for assets and included in current profit or loss. Meanwhile, impairment reserve for assets held for sale is accrued. For the disposal group, firstly, the recognized impairment losses for assets deduct the book value of

54 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 the goodwill in the disposal group. Then the loss proportionally deducts the book value of the various non-current assets in the disposal group under the measurement regulations based on Accounting Standards for Business Enterprises No. 42 - Non-current Assets Held for Sale, Disposal Groups and Termination of Operations (hereinafter referred to as the “holding for sale”). If the fair value of the disposal group held for sale on the subsequent balance sheet date minus the sales proceeds increases, the amount previously written down shall be recovered. This part of amount should be reversed within the impairment losses of non-current assets which are applicable for held for sale measurement criteria after these assets are classified as assets held for sale. The reversal amount is recognized in current profit or loss. Meanwhile, the book value of these non-current assets (except goodwill) in disposal group should be increased proportionally according to the book value of each non-current asset which is applicable to held for sale measurement criteria. The book value of goodwill that has been deducted and the impairment losses recognized before the non-current assets classified as held for sale category cannot be reversed. Depreciation or amortization shall not be accrued for non-current assets held for sale or non-current assets in the disposal group held for sale. The interest of liabilities and other expenses in the disposal group held for sale shall be recognized. When a non-current asset or disposal group no longer meets the conditions for the held for sale category, the Company no longer divides it into the held for sale category or removes the non-current assets from disposal groups held for sale., and the asset or asset group is measured by the following two items: (1) the amount of book value classified as held for trading after depreciation, amortization, impairment or other adjustments to be recognized based on the hypothesis that they are not classified as held for trading; (2) the recoverable amount 13. Long-term Equity Investments Long-term equity investments in this part refers to the long-term equity investments that the Company has control、joint control or significant influence over the investee. Long-term equity investments that the Company does not have joint control or significant influence over the investee are measured as financial assets held for sale or financial assets measured at fair value through profit or loss, and please refer to Note IV.9 Financial Instruments for relevant accounting policy.

55 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Joint control refers to joint control owned by the Company over an arrangement as per relevant agreements and relevant activities of this arrangement must be determined upon consent of participants sharing the right of control. The term “significant influence” refers to the power to participate in making determinations on the financial and operating policies of an investment entity, but not to control or do joint control together with other parties over the formulation of these policies. (1) Recognition of investment cost If the long-term equity investment is obtained from the business combination involving enterprises under the common control, the share of book value of owners’ equity of the acquiree in consolidated financial statements of the ultimate controlling party under the combination date shall be deemed as the initial investment cost of the long-term equity investment. The difference between the initial investment cost and the carrying amount of cash paid, non-cash assets transferred, and liabilities assumed shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted to retained earnings. If the Company issues equity securities as the consideration for combination, the book value of the owners’ equity of the combined party on the combination date in consolidated financial statements of the ultimate controlling party shall be the initial investment cost of long-term equity investments. With the total face value of the shares issued as equity, the difference between the initial investment cost of long-term equity investment and the total face value of the shares issued shall be adjusted as capital reserve. If the capital reserve is insufficient to set it off, the retained earnings shall be adjusted. If shares of the acquiree are obtained step by step through several transactions, which results in the combination of enterprises under the different control, it shall be treated respectively as per whether it belongs to “a package deal”: where it belongs to “a package deal”, the accounting treatment for each transaction shall be conducted as a transaction obtaining the right of control. Where it does not belong to “a package deal”, the book value of the ownership interest of the acquiree on the combination date in consolidated financial statements of the ultimate controlling party shall be the initial investment cost of long-term equity investments. The difference among the initial investment cost of long-term equity investments, the book value of long-term equity investment which has reached the amount before the combination and total book value of new payment consideration obtained under the acquisition date shall be adjusted as capital reserve. If the

56 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 capital reserve is insufficient to set it off, the retained earnings shall be adjusted. The accounting treatment on the equity investments measured under equity method held before the combination date or the other comprehensive income recognized for the available-for-sale financial assets shall not be conducted. For long-term equity investment obtained through business combination not involving enterprises under the common control, the cost of combination shall be deemed as the initial investment cost of long-term equity investments on the acquisition date, and the cost of combination is the aggregate of the fair values, include the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer. If shares of the acquiree are obtained step by step through several transactions, which results in the combination of enterprises under the different control, it shall be treated respectively as per whether it belongs to “a package deal”: where it belongs to “a package deal”, the accounting treatment for each transaction shall be conducted as a transaction obtaining the right of control. Where it does not belong to “a package deal”, the sum of the carrying amount of equity investment of the acquiree held originally and additional investment costs shall be initial investment costs of long-term equity investment if the accounting method is changed as cost method. If equity held originally is accounted for using equity method, the accounting treatment shall not be conducted on the other comprehensive income related to it. If the equity investments held originally was available-for-sale financial assets, the difference between the fair value and the book value, and the accumulated fair value changes previously recognized in other comprehensive income are transferred to profit or loss for the current period. The intermediary costs for the business combination including the expenses for audit, legal services and consultancy services and other relevant management costs by the merging party and the acquirer shall be recorded into current profit or loss. Equity investments other than long-term equity investment from business combination are initially measured at cost. Such cost is respectively recognized at the purchase price in cash actually paid by the Company, fair value of equity securities issued by the Company, specified value in investment contracts or agreements, fair value or original book value of transferred assets in non-monetary asset exchange and transactions and fair value of the long-term equity investment itself based on different means of acquiring that long-term equity investment.

57 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Expenses, taxes and other necessary expenditures directly related to the acquisition of long-term equity investment are also included into investment cost. In case of being able to implement significant influence or common control to the invested entity due to additional investment but which does not constitute control, cost of long-term equity investment shall be the sum of fair value of original held equity investment recognized as per the Accounting Standards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments and newly increased investment cost. (2) Subsequent measurement and method of recognition of profit or loss Where an investing enterprise can exercise joint control (except those that constitutes the joint operators) or significant influence over the investee, a long-term equity investment shall be accounted for using the equity method. In addition, the Company uses the cost model in the financial statements to calculate long-term equity investment that can control the investee. ① Long-term equity investment income accounted by cost method The long-term equity investment accounted by the cost model shall be measured at the initial investment cost. And the additional or recovered investments shall be used to adjust the cost of long-term equity investment. Except for the cash dividends or distributions declared and not yet distributed in the considerations paid to acquire the investment, the cash dividend or distributions declared by the investee that belong to the investee shall be recognized as the investment gains. ② Long-term equity investment accounted by equity method If the initial cost of a long-term equity investment, accounted by equity method, is more than attributable share of the fair value of the investee’s identifiable net assets for the investment in the investee, the initial cost of the long-term equity investment may not be adjusted; if the initial cost of a long-term equity investment is less than the attributable share of the fair value of the investee’s identifiable net assets for the investment in the investee, the difference shall be recorded into current profit or loss and the cost of the long-term equity investment shall be adjusted simultaneously. When it is accounted by equity method, the investment gains and other comprehensive incomes shall be recognized respectively, and the book value of long-term equity investment shall be adjusted according to the net profit or loss and other comprehensive incomes realized by the investee, which shall be enjoyed or

58 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 shared. The enjoyed part shall be accounted according to profits or cash dividends announced to be assigned by the investee with the corresponding decrease of the book value of long-term equity investment. For other changes of owners’ equity excluding net profit or loss of investee, other comprehensive income and profits distributed, the book value of long-term equity investments shall be adjusted and included into capital reserve. The Company shall, on the ground of the fair value of all identifiable assets of the investee when it obtains the investment, recognize the share of the net profit or loss of the investee after it adjusts the net profits of the investee. If the accounting policies and accounting period adopted by the investee do not consistent with the investor, the financial statements of the investee shall be adjusted according to the accounting policies and accounting periods of the Company, and according to which the investment profits and other comprehensive incomes shall be recognized. If investment and sales of assets cannot be constructed as business in transactions between the Company, associates and joint ventures, the unrealized profit or loss of internal transaction shall be offset through calculating the part attributable to the Company based on sharing ratio so as to recognize the profit or loss of investment. Where the unrealized losses from the internal transactions between the Company and the invested entity belong to the impairment losses from the transferred assets, they shall not be written off. Where the assets contributed by the Company towards joint ventures or associates constitute business, and the investor acquires long-term equity investment but not the control right thereof, the fair value of the contribution shall be the initial investment cost of the newly added long-term equity investment. The balance of book value between initial investment cost and the contribution shall be recorded into current profit or loss in full amount. If the assets sales, from the Company to joint ventures or associates, constitute business, the total difference between consideration achieved and book value of business shall be recorded into current profit or loss. Where the assets purchased by the Company from associates and joint ventures constitute business, accounting treatment shall be carried out based on Accounting Standards for Business Enterprises No.20 - Business Combination and recognize the profit or loss in relation to the transaction in full amount. The Company shall recognize the net losses of the investee until the book value of the long-term equity investment and other long-term equity which substantially forms the net investment made to the investee are reduced to zero. In

59 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 addition, if the Company has the extra obligation towards its investee to undertake extra losses, the extra obligation shall be recognized as Provisions according to expected obligation and recorded into current profit or loss. If the investee realizes any net profits later, the Company shall, after the amount of its share of profits offsets against its share of the unrecognized losses, resume recognizing its share of profits. For the long-term equity investment in the joint ventures and associates held by the Company before the Company’s first implementation of the new accounting standards, if there is a debit balance of the equity investment related to the investment, the amortization amount under the straight-line method based on the original remaining period is recognized through profit or loss for the current period. ③ Minority equity acquisition When preparing consolidated financial statements, as for the difference between the long-term equity investment increased newly due to purchase minority equity and the net asset proportion continuously calculated from the purchase date (or combination date) by subsidiary based and enjoyed by the Company based on newly increasing shareholding ratio, capital reserve is adjusted. If the capital reserve is insufficient to write down, the retained earnings shall be adjusted. ④ Disposal of long-term equity investment In the consolidated financial statements, the parent company disposes the long-term equity investment of the subsidiary without losing control right. The difference between the disposing amount and the net asset of the subsidiary enjoyed correspondingly in disposing long-term equity investment is recorded into owner’s equity; If the parent company loses its control right on the subsidiary due to the disposal of the long-term equity investment of the subsidiary, the relevant accounting policy as indicated in Note IV, 5 (2) “Method of Preparation of Consolidated Financial Statements” shall be followed for handling. When disposing of a long-term equity investment under other circumstances, for equity being disposed, the difference between its book value and actual purchase price shall be recorded into current profit or loss. If long-term equity investment is accounted by equity method while the residual equity after disposal is still accounted for by equity method, the accounting treatment of other comprehensive income included in owners’ equity originally shall be conducted as per proportion on the same base as investee disposes of relevant

60 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 assets and liabilities directly. Other owners’ equity, which is recognized for changes of other owners’ equity of the investee excluding net profit or loss, other comprehensive incomes and profits distribution, shall be translated into current profit or loss as per proportion. If long-term equity investment is accounted by the cost model while the residual equity after disposal is still accounted by the cost model, the accounting treatment of other comprehensive incomes which are recognized for being accounted by equity method or recognition and measurement standards of financial instruments shall be conducted on the same base as investee disposes of relevant assets and liabilities directly, and other comprehensive incomes shall be carried over into current profit or loss as per proportion. Owners’ equity, which is recognized for changes of other owners’ equity of the investee excluding net profit or loss, other comprehensive incomes and profits distribution when the equity method is adopted, shall be carried over into current profit or loss as per proportion. When the Company loses the control over investee for disposal of some shares, the accounting method shall be changed as equity method in compiling individual financial statements and the remaining shares shall be deemed to be adjusted by equity method upon being obtained if the remaining shares after disposal still have joint control or significant impacts on investee. While the remaining shares after disposal do not have joint control or significant impacts on investee anymore, the accounting treatment shall be conducted as per regulations related to recognition and measurement standards of financial instruments and its difference between fair value and book value on the date of losing the control shall be included into current profit or loss. For other comprehensive income recognized as being accounted by equity method or recognition and measurement standards of financial instruments before the Company obtains the control over investee, its accounting treatment shall be conducted on the same base as investee disposes of relevant assets and liabilities directly upon losing the control over investee, and other owners’ entity in net assets of investee accounted for by equity method, excluding net profit or loss, other comprehensive income and profits distribution, shall be carried over into current profit or loss in the event of losing the control over investee. Of which, if the residual equity investment after disposal is calculated by equity method, other comprehensive income and owner's equity shall be transferred by proportion; where the residual equity investment after disposal

61 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 changes to be conducted with accounting treatment according to standard of recognition and measurement of financial instruments, other comprehensive income and owner's equity shall be transferred. Where the Company’s common control or significant influence over the investee is lost due to the disposal of partial equity investment, the residual equity after disposal will change to be calculated by standard of recognition and measurement of financial instruments, the balance between the fair value and book value thereof on the date the common control or significant influence is lost shall be included into current profit or loss. Other comprehensive income recognized by calculating original equity investment by equity method shall go through accounting treatment on the same basis on which the investee directly disposes the relevant assets or liabilities when ceasing to use equity method; for the owner's equity recognized by other changes on owner's equity rather than net profit or loss, other comprehensive income and profit distribution of the investee shall be transferred into current investment income when ceasing to use equity method. If the Company disposes of equity investment to subsidiaries for many transactions and leading to loss control, if it belongs to package deal, accounting treatment shall be conducted for each transaction as the transaction that disposes of subsidiary with loss of control right; before loss of control right, the difference between each price disposal and the book value of long-term equity investment correspondingly in equity disposed shall be firstly recognized in the other comprehensive income and then wholly transferred into current profit or loss when losing control right. 14. Fixed Assets (1) Recognition criteria of fixed assets Fixed assets are tangible assets that are held for use in the production or supply of services, for rental to others, or for administrative purposes, and have useful lives of more than one accounting year. A fixed asset is recognized only when it is probable that economic benefits associated with the asset will flow to the Company and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost and the effect of any expected costs of abandoning the asset at the end of its use is considered. (2) Depreciation method of fixed assets From the next month of bringing the fixed asset to the expected conditions for

62 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

use, the fixed assets are depreciated using the straight-line method over their estimated useful lives. Estimated useful life、net residual value rate and annual depreciation rate of each category of fixed assets are as follows: Annual Depreciation period Residual rate depreciation rate Category Depreciation Method (years) (%) (%) Buildings Straight-line method 40 5 2.38

Machinery equipment Straight-line method 5, 10 5 9.50, 19.00

Transportation equipment Straight-line method 8 5 11.88

Others Straight-line method 3, 5 5 19.00, 31.67 Estimated net residual value of a fixed asset is the estimated amount that the Company would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. (3) Impairment testing and accounting treatment As for impairment testing method and accounting treatment, please refer to Note IV. 19 “Long-term Asset Impairment”. (4) Recognition and measurement of fixed assets under finance lease A finance lease is a lease that transfers all the risks and rewards incidental to ownership of an asset. The ownership may or may not eventually be transferred. As for the fixed assets under finance lease, the lessee shall adopt a depreciation policy for leased assets consistent with that for depreciable assets which are owned by the lessee in calculating the depreciation of a leased asset. If it is reasonable to be certain that the lessee will obtain the ownership of the leased asset when the lease term expires, the leased asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the lessee will obtain the ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease terms or its useful life. (5) Additional notes The subsequent expenditures related to a fixed asset, if the economic benefits pertinent to the fixed asset are probably to flow into the enterprise and the cost of the fixed asset can be measured reliably, shall be included in the cost of the fixed asset and the book value of the replaced parts shall be derecognized. Any other subsequent expenses shall be recorded into current profit or loss. If a fixed asset is upon disposal or no future economic benefits are expected to

63 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 be generated from its use or disposal, the fixed asset is derecognized. When a fixed asset is sold, transferred, retired or damaged, the amount of any proceeds on disposal of the asset net of the carrying value and related taxes is recognized in current profit or loss. The Company reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at the end of each financial year and treats the changes as changes of in accounting estimate. 15. Construction in Progress The cost of construction in progress is recognized based on actual project expenditure, including every project’s expenditure during the construction, other relevant expenses, etc. Construction in progress is transferred into fixed assets when it is ready for its intended use. Please refer to Note IV. 19 "Long-term Asset Impairment” for the impairment test method and impairment provision method of construction in progress. 16. Borrowing Costs Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings. Where the borrowing costs incurred to an enterprise can be directly attributable to the acquisition and construction or production of assets eligible for capitalization, they shall be capitalized; it should be stop to be capitalized if the construction or production of assets meet the capitalization conditions which available to use or sale. Other borrowing costs should be recognized as expense when occurred. The amount of interest of specific-purpose borrowings to be capitalized shall be the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds. An enterprise shall determine the amount of interest to be capitalized on general-purpose borrowings by applying a capitalization rate to the weighted average of the excess amounts of cumulative expenditures on the asset over and above the amounts of specific-purpose borrowings. The capitalization rate shall be the weighted average of the interest rates applicable to the general-purpose borrowings. During the period of capitalization, the exchange differences on foreign

64 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 currency specific-purpose borrowings shall be all capitalized; the exchange differences on foreign currency general-purposes borrowings shall be recorded into current profit or loss. Assets qualified for casualization are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial period of time for acquisition, construction or production to get ready for their intended use or sale. Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted abnormally, when the interruption is for a continuous period of more than 3 months until the acquisition, construction or production is resumed. 17. Intangible Assets (1) Intangible assets An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the Company. The intangible assets shall be initially measured at cost. The expenses incurred on an intangible asset shall be recognized as cost of the intangible asset, if it is probable that the economic profit associate with the asset will flow to the Company and the cost can be measured reliably. The expenses of other items shall be recognized through profit or loss in the period in which it is incurred. Land-use right acquired is normally recognized as an intangible asset. Self-constructed buildings (e.g. plants), related land-use right and the buildings are separately accounted for as an intangible asset and fixed asset. For buildings purchased, the purchase consideration is allocated among the buildings and land-use right on a reasonable basis. In case there is difficulty in making a reasonable allocation, the consideration is recognized in full as fixed assets. The intangible assets shall be initially measured at cost. The expenses incurred on an intangible asset shall be recognized as cost of the intangible asset, if it is probable that the economic profit associate with the asset will flow to the Company and the cost can be measured reliably. The expenses of other items shall be recognized through profit or loss in the period in which it is incurred. At the end of the period, the Company shall review the useful life and amortization method of intangible assets with limited useful life. In case of any change, it shall be treated as change in accounting estimates. In addition, the Company shall review the useful life of intangible assets with indefinite useful life. If

65 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 there is evidence indicating that the period, over which the asset is expected to generate economic benefits for the Company, is foreseeable, the Company shall estimate its useful life and the assets shall be amortized through amortization policies for intangible assets with limited useful life. (2) Research and development expenditure The expenditures of research and development projects inside the Company can be classified into research expenditure and development expenditure. Research expenditure shall be recognized through profit or loss for the periods in which the expenditure is incurred. Development expenditure is recognized as intangible assets when all of the following conditions are met, otherwise it shall be recognized through profit or loss for the current period: ① the technical feasibility of completing the intangible asset so that it will be available for use or sale; ② its intention to complete the intangible asset and use or sell it; ③ how the intangible asset will generate economic benefits. Among other things, the enterprise can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; ④ the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and ⑤ its ability to measure reliably the expenditure attributable to the intangible asset during its development phase. If the expenditures cannot be distinguished between research phase and development phase, all of the research expenditure shall be recognized through profit or loss for the current period. (3) Impairment test method and impairment provision assessing method of intangible assets Please refer to Note IV. 19 “Long-term Asset Impairment” for the impairment test method and impairment provision method of intangible assets. 18. Long-term Prepayments Long-term prepayments are expenses which have been incurred but apportioned to the current period and subsequent periods with amortization period over one year. The long-term prepayments of the Company mainly comprise

66 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 decoration fees for houses rented; wherein, decoration fees for house used for placing NMR devices are amortized using straight-line method in 10 years; and other decoration fees are amortized using straight-line method in estimated benefit period or 5 years, whichever is shorter. 19. Long-term Asset Impairment On the balance sheet date, the Company shall make judgement on whether there is an indication of impairment for non-current non-financial assets such as fixed assets, construction in progress, intangible assets with limited useful life, investment properties measured using cost mothed, long-term equity investments in subsidiaries, joint ventures, associates. If indication of impairment exists, the recoverable amount shall be estimated, and the impairment test shall be conducted. Impairment test shall be conducted annually for goodwill, the intangible asset with uncertain service life and the intangible asset not reaching available condition, no matter there is impairment indication. Where the measurement result of the impairment test indicates that an asset’s recoverable amount is lower than its book value, impairment reserve shall be withdrawn based on its differences and recorded into the impairment loss. The recoverable amount shall be determined on the basis of the higher one of the net amounts of the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset. The fair value of asset is recognized based on the price as stipulated in the sales agreement in the fair transaction; where there is no sales agreement but there is an active market of assets, the fair value is recognized based on the price bidden by the buyer of the asset; where there is no sales agreement and no active market of assets, the fair value of an asset shall be estimated in light of the best information available of asset. The disposal expenses shall include the relevant legal expenses, relevant taxes, truck-ages as well as the direct expenses for bringing the assets into a marketable state. The present value of the expected future cash flow of an asset shall be determined by the discounted cash with an appropriate discount rate, on the basis of the expected future cash flow generated during the continuous use or final disposal of an asset. Asset impairment provision is calculated and recognized based on single asset. In case of the difficulty to estimate the recoverable amount of single asset, the recoverable amount of asset group is recognized in accordance with the asset group that such asset belongs to. The asset group refers to the

67 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 minimum asset portfolio that can independently generate cash inflow. When the goodwill separately listed in the financial statement under impairment test, the book value of the goodwill is apportioned to the asset group or the asset group combination beneficial from the cooperative effect of business combination. If the test result indicates that the recoverable amount of the asset group or the portfolio of asset groups of the goodwill apportioned is lower than its book value, corresponding impairment loss is recognized. The amount of the impairment loss shall first be used to charge against the book value of the goodwill of assets or portfolio of asset groups then charge it against the book value of other assets in proportion to the weight of other assets in the asset group or portfolio of asset groups with the goodwill excluded. Upon the recognition of the above-mentioned asset impairment loss, it is not allowed to be reversed the part of value that is restored in the future. 20. Employee Benefits The employee benefits of the Company mainly comprise short-term employee benefits, post-employment benefits, and termination benefits, including: The short-term benefits mainly comprise: employee salaries, bonus, allowances and subsidies, staff welfare, social insurance contributions such as premiums or contributions on medical insurance, maternity insurance premiums, work injury insurance, housing funds, labor union running cost, employee education costs, non-monetary benefits, etc. The Company shall recognize, in the accounting period in which an employee provides service, actually occurred short-term employee benefits as a liability, with a corresponding charge to profit or loss for the current period or in the cost of relevant asset. Where, the non-monetary benefits shall be measured at its fair value. Post-employment benefits mainly comprise basic pension, unemployment insurance and annuity, etc. Defined benefit plan mainly comprises the basic pension, unemployment insurance and annuity. The corresponding amount shall be recognized through relevant cost of the assets or the profit or loss for the current period when it is incurred. Where the labor relationship with employees is terminated prior to the expiration of the labor contract with employees, or compensation suggestions are made to encourage employees to accept the cutback voluntarily, the employee payroll liabilities incurred by the dismissal welfare shall be recognized through profit

68 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 or loss for the current period when the Company cannot withdraw unilaterally the dismissal welfare provided for the termination plan of labor relations or cutback suggestions, or when the Company recognizes the cost related to reorganization involving the payment of dismissal welfare, whichever is earlier. However, if it is anticipated that the dismissal welfare cannot be fully paid within 12 months after the end of the annual report period, such welfare shall be handled as other long-term Employee Payroll. The internal retirement plan for employee shall be handled by the principle the same to the aforesaid dismissal welfare. The Company will pay the salary and contribute social insurance for the internal retirement from the service stopped to be provided by such employee to normal retirement. Such fee is recognized through profit or loss for the current period (dismissal welfare) when conforming to the reorganization condition of estimated liability. Other long-term employee benefits provided by the Company to employee that is in line with defined contribution plans shall adopt the accounting treatment in accordance with defined contribution plans, otherwise the accounting treatment of defined benefit plans. 21. Provisions An obligation related to a contingency shall be recognized as a provision when all of the following conditions are satisfied: (1) The obligation is a present obligation of the enterprise; (2) It is probable that an outflow of economic benefits will be required to settle the obligation; and (3) The amount of the obligation can be measured reliably. As at the balance sheet date, the contingent liabilities shall be measured at the best estimate of the necessary expenses for performing relevant current obligations, with risks, uncertainty, time value of money, and other factors pertinent to the contingencies taken into consideration. Where all or some of the expenditure required settling a provision is expected to be reimbursed by a third party, the reimbursement shall be recognized as a separate asset only when it is virtually certain that reimbursement will be received. The amount recognized for the reimbursement shall not exceed the carrying amount of the provision. 22. Revenue (1) Revenue from the sale of goods

69 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

The Company has transferred the significant risks and rewards of ownership of the goods to the buyer; the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; relevant economic benefits are probable flow to the Company; and the associated costs incurred or to be incurred can be measured reliably. (2) Rendering of services Where the outcome of a transaction involving the rendering of services can be estimated reliably, revenue is recognized at the contract price. The outcome of a transaction involving the rendering of services can be estimated reliably when all of the following conditions are satisfied: ① The amount of revenue can be measured reliably; ② it is probable that the associated economic benefits will flow to the Company; ③ the stage of completion of the transaction can be measured reliably; and ④ the costs incurred and to be incurred for the transaction can be measured reliably. Where the outcome of a transaction involving the rendering of services cannot be estimated reliably, revenue is recognized to the extent of costs incurred that are expected to be recoverable and the service costs incurred are recognized as expenses for the current period. Where the costs incurred are not expected to be recoverable, no service revenue is recognized. The Company recognizes revenue from medical examination business at the time the examination is completed. (3) Income from royalties The amount of income from royalties is recognized according to the relevant contract or agreement on an accrual basis. (4) Interest income The amount of interest income is determined according to the length of time for which the Company's monetary funds are used by others and the effective interest rate. (5) Finance lease income ① Treatment on lease commencement date The difference between the unguaranteed residual value and the present value of the finance lease fund receivable upon the lease commencement date shall be recognized by the Company as unrealized financing income and recognized as rent

70 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 income in the future rent receiving periods. The initial direct costs incurred by the Company shall be included in the initial measurement of the financing lease receivables and the amount of revenue recognized during the lease term shall be reduced. The lease commencement date is the date of lease agreement or the date on which the parties to the lease make commitments on the main terms, whichever is earlier. On the lease commencement date, the Company and the lessee identify the lease as a finance lease or an operating lease and determine the amount that shall be recognized on the commencement date of the lease period. ② Allocation of unrealized financing income Pursuant to the provisions of the leasing standards, unrealized financing income shall be allocated to each period of the lease term and be recognized as lease income for each period. When allocating, the Company measures lease income which shall be recognized in the current period using the effective interest rate method. The effective interest rate is the discount rate which makes the present value of the minimum lease receivable amount and the present value of the unguaranteed residual value on the lease commencement date equal to the sum of the fair value of the leased assets and the initial direct costs incurred by the Company. ③ Treatment of changes in unguaranteed residual value If the unguaranteed residual value decreases, and the unguaranteed residual value of recognized losses are recovered, the interest rate implicit in the lease shall be recalculated, and the lease income shall be recognized based on revised net lease investment and recalculated lease interest rate in the subsequent periods. No adjustment is required if the unguaranteed residual value increases. The unguaranteed residual value is the residual value of the assets less the residual value of the guarantee for the lessor. ④ Disposal of contingent rent The contingent rentals received by the Company under the finance lease shall be recognized through profit or loss for the current period. (6) Factoring income The Company recognizes factoring income when the factoring contract comes into effect. (7) Consultation income According to relevant contracts or agreements, revenue is recognized on an

71 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 accrual basis. 23. Government Grants Government grants are transfer of monetary assets or non-monetary assets from the government to an enterprise at no consideration, excluding capital contribution from the Government as an owner of the Group to the Group. Government grants are classified into government grants related to assets and government grants related to income. The Company defines the government grant obtained for the purposes of acquisition or construction, or which form the long-term assets by other ways as government grant related to asset. The rests are defined as government grant related to income. If the government document did not specify the grant object, the subsidies are divided into income-related and asset-related in the following ways: (1) where the government document specifies the specific item to which the grant is directed, divide it according to the relative ratio of the expenditure incurred to form an asset to the expenditure charged to the expense which are in the budget of the specific item. The division ratio shall be reviewed at each balance sheet date and changed if necessary; (2) if the government document only made a general statement on the purpose without specifying the specific item, it shall be regarded as the government grant related to income. If a government grant was in the form of transfer of a monetary asset, it is measured at the amount received or receivable. If a government grant was in the form of a non-monetary asset, it is measured at fair value. If the fair value could not be reliably determined, it is measured at a nominal amount and directly recognized through profit or loss for the current period. The Company usually recognizes and measures the government grant according to the actual amount received when such subsidies are actually received. However, if any unambiguous evidence showed that relevant conditions specified in financial support policies are met and the financial support fund is expected to be received, measurement shall be made according to the amount receivable. As for the government grant measured according to the amount receivable, the following conditions shall be met: (1) The amount of subsidies receivable has been recognized according to the document issued by the competent government department, or been reasonably measured voluntarily according to relevant provisions of the financial funds management method issued officially, and it is estimated that there is no major uncertainty in the amount; (2) the government grant

72 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 are measured according to the financial support project and its financial funds management method officially issued by the local financial sector and disclosed initiatively according to the Regulations on the Disclosure of Government Information, and this management method shall be inclusive (any enterprise meeting the specified conditions may apply) rather than being developed specially for specific enterprises; (3) an unequivocal commitment has been made on the appropriation period in relevant grant approvals, the appropriation of such subsidies shall be guaranteed by relevant financial budgets, and thus reasonable guarantee can be made that the subsidies will be received within the specified time; (4) other relevant conditions (if any) to be met based on the specific situation of the Company and the grant matter. The government grant related to assets shall be recognized as the deferred income and included into current profit and loss within the useful life of the relevant assets through a reasonable and systematic method. For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred in subsequent periods, the grant is recognized as deferred income, and recorded into profit or loss for the current period in which the related costs are recognized. If the grant is a compensation for related expenses or losses already incurred, the grant is recognized immediately through profit or loss for the current period. The government grant related to both assets and income shall be subject to accounting treatment in accordance with different portion. Where it’s hard to distinguish the assets from the income, the whole subsidies will be recognized as government grant related to income. Government grant related to daily activities of the Company shall be recorded into other incomes as per the nature of economic business or used to offset relevant costs; otherwise, they shall be recorded into non-operating expenditures. For repayment of a government grant already recognized, if there was related deferred income balance, the repayment is offset against the carrying value of the deferred income, and any excess is recognized through profit or loss for the current period. In other cases, the repayment is recognized immediately through profit or loss for the current period. 24. Deferred Tax Assets/Deferred Tax Liabilities (1) Current income tax

73 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

On the balance sheet date, the current tax liabilities (or assets) incurred in the current period or prior periods shall be measured according to the expected payable (refundable) amount of income taxes under the tax law. The taxable income of enterprises, the basis of the measurement of the current tax, shall be measured according to the adjusted accounting profit before tax for the year by tax law. (2) Deferred tax assets and deferred tax liabilities As for the temporary difference arising from the difference between the book value of some asset or liability and its tax base and the difference between the book value of an item that has not been recognized as an asset or liability with its tax base determined in light of the tax law and its tax base, it is allowed to recognize it as the deferred income tax assets or the deferred income tax liabilities by balance sheet liability method. For temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognized. Besides, deferred tax liabilities will not be recognized for taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, except where the Company can control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not be reversed in the foreseeable future. Except the above-mentioned cases, the deferred tax liabilities generated from other all taxable temporary difference are recognized by the Company. Related to the initial recognition of the assets or liabilities arising from the following transactions that is not business combination and the accounting profits will not be affected, nor will the taxable amount (or the deductible loss) be affected at the time of transaction, the deductible temporary differences are not allowed to recognize relevant deferred tax assets. As for the deductible temporary differences related to the investments of subsidiary, associates and joint enterprises, corresponding deferred tax asset shall not be recognized if the temporary differences are unlikely to be reversed in the excepted future and it is likely to acquire any amount of taxable income tax that may be used for making up the deductible temporary differences. Except the above-mentioned cases, the

74 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Company shall recognize the deferred tax liabilities arising from a deductible temporary difference to the extent of the amount of the taxable income which it is most likely to obtain, and which can be deducted from the deductible temporary difference. As for any deductible loss or tax deduction that can be carried forward to the next year, the corresponding deferred tax assets shall be recognized to the extent that the amount of future taxable income to be offset by the deductible loss or tax deduction to be likely obtained. On the balance sheet date, the deferred tax assets and deferred tax liabilities shall be measured at the tax rate applicable to the period during which the assets are expected to be recovered or the liabilities are expected to be settled. The carrying amount of deferred tax assets shall be reexamined at the balance sheet date. If it is unlikely to obtain sufficient taxable income taxes to offset the benefit of the deferred tax assets, the carrying amount of the deferred tax assets shall be written down. When it is probable to obtain sufficient taxable income taxes, such write-down amount shall be subsequently reversed. (3) Tax expenses Tax expenses include current tax and deferred tax. Except that other comprehensive income is recognized, the current tax and deferred income tax related to the transactions or events directly recorded in the other comprehensive income or shareholders' equity and the carrying amount of goodwill is adjusted due to the deferred income tax arising from business combination, other current taxes and deferred income tax expenses or incomes are recorded in the profit or loss for the period. (4) Offset of income tax When the Company has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net basis. When the Company has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously, in

75 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 each future period in which significant amounts of deferred tax assets or liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net basis. 25. Lease A finance lease is a lease that transfers in substance all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred. All other leases are classified as operating leases. (1) Accounting treatments of operating leases as lessee Rent paid for operating leases shall be recorded by the lessee in the relevant asset costs or the current profits or losses by using the straight-line method over each period of the lease term. Initial direct costs incurred are recognized through profit or loss for the current period. Contingent rent shall be recognized through profit or loss in the period in which it is incurred. (2) Accounting treatments of operating leases as lessor Rent income from operating leases is recognized through profit or loss on a straight -line basis over the term of the relevant lease. The initial direct costs with a larger amount shall be capitalized when they actually arise and recorded, on a phased basis, into the current profit or loss on the ground of the recognized rent revenue during the whole lease term; and the other ones with a smaller amount shall be directly recognized through profit or loss for the current period. Contingent rent shall be recognized through profit or loss in the period in which it is incurred. (3) Accounting treatments of finance leases as lessee The Company shall, on the commencement of the lease term, record the leased asset at an amount equal to the lower of the fair value of the leased asset and the present value of the minimum lease payments at the inception of the lease, and recognize a long-term payable at an amount equal to the minimum lease payments. The difference between the recorded amounts is accounted for as unrecognized finance charge. Besides, initial direct costs that are attributable to the leased item incurred during the process of negotiating and securing the lease agreement are also added to the amount recognized for the leased asset. The net amount of minimum lease payments less unrecognized financing costs is separated into long-term liabilities and the portion of long-term liabilities due within one year for presentation. Unrealized financing costs are measured and recognized as financing costs

76 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 using the effective interest rate method over the lease term. Contingent rent shall be recognized through profit or loss in the period in which it is incurred. (4) Accounting treatments of finance leases as lessor A lessor shall, on the commencement date of the lease term, recognize the sum of the minimum lease receipts on the commencement date and the initial direct costs as the book value in an account of the finance lease values receivable, and record the unguaranteed residual value at the same time. The balance between the sums of the minimum lease receipts, the initial direct costs and the unguaranteed residual value, and the sum of their present values shall be recognized as unrealized financing income. The balance of deducting finance lease receivable with unrealized financing profit is presented in long-term liabilities and long-term liabilities due within one year, respectively. Unrealized financing profit in the lease period shall be measured and recognized as financing income for the current period using the effective interest rate. Contingent rent shall be recognized through profit or loss in the period in which it is incurred. 26. Significant Accounting Policies and Changes in Accounting Policies (1) Changes in significant accounting policies ① Changes in accounting policies resulting from the implementation of new financial instrument standards On March 31, 2017, the Ministry of Finance issued the "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments (Revised in 2017)" (Accounting [2017] No. 7) and "Accounting Standards for Business Enterprises No. 23" Transfer of Financial Assets (Revised in 2017) (Accounting [2017] No. 8), "Accounting Standards for Business Enterprises No. 24 - Hedge Accounting (Revised in 2017)" (Accounting [2017] No. 9), in May 2017 On the 2nd, the “Accounting Standards for Business Enterprises No. 37 – Financial Instruments Presentation (Revised in 2017)” (Accounting [2017] No. 14) (the above-mentioned guidelines are collectively referred to as “New Financial Instruments Guidelines”) was issued, requiring domestic listed companies to be 2019 The new financial instrument guidelines will be implemented from January 1. After the resolution of the sixth meeting of the seventh board of directors of the Company on April 25, 2019, the Company began to implement the aforementioned

77 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 new financial instrument guidelines on January 1, 2019. All recognized financial assets under the new financial instrument criteria are subsequently measured at amortized cost or fair value. On the implementation date of the new financial instrument standard, the business model of managing financial assets is evaluated based on the facts and circumstances of the Company on the day, and the contractual cash flow characteristics on the financial assets are evaluated based on the facts and circumstances at the initial confirmation of the financial assets. Financial assets are classified into three categories: measured at amortized cost, measured at fair value, and the changes are included in other comprehensive income and measured at fair value through profit or loss. In the case of an equity instrument investment measured at fair value through profit or loss, when the financial asset is derecognized, the accumulated gain or loss previously recognized in other comprehensive income is transferred from other comprehensive income to retained earnings. It is included in the current profit and loss. Under the new financial instrument standard, the Company based on expected credit losses, financial assets measured at amortized cost, debt instrument investments measured at fair value and whose changes are included in other comprehensive income, lease receivables, contract assets And the financial guarantee contract withdrawal of impairment provision and confirmation of credit impairment losses. The Company traces the application of the new financial instrument criteria, but the Company chooses not to repeat the classification and measurement (including impairment) involving the inconsistency between the previous comparative financial statement data and the new financial instrument criteria. Therefore, for the cumulative impact of the implementation of the standard for the first time, the Company adjusted the retained earnings or other comprehensive income at the beginning of 2019 and other related items in the financial statements, and the financial statements for 2018 were not restated. 27. Significant Accounting Judgments and Estimates In the application of the accounting policies, due to the intrinsic uncertainty of business operations, the Company needs to judge, estimate, and make assumptions on the book value of report item which cannot be reliably measured. These judgments, estimations, and assumptions are made based on the Company

78 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 management’s historical experiences, and with references of other related factors. These judgments, estimations and assumptions can have impact on the reported amount of income, expenses, assets and liabilities, and the disclosure of contingent liabilities on the balance sheet date. It is probable that the actual results arising from the uncertainty of these estimates are different from the current estimates of the Company’s management, and then lead to significant adjustments to the book value of assets or liabilities influenced in future. The Company performs periodic revision on the above determinations, estimations, and assumptions on the basis of constant operation. When a change in accounting estimation is just influencing the current term, its influenced amount is recognized in the current term. When a change is influencing not only the current term but also the future terms, its influenced amount is recognized in the current term and also the future terms. Major areas of amount of financial statements to be judged, evaluated and assumed by the Company on balance sheet date are as follows: (1) Classification of leasing According to the provisions of Accounting Standards for Business Enterprises No.21 - Leasing, leasing is classified into operating leasing and financing leasing. When classifying, the management shall make analysis and judgment on whether all risks and rewards incident upon the ownership of the leased assets have been substantially transferred to the lessee, or whether the Company has assumed all risks and rewards incident upon the ownership of the leased assets. (2) Accrued provision for bad debts The Company shall calculate the provision for bad debts using the allowance method based on accounting policies related to receivables. The impairment of receivables is based on the assessment of the collectability of receivables. Verification of receivable impairment requires judgment and estimation of the management. Difference between the actual results and the original estimations can have impact on the book value of receivables and the provision for bad debts of receivables provided or recovered in the expected period in which it changes. (3) Provision for decline in value of inventories The Company accrues inventory falling price reserve of inventories with higher cost than net realizable value and obsolete and unsalable inventories according to their cost and net realizable value, whichever is lower, based on inventory

79 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 accounting policies. Impairment of inventory to net realizable value is based on the evaluation of its sale ability and net realizable value. The identification of impairment of inventory calls for the management to make judgment and estimation after receiving sound evidence and considering the purpose of holding the inventory and the influence factors of events after balance sheet date. Difference between the actual results and the original estimation will be calculated, provided or reversed by the influence on the book value of inventories and inventory falling price reserve in the estimated change period. (4) Fair value of financial instruments The Company recognizes the fair value of financial instruments without active trading market through various valuation methods. These valuation methods include discounted cash flow model analysis, etc. The Company needs to evaluate the future cash flow, credit risks, market volatility and relevance, etc. and choose the proper discount rate. These relevant hypotheses are uncertain, and the changes will inflect impact on the fair value of financial instruments. (5) Provision for impairment of long-term assets The Company will judge whether there exists indication showing that the impairment might incur on non-current assets rather than financial assets on the balance sheet date. Except impairment test conducted each year, when there exists indication of impairment, then impairment test should be conducted too for intangible asset that service life is uncertain. Impairment test should be conducted on non-current assets rather than financial assets if the Company finds evidence that book value is unrecoverable. When the book value of assets or asset group is higher than recoverable amount, namely, the net amount of the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset, it indicates that the impairment incurs. Net amount of the fair value minus disposal expense should be recognized by reference to sales agreement price of observed market price of similar assets in fair transaction minus increased cost belonging to such assets disposed. Upon estimation of current value of future cash flow, significant judgment on production, sale price, related operation cost and discount rate for current value calculation is required. The Company may use all attainable relevant information upon estimation of recoverable amounts, including estimation of relevant

80 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 production, sale price and relevant operation cost made based on reasonable and supportive hypothesis. The Company will test if the goodwill suffers from impairment at least once a year. It requires estimation of the current value of future cash flow for asset groups or their combinations with good will distributed. Upon estimation of future cash flow, the Company needs to estimate cash flow generated by future asset groups or their combinations and meanwhile choose proper discount rate to recognize the current value of future cash flow. (6) Depreciation and amortization The Group calculates and accrues depreciation and amortization by the method of line within service life after considering the remaining value of investment properties, fixed assets and intangible assets. The Group periodically reviews service life to decide the amount to be included into each report period of depreciation and amortization expenses. Service life is recognized by the Group based on past experience for the same type of assets together with anticipated technological updates. If past estimation has been significantly changed, expenses for depreciation and amortization should be adjusted in the future. (7) Deferred tax assets If it is highly possible that there is enough taxable profit to offset losses, the Company recognizes deferred income assets for all unused taxation losses. It requires huge judgment of the management of the Company to estimate the time and amount of future taxable profit together with tax payment planning strategy to decide the amount of deferred income tax assets to recognized. (8) Income taxes During regular business activities of the Group, there are uncertainties in final taxation disposal and calculation for some transactions. Whether some projects can list approval needed from taxation authorities before tax. If the final recognition result of these taxation matters is different from the initially estimated amount, such difference will influence the income tax and deferred income tax of current period during final recognition. (9) Fair value measurement Certain assets and liabilities of the Company are measured at fair value in the financial statements. When estimating the fair value of an asset or liability, the Company uses observable market data available. If the first level of input is not

81 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 available, the Company works closely with a qualified external value to determine the appropriate valuation techniques and input values for the relevant models. The Company regularly reorganizes the fluctuations in the fair value of related assets and liabilities, and reports the reasons for fluctuations to the management of the Company. Information on valuation techniques and input values used in determining the fair value of various types of assets and liabilities is disclosed in Note X. V. Taxes 1. Main Tax Types and Tax Rate

Types of Tax Specified tax rate VAT on sales is calculated at 16%、13% or 6% on revenue generated by the Value added tax("VAT") general taxpayer and paid after deducting input VAT on purchases. For the small-scale taxpayer, the VAT is calculated at 3% on revenue. Urban maintenance and construction Calculated and paid at 7%, 5% or 1% on the payment of turnover tax. tax Corporate income tax Please refer the details below.

The applicable income tax rates are as follows:

Name of taxable entity Income tax rate The Company 25% of the taxable income

Domestic subsidiaries 25% , 20% or 15% of the taxable income

Foreign subsidiaries (Hong Kong) Subject to the law in registration area

2. Tax preferential treatments and approval documents (1) Value added tax Pursuant to Caishui (2011) No.100 and “The notice of tax affair” issued by the first tax office of the state taxation bureau of Pudong New Area, Shanghai (No: WTSL180308966698), The Company’s subsidiary Shanghai Meidong Software Development Co., Ltd. enjoyed a tax preferential policy of immediate refund of VAT levied for its revenue on sale of software products. The tax preferential period was from January 1, 2018 to December 31, 2020. After the change of the camp, the medical income earned by the subsidiaries of the Company within the scope of the license of the medical institution license is exempt from the value-added tax and its additional tax. (2) Corporate Income Tax The Company’s subsidiary Ciming Healthy Physical Examination Management Group Co., Ltd. is considered as high-technical corporate by Beijing Municipal Commission of Science and Technology, Beijing Municipal Finance Bureau and

82 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Beijing Taxation Bureau of State Administration of Taxation (Certificate No: GR201811007559) and enjoyed the taxable discount policy of high-technical corporate. 15% will be used as the corporate income tax in 2019. The Company’s subsidiary Meiyin Onehealth Technology (Beijing) CO., Ltd is considered as high-technical corporate by Beijing Municipal Commission of Science and Technology, Beijing Municipal Finance Bureau and Beijing Taxation Bureau of State Administration of Taxation (Certificate No: GR201711001779) and enjoyed the taxable discount policy of high-technical corporate. 15% will be used as the corporate income tax in 2019. According to the Notification of Ministry of Finance, State Administration of Taxation and General Administration of Customs on Income Tax Preference Policies for Further Implementation of Western Development Strategy (Caishui (2011) No.58), the primary business of the subsidiaries, including Yunnan Meinian Onehealth Healthcare Co., Ltd., Xichang Meinian Onehealth Health Management Co., Ltd., Yili Meinian Onehealth Health Management Co., Ltd., Chengdu Meinian Onehealth Health Management Co., Ltd., Chengdu Meinian Physical Examination Hospital Co., Ltd., Chengdu Onehealth Technology Management Co., Ltd., Mianyang Meinian Onehealth Technology Co., Ltd., Sichuan Hongkangjie Medical Investment Management Co., Ltd., Chengdu Kai'er Health Physical Examination Hospital Co., Ltd., Chengdu Tianfu New Aoya Hospital Co., Ltd., Leshan Meinian Onehealth Service Co., Ltd., Dali Meinian Physical Examination Hospital Co., Ltd., Deyang Meinian Physical Examination Hospital Co., Ltd., Suining Meinian Physical Examination Hospital Co., Ltd., Nanning Meinian Onehealth Physical Examination Co., Ltd., Guizhou Meinian Onehealth Kangyuan Physical Examination Center Co., Ltd., Chongqing Meinian Onehealth Management Co., Ltd., Chongqing Meinian Onehealth Physical Examination Management Co., Ltd., Xi’an Meinian Onehealth Health Management Co., Ltd., Xi’an Qujiang New District Onehealth Outpatient Co., Ltd., Lanzhou Meinian Onehealth Health Management Co., Ltd., Lanzhou Meinian Onehealth Jinmao Health Management Co., Ltd., Xinjiang Meinian Onehealth Health Management Co., Ltd., Chengdu Ciming Health Management Co., Ltd., Tongliao Ciming Health Management Co., Ltd., Urumqi Huarui Tianmei Health Management Co., Ltd., Xinjiang Puhui Antai Health Management Co., Ltd., Puer Meinian Onehealth Physical Examination Center Co., Ltd., Gunagyuan Meinian Onehealth Technology Co., Ltd., Qingyang Meinian

83 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Onehealth Health Management Co., Ltd., Xining Meinian Onehealth Health Management Co., Ltd., Zigong Meinian Onehealth Health Physical Examination Hospital Co., Ltd., Luzhou Meinian Onehealth Technology Co., Ltd., Meishan Meinian Onehealth Management Co., Ltd. Neijiang Meinian Onehealth Health Management Co., Ltd., the operating business belong to the Catalogue of Industries Encouraged to Develop in the Western Region (No.15 of National Development and Reform Commission in the end of 2014) and relevant approval documents were obtained from local taxation bureau. The subsidiaries are subject to the corporate income tax of 15%. According to the Notification of Ministry of Finance, State Administration of Taxation and Ministry of Industry and Information Technology on the Catalogue of company income tax for Industries and Enterprises Encourage to Develop in Difficult Areas in Xinjiang (Trial implementation) (Caishui (2011) No.53), the main business of the Company’s subsidiary Hami Meinian Onehealth Health Management Co., Ltd. is covered by the Catalogue and as relevant approval documents have been obtained from local taxation bureau, the subsidiary is exempted from the Company income tax from 2015 to 2016 and enjoys a reduction of 50% of corporate income tax from 2017 to 2019. According to the “Notice of the Finance Department of the Autonomous Region, the Development and Reform Commission of the Autonomous Region, the Economic and Information Technology Commission of the Autonomous Region, the State Taxation Bureau of the Autonomous Region and the local Taxation Bureau of the Autonomous Region on the implementation of the preferential policy of "two exemptions and three halving" of income tax for newly established enterprises in difficult are as at central Xinjiang” (New Caifashui (2011) No. 51), the Company’s subsidiary Hami Meinian Onehealth Health Management Co., Ltd. enjoyed the discounts in the third to the fifth year of the implementation of the "two exemptions and three halving" preferential tax policy, the local share of the exemption from corporate income tax is exempted, that is, on the basis of the halving of the 25% statutory tax rate of corporate income tax in 2019, the 40% share of the local share of corporate income tax has been approved by the local tax bureau. VI. Notes to Items of Consolidated Financial Statements The following annotated items (including the main items of the Company 's financial statements) unless otherwise specified, “Opening” refers to January 1,

84 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

2019, “Closing” refers to June 30, 2019, and “end of last year” refers to December 31, 2018. "This period" refers to January-June 2019, and "previous year" refers to January-June 2018. 1. Cash and cash equivalents

Items Closing balance Opening balance

Cash on hand 4,492,473.75 6,076,636.71

Cash in bank 1,970,529,707.29 2,384,054,158.55

Other currency funds 63,418,524.89 104,312,986.94

Total 2,038,440,705.93 2,494,443,782.20 Including: total amount of deposit abroad 223,468,571.41 10,225,716.28 Note 1: Meinian Onehealth deposited RMB 13.00 million as a deposit at China Merchants Bank Shanghai Branch, replacing the 62.00% equity of Xiamen Meinian Onehealth Management Co., Ltd. in the bank's equity pledge loan in 2017. Note 2: The other monetary funds of Beijing Meinian Insurance Broker Co., Ltd., a subsidiary of the Company was RMB 50,260,527.71, which was deposited into the Trust Fund of Beijing Tiantongyuan Sub-branch of China Minsheng Banking Co., Ltd. for the “operation of the Insurance Broker Business License”. Note 3: The bank deposit of Tianjin Meiyin Investment Management Co., Ltd., a subsidiary of the Company, was RMB 600.00 due to the freezing of ETC business. 2. Notes receivable (1)List of bills receivable

Items Closing balance Opening balance Bank acceptance bill 1,100,000.00

Commercial acceptance bill 236,840.00

Total 1,336,840.00

Less: bad debt Provision

Total 1,336,840.00

(2)Notes receivable that have been endorsed or discounted at the end of the period and have not expired on the balance sheet date Items Closing balance Opening balance

Bank acceptance bill 100,000.00

Commercial acceptance bill

Total 100,000.00

85 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

3. Accounts receivable (1)Disclosure by age

Aging Closing balance

Within 1 year 2,103,462,222.67

1 to 2 years 107,381,394.70

2 to 3 years 37,990,049.62

3 to 4 years 11,506,177.47

4 to 5 years 6,132,453.25

Above 5 years 16,448,047.88

Subtotal 2,282,920,345.59

Less: bad debt Provision 85,296,121.82

Total 2,197,624,223.77 (2)Classified by bad debt accrual method

Closing balance

Type Book balance Bad debt provision Book value Amount Proportion (%) Amount Proportion (%) Receivables that are individually significant and for which bad debt provision has been individually 2,947,943.16 0.11 2,947,943.16 100.00 assessed Receivables which bad debt provision has been assessed by 2,279,887,404.43 99.89 82,263,180.66 3.61 2,197,624,223.77 portfolio of credit risk features Receivables that are individually insignificant and for which bad debt provision has been 84,998.00 - 84,998.00 100.00 individually assessed Total 2,282,920,345.59 100.00 85,296,121.82 3.74 2,197,624,223.77 (Cont.)

Opening balance

Type Book balance Bad debt provision Book value Amount Proportion (%) Amount Proportion (%) Receivables that are individually significant and for which bad debt provision has been 2,947,943.16 0.14 2,947,943.16 100.00 individually assessed Receivables which bad debt provision has been assessed by 2,043,547,411.97 99.85 74,060,350.49 3.62 1,969,487,061.48 portfolio of credit risk features Receivables that are individually insignificant and for which bad 84,998.00 0.01 84,998.00 100.00 debt provision has been

86 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Opening balance

Type Book balance Bad debt provision Book value Amount Proportion (%) Amount Proportion (%) individually assessed

Total 2,046,580,353.13 100.00 77,093,291.65 3.77 1,969,487,061.48 ① Receivables with closing balance that are individually significant and for which bad debt provision has been individually assessed Closing balance Receivables (by unit) Bad debt Proportion of Receivable Reason of provision provision provision Wang Shifang 2,947,943.16 2,947,943.16 100.00 Uncollectable

Total 2,947,943.16 2,947,943.16 -- --

② Receivables for which bad debt provision has been assessed by aging analysis method in portfolio

Closing balance Items Book value Bad debt provision Proportion (%)

Within 1 year 2,103,462,222.67

1 to 2 years 107,381,394.70 32,214,418.41 30

2 to 3 years 37,990,049.62 18,995,024.81 50

3 to 4 years 11,506,177.47 11,506,177.47 100

4 to 5 years 6,132,453.25 6,132,453.25 100

Above 5 years 13,415,106.72 13,415,106.72 100

Total 2,279,887,404.43 82,263,180.66 —— (3)The situation of bad debt provision

Current change amount Opening Closing Type Combined to Take back or Resale or balance Accrual balance increase turn back write-off Receivables that are individually significant and for which bad debt 2,947,943.16 2,947,943.16 provision has been individually assessed Receivables which bad debt provision has been assessed 74,060,350.49 4,718,126.65 3,737,384.85 252,681.33 82,263,180.66 by portfolio of credit risk features

87 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Current change amount Opening Closing Type Combined to Take back or Resale or balance Accrual balance increase turn back write-off Receivables that are individually insignificant and for which bad debt 84,998.00 84,998.00 provision has been individually assessed Total 77,093,291.65 4,718,126.65 3,737,384.85 252,681.33 85,296,121.82 (4) Accounts receivable actually written off in the current period

Item Write-off amount

Actually written off accounts receivable 252,681.33 (5) Accounts receivable of the top five balances at the closing balance of the arrears The total amount of the top five accounts receivable of the year-end balance of the Company 's arrears collected this year is RMB 168,693,306.37, accounting for 7.07% of the total balance of accounts receivable at the end of the year, and the corresponding provision for bad debts at the end of the year is summarized. The amount is RMB 7,518,513.28. 4. Advanced to customers (1) Disclosed by ageing

Closing balance Opening balance Aging Amount Proportion (%) Amount Proportion (%)

Within 1 year 222,412,411.76 87.79 188,459,821.69 93.34

1 to 2 years 27,164,063.39 10.72 10,354,995.12 5.13

2 to 3 years 2,385,168.59 0.94 2,251,243.39 1.11

Above 3 years 1,381,860.18 0.55 844,788.98 0.42

Total 253,343,503.92 100.00 201,910,849.18 100.00 (2) Advance payment of the top five balances of final balances by prepaid objects The balance of the top five prepayments of the company's final balances based on prepaid objects is RMB 30,090,873.02, accounting for 11.88% of the total balance of prepayments at the end of the period. 5. Other receivables

88 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Closing balance Opening balance

Interest receivable

Dividends receivable 13,463,507.00 2,506,849.32

Other receivables 398,541,541.13 394,125,296.65

Total 412,005,048.13 396,632,145.97 (1)Dividends receivable Situation of dividends receivable

Items Closing balance Opening balance Nantong Meifu Health Industry Investment Partnership (Limited Partnership) 5,953,333.33 Nantong Meizhao Meinian Health Industry M&A Investment Fund (Limited Partnership) 5,000,000.00 2,506,849.32 Pingliang Meinian Onehealth Health Management Co., Ltd. 2,510,173.67

Subtotal 13,463,507.00 2,506,849.32

Less: bad debt provision

Total 13,463,507.00 2,506,849.32 (2) Other receivables ① Disclosed by aging

Aging Closing balance

Within 1 year 240,623,081.88

1 to 2 years 75,874,514.43

2 to 3 years 33,003,303.47

3 to 4 years 23,356,270.99

4 to 5 years 14,829,668.66

Above 5 years 22,653,819.60

Subtotal 410,340,659.03

Less: bad debt provision 11,799,117.90

Total 398,541,541.13 ② Category of other receivables as per the nature of amount

Nature of amount Closing Book Balance Opening Book Balance

Current account 102,459,248.08 96,292,868.21

Guarantee deposit 139,275,882.55 138,713,022.83

Cash deposit 91,420,930.43 82,839,544.37

Petty cash 20,058,381.65 11,043,270.63

Stock repurchase 12,412,540.35 46,484,978.67

89 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Withholding social security fund 11,271,883.56 8,199,198.77

Equity transfer 5,144,000.00 7,344,000.00

Others 28,297,792.41 11,003,650.41

Subtotal 410,340,659.03 401,920,533.89

Less: bad debt provision 11,799,117.90 7,795,237.24

Total 398,541,541.13 394,125,296.65

③ Bad debt accrued situation

Stage I Stage II Stage III Bad debt provision Expected credit Expected credit loss Expected credit loss Total losses in the next 12 for the entire duration for the entire duration months (Unimpaired) (Impaired) Balance on January 1, 2019 7,795,237.24 7,795,237.24 The book balance of other receivables on January 1, 2019 is in this issue: ——Transfer to the Stage II

——Transfer to the Stage III

——Transfer to the Stage II

——Transfer to the Stage I

Current accrual 3,809,797.15 3,809,797.15

Return this issue

Resale in the current period

Write-off of this period

Other changes 194,083.51 194,083.51

Balance on June 30, 2019 11,799,117.90 11,799,117.90

④ Bad debt provision

Current change amount Items Opening balance Increase in Take back or Resale or Closing balance Accrual merger turn back write-off Other receivables 7,795,237.24 3,809,797.15 194,083.51 11,799,117.90 Total 7,795,237.24 3,809,797.15 194,083.51 11,799,117.90 ⑤ Other receivables with top five closing balances as collected as per the debtors Bad debt Proportion to total provision Name of company Nature Closing balance Ageing other receivable Closing (%) balance Haitong Securities Co., Ltd. Stock repurchase 12,412,540.35 Within 1 year 3.02

90 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Bad debt Proportion to total provision Name of company Nature Closing balance Ageing other receivable Closing (%) balance Equity acquisition Wang Gang 1 to 2 years deposit 8,000,000.00 1.95 Yunnan Shunxi Health Equity acquisition Industry Investment Co., 1 to 2 years deposit 7,000,000.00 1.71 Ltd. Equity acquisition Zhang Hao 1 to 2 years deposit 7,000,000.00 1.71 Anshan Ciming-Gaoyan Equity transfer 5,144,000.00 2 to 3 years 1.25

Total —— 39,556,540.35 —— 9.64 6. Inventories Inventory classification

Closing balance Items Book balance Inventory impairment Book value

Reagents and consumables 114,183,881.50 114,183,881.50

Inventory 2,777,696.34 2,777,696.34

Total 116,961,577.84 116,961,577.84 (Cont.)

Opening balance Items Book balance Inventory impairment Book value

Reagents and consumables 123,802,239.96 123,802,239.96

Inventory 2,706,789.93 2,706,789.93

Total 126,509,029.89 126,509,029.89 7. Non-current assets within one year

Items Closing balance Opening balance Remarks

Long-term receivables within one year 486,208,813.70 360,853,015.93 Note VI, 10 for details.

Total 486,208,813.70 360,853,015.93 8. Other current assets

Items Closing balance Opening balance

Input tax to be deducted 273,154,405.71 253,847,090.14

Prepaid enterprise income tax 2,137,290.25 661,430.14

Financing products from bank 2,053,478.50

Total 275,291,695.96 256,561,998.78 9. Available-for-sale financial assets

Items Opening balance

91 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Impairment provision Book value

Available-for-sale debt instruments

Available-for-sale equity Instrument 1,077,054,315.70 1,077,054,315.70

Including: Measured at fair value

Measured at cost 1,077,054,315.70 1,077,054,315.70

Others

Total 1,077,054,315.70 1,077,054,315.70 10. Long-term receivables

Closing balance Items Book balance Impairment Book value

Financial lease 1,310,341,297.81 1,310,341,297.81

Factoring accounts 21,625,134.66 21,625,134.66

Deposit for finance lease 766,851.26 766,851.26

Less: Non-current assets due within one year (Note VI.7) -486,208,813.70 -486,208,813.70

Total 846,524,470.03 846,524,470.03 (Cont.)

Opening balance Items Book balance Impairment Book value

Financial lease 1,092,226,753.77 1,092,226,753.77

Factoring accounts 12,518,930.70 12,518,930.70

Deposit for finance lease 759,394.64 759,394.64

Less: Non-current assets due within one year (Note VI.7) -360,853,015.93 -360,853,015.93

Total 744,652,063.18 744,652,063.18 11. Long-term equity investments

Increase and decrease in the current year Opening Investment income Other Other Investees Increase in Decrease in balance or loss recognized equity changes investments investments under equity method change in equity Associated Enterprise Fuyang Meinian Onehealth Health Management Co., Ltd. 379,731.12 4,300,000.00 52,328.95 Mengcheng county Meinian Onehealth Management Co., Ltd. 592,512.83 1,960,000.00 -31,398.73 Luoyang Meinian Onehealth Medical Technology Co., Ltd. 944,192.09 -60,041.75 Beijing Langmei Culture Media Co., Ltd. 949,824.02 -153,746.32

92 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Panzhihua Ciming Health Physical Examination Management Co., Ltd. 1,012,757.92 -831,477.96 Yangxin Ciming Health Examination Management Co., Ltd. 1,467,022.03 -80,019.88 Lianjiang Ciming Management Co., Ltd. 1,795,915.65 -289,053.82 Pizhou Ciming Health Physical Examination Management Co., Ltd. 1,914,374.37 -331,530.62 Leshan Ciming Health Physical Examination Service Co., Ltd. 2,801,816.66 -965,645.60 Guyuan Meinian Onehealth Hospital Co., Ltd. 2,889,245.72 -108,149.48 Yantai Meinian Onehealth Physical Examination Management Co., Ltd. 3,038,653.24 -91,120.11 Dongying Meinian Onehealth Health Management Co., Ltd. 3,106,411.89 339,001.25 Anshun Ciming Health Physical Examination Management Co., Ltd. 3,486,563.37 1,400,000.00 -87,947.17 Weihai Guoji Meinian Onehealth Physical Examination Center Co., 3,594,159.48 -35,329.73 Ltd Enshi Meinian Onehealth Management Co., Ltd. 4,414,383.27 -16,991.73 Wenshan Meinian Onehealth Physical Examination Center Co., 5,118,368.17 -79,497.75 Ltd. Jiangsu Huakang Vocational Health Consulting Co., Ltd. 5,596,032.60 -197,560.04 Baoshan Meinian Onehealth Physical Examination Center Co., 5,693,075.49 -246,334.63 Ltd. Dalian pulan Meinian Comprehensive Health Outpatient 5,704,278.12 -70,652.35 Co., Ltd. Xianning Meinian Onehealth Physical Examination Management 5,732,051.94 -6,598.40 Co., Ltd. Weihai Meinian Onehealth Physical Examination Center Co., Ltd 3,500,000.00 -217,531.10 Hefei Ciming Aoya Health Management Co., Ltd. 10,500,000.00 -163,480.02 Shanghai Haozhuo Data Service Co., Ltd. Total 60,231,369.98 21,660,000.00 -3,672,776.99 12. Other non-current financial assets

Items Closing Balance

Financial assets classified as at fair value through profit or loss 1,297,241,515.70

Including: equity instrument investment 1,297,241,515.70

Total 1,297,241,515.70

93 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Nantong Meifu health industry investment partnership

(limited partnership) 228,000,000.00 228,000,000.00 Note 1 11,526,666.66 Shanghai Jianyi Investment Center (Limited

Partnership) 50,000,000.00 50,000,000.00 Note 2 2,527,777.78 Nantong Meizhao Meinian Health Industry M&A

Investment Fund (Limited Partnership) 50,000,000.00 50,000,000.00 Note 3 2,493,150.68 Fuzhou Meinian Medical Investment Partnership

(Limited Partnership) 35,000,000.00 35,000,000.00 Note 4 Shanghai Insurance Exchange Co., Ltd. 30,000,000.00 30,000,000.00 1.34 Shanghai Meinian Onehealth Phase I Equity

Investment Fund Partnership (Limited Partnership) 27,000,000.00 27,000,000.00 Note 5 Nanchang Beibang Physical Examination Center Co.,

Ltd 16,420,000.00 16,420,000.00 19 Shenzhen Aoya Health Management Co., Ltd. 15,200,000.00 15,200,000.00 8.94

Xi'an Meizhao Health Management Co., Ltd. 4,410,000.00 590,000.00 5,000,000.00 10

Kunming Meizhao Health Management Co., Ltd. 5,000,000.00 5,000,000.00 10

Hefei Meizhao Health Management Co., Ltd. 4,000,000.00 4,000,000.00 10

Shanghai Tianguyuan Health Technology Co., Ltd. 12,000,000.00 12,000,000.00 11.7 421,200.00

Shenzhen Meizhao Health Management Co., Ltd. 10,000,000.00 10,000,000.00 10 Zhanjiang Shangde Medical Doctor Ciming Health

Management Co., Ltd. 9,500,000.00 9,500,000.00 19 Guangzhou Meinian Onehealth Medical Technology

Co., Ltd. 9,310,000.00 9,310,000.00 12.07 Chongqing Ciming Aoya Health Management Co., Ltd. 9,000,000.00 9,000,000.00 18 Quanzhou Fengze Meinian Onehealth Management

Co., Ltd. 8,740,000.00 8,740,000.00 19

94 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Wuhan Meinian Onehealth Technology Management

Co., Ltd. 8,100,000.00 8,100,000.00 15 Dalian Meizhao Comprehensive Health Outpatient Co.,

Ltd. 6,650,000.00 6,650,000.00 19 Zhuhai Meinian Onehealth Health Management Co.,

Ltd. 5,994,000.00 2,376,000.00 8,370,000.00 18 Wuhan Meici Aoya Health Management Co., Ltd. 5,700,000.00 5,700,000.00 19 Hainan Ciming Aoya Physical Examination Hospital

Co., Ltd. 5,700,000.00 5,700,000.00 19 Taiyuan Meizhao Health Technology Co., Ltd. 5,700,000.00 5,700,000.00 16.29

Liaoyang Meizhao Health Management Co., Ltd. 5,700,000.00 5,700,000.00 19 Zhengzhou Meizhao Health Medical Management Co.,

Ltd. 5,400,000.00 5,400,000.00 10.8 Taizhou Meizhao Health Physical Examination Center

(general partnership) 5,160,000.00 5,160,000.00 11.88 Liaoyang Meizhao Health Management Co., Ltd. 5,160,000.00 920,000.00 6,080,000.00 19

Chongqing Meizhao Hospital Management Co., Ltd. 2,970,000.00 2,030,000.00 5,000,000.00 10

Shanghai Meikai Outpatient Co., Ltd. 5,000,000.00 510,560.00 5,510,560.00 11.11

Wuxi Meizhao Outpatient Co., Ltd. 5,000,000.00 5,000,000.00 10

Guangzhou Meizhao Health Management Co., Ltd. 5,000,000.00 5,000,000.00 10

Fujian Meizhao Medical Technology Co., Ltd. 5,000,000.00 5,000,000.00 10

Foshan Wanda Meizhao Health Management Co., Ltd. 5,000,000.00 5,000,000.00 10

Shanghai Meizhang Outpatient Co., Ltd. 4,875,000.00 4,875,000.00 19.5

95 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Nanjing Meiyi Outpatient Co., Ltd. 4,816,000.00 1,204,000.00 6,020,000.00 17.2 Fuzhou Ciming Aoya Health Examination Center Co.,

Ltd. 2,295,000.00 2,205,000.00 4,500,000.00 15 Fujian Meinian Onehealth Management Co., Ltd. 4,500,000.00 3,750,000.00 8,250,000.00 15

Guangzhou Kangyuan Health Technology Co., Ltd. 4,370,000.00 4,370,000.00 19

Yinchuan Meinian Onehealth Hospital Co., Ltd. 4,200,000.00 1,050,000.00 5,250,000.00 15

Wuxi Meihua Outpatient Co., Ltd. 4,151,900.00 1,928,100.00 6,080,000.00 19

Chengdu Meizhao Outpatient Co., Ltd. 4,150,000.00 4,150,000.00 10 Huai'an Mingze Meinian Onehealth Management Co.,

Ltd. 4,147,000.00 3,353,000.00 7,500,000.00 15 Changsha Meizhao Medical Management Co., Ltd. 4,000,000.00 4,000,000.00 10

Shaoxing Meizhao Out-patient Medical Co., Ltd. 4,000,000.00 4,000,000.00 10

Foshan Aoya Health Management Co., Ltd. 3,900,000.00 1,950,000.00 5,850,000.00 19.5

Yulin Ciming Outpatient Co., Ltd. 3,900,000.00 3,900,000.00 19.5

Wenzhou Meinian Onehealth Management Co., Ltd. 3,800,000.00 3,800,000.00 19 Jiujiang Meinian OnePhysical Examination Center Co.,

Ltd. 3,800,000.00 1,520,000.00 5,320,000.00 19 Zhangzhou Meinian Onehealth Hospital Co., Ltd. 3,800,000.00 3,800,000.00 19

Meizhou Meinian Onehealth Management Co., Ltd. 2,400,000.00 1,370,000.00 3,770,000.00 12.57 Qiandongnanzhou Ciming Health Management Co.,

Ltd. 2,400,000.00 1,210,000.00 3,610,000.00 19 Tianjin Ciming Aoya Hospital Management Consulting 3,600,000.00 3,600,000.00 10

96 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Co., Ltd.

Jingdezhen Meinian Onehealth Service Co., Ltd. 2,880,000.00 720,000.00 3,600,000.00 18

Xiamen Ciming Health Management Co., Ltd. 3,600,000.00 3,600,000.00 10

Ganzhou Meinian Onehealth Management Co., Ltd. 3,600,000.00 3,600,000.00 18

Cixi Meinian Comprehensive Outpatient Co., Ltd. 3,600,000.00 3,600,000.00 18 Baotou Meinian Onehealth Aiputuo Integrated

Outpatient Co., Ltd. 3,600,000.00 3,600,000.00 8.6 Linhai Meinian Risheng Hospital Co., Ltd. 3,530,000.00 3,530,000.00 10

Yichang Meinian Onehealth Management Co., Ltd. 3,519,100.00 80,900.00 3,600,000.00 10

Zhuji Meitai Health Examination Co., Ltd. 3,510,000.00 3,510,000.00 19.5 Qinhuangdao Meinian Onehealth Health Examination

Management Co., Ltd. 3,510,000.00 3,510,000.00 19.5 Benxi Meinian Onehealth Management Co., Ltd. 3,510,000.00 3,510,000.00 19.5

Shenzhen Yierkang Health Management Co., Ltd. 3,500,000.00 3,500,000.00 4.9 Mudanjiang Meinian Health Examination Service Co.,

Ltd. 3,420,000.00 3,420,000.00 19 Chongqing Meiyi Health Management Co., Ltd. 1,500,000.00 1,920,000.00 3,420,000.00 19

Nanping Meinian Onehealth Management Co., Ltd. 1,710,000.00 1,710,000.00 3,420,000.00 19 Fuzhou Changle District Meici Health Management

Co., Ltd. 1,710,000.00 1,710,000.00 3,420,000.00 19 Anxi Meinian Onehealth Management Co., Ltd. 1,910,000.00 1,510,000.00 3,420,000.00 19

Xiamen Yincheng Meinian Onehealth Management 3,420,000.00 3,420,000.00 19

97 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Co., Ltd.

Ningde Meinian Onehealth Management Co., Ltd. 3,420,000.00 3,420,000.00 19

Nan'an Meinian Onehealth Management Co., Ltd. 3,420,000.00 3,420,000.00 19

Jinjiang Meinian Onehealth Management Co., Ltd. 3,420,000.00 3,420,000.00 19

Changde Meinian Onehealth Management Co., Ltd. 3,420,000.00 3,420,000.00 19

Shenzhen Meiyu Health Management Co., Ltd. 3,420,000.00 3,420,000.00 19

Shenzhen Meipeng Health Management Co., Ltd. 3,420,000.00 3,420,000.00 19

Shenzhen Meijia Health Management Co., Ltd. 3,420,000.00 3,420,000.00 19

Shenzhen Meichen Health Management Co., Ltd. 3,420,000.00 3,420,000.00 19

Maoming Meinian Onehealth Management Co., Ltd. 3,420,000.00 3,420,000.00 19

Suzhou Meixin Outpatient Co., Ltd. 3,377,800.00 3,377,800.00 19

Longyan Meinian Onehealth Management Co., Ltd. 3,369,600.00 3,369,600.00 19.5

Baoding Meinian Onehealth Outpatient Co., Ltd. 3,344,000.00 656,000.00 4,000,000.00 16 Shangrao Meikang Medical Health Examination Center

Co., Ltd. 3,264,700.00 1,235,300.00 4,500,000.00 15 Shaoguan Meinian Onehealth Health Management

Co., Ltd. 3,240,000.00 3,240,000.00 18 Qingyuan Meinian Onehealth Health Management Co.,

Ltd. 3,240,000.00 3,240,000.00 18 Yancheng Meinian Onehealth Management Co., Ltd. 2,400,000.00 800,000.00 3,200,000.00 16

Kunshan Huatai Outpatient Co., Ltd. 2,945,000.00 190,000.00 3,135,000.00 19

98 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Liuan Meinian Onehealth Management Co., Ltd. 3,120,000.00 3,120,000.00 19.5 Laizhou Meinian Onehealth Examination Management

Co., Ltd. 3,120,000.00 3,120,000.00 19.5 Pingyi Meinian Onehealth Examination Management

Co., Ltd. 3,120,000.00 3,120,000.00 19.5 Tianshui Meinian Onehealth Management Co., Ltd. 3,120,000.00 3,120,000.00 19.5 Lianyungang Meinian Onehealth Management Co.,

Ltd. 3,120,000.00 3,120,000.00 19.5 Panjin Meinian Onehealth Management Co., Ltd. 3,120,000.00 2,730,000.00 5,850,000.00 19.5

Fushun Meinian Onehealth Management Co., Ltd. 3,120,000.00 3,120,000.00 19.5

Dujiangyan Meinian Onehealth Management Co., Ltd. 3,120,000.00 3,120,000.00 19.5 Chengdu Xindu Meinian Shangdu Health Outpatient

Co., Ltd. 3,120,000.00 2,730,000.00 5,850,000.00 19.5 Chengdu Shuangliu Meinian Onehealth Outpatient

Co., Ltd. 3,120,000.00 3,120,000.00 19.5 Chengdu Pidu Meinian Onehealth Management Co.,

Ltd. 3,120,000.00 3,120,000.00 19.5 Lincang Meinian Onehealth Examination Center Co.,

Ltd. 3,120,000.00 3,705,000.00 6,825,000.00 19.5 Shangqiu Meinian Onehealth Management Co., Ltd. 3,120,000.00 880,000.00 4,000,000.00 16 Haining Meinian Health Physical Examination Center

Co., Ltd. 1,400,000.00 1,660,000.00 3,060,000.00 17 Ciming Comprehensive Health Outpatient

Co., Ltd. 3,050,000.00 3,050,000.00 19 Changge Meinian Onehealth Management Co., Ltd. 3,040,000.00 3,040,000.00 19

Yiyang Meinian Onehealth Health Management Co., 3,040,000.00 3,040,000.00 19

99 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Ltd.

Guizhou Jizhong Health Management Co., Ltd. 3,040,000.00 3,040,000.00 19 Guilin Meinian Onehealth Health Management Co.,

Ltd. 3,020,000.00 5,657,500.00 8,677,500.00 13.35 Maanshan Meinian Onehealth Consulting Co., Ltd. 3,008,000.00 992,000.00 4,000,000.00 16

Tangshan Meijian Health Management Co., Ltd. 3,000,000.00 3,000,000.00 19

Nanjing Aoya Health Management Co., Ltd. 3,000,000.00 3,000,000.00 19 Linyi Meiming Health Examination Management Co.,

Ltd. 3,000,000.00 3,000,000.00 19 Meijian Health Technology Co., Ltd. 3,000,000.00 3,000,000.00 10

Shenyang Aoya Hospital Co., Ltd. 3,000,000.00 3,000,000.00 10

Shandong Meiming Aoya Health Consulting Co., Ltd. 3,000,000.00 3,000,000.00 6

Guangzhou Aoya Health Management Co., Ltd. 3,000,000.00 3,000,000.00 10

Tianjin Meize Outpatient Co., Ltd. 3,000,000.00 3,000,000.00 10 Chifeng Meinian Onehealth Health Management Co.,

Ltd. 3,000,000.00 6,750,000.00 9,750,000.00 15 Guizhou Meizhao Onehealth Management Co., Ltd. 2,950,000.00 2,950,000.00 5

Sanmenxia Meinian Onehealth Management Co., Ltd. 2,926,000.00 1,254,000.00 4,180,000.00 19

Zaozhuang Meinian Onehealth Technology Co., Ltd. 2,925,000.00 2,925,000.00 19.5

Honghe Ciming Health Examination Center Co., Ltd. 2,925,000.00 2,925,000.00 19.5

Zhangzhou Meinian Onehealth Management Co., Ltd. 2,925,000.00 2,925,000.00 19.5

100 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Poyang County Changjian Health Examination Center

Co., Ltd. 2,700,000.00 180,000.00 2,880,000.00 18 Linfen Meinian Health Management Consulting Co.,

Ltd. 2,880,000.00 2,880,000.00 16 Changzhou Meinian Onehealth Outpatient Co., Ltd. 2,850,000.00 2,850,000.00 5,700,000.00 19 Jining Meinian Onehealth Examination Management

Co., Ltd. 2,850,000.00 2,850,000.00 19 Anshan Meinian Onehealth Management Co., Ltd. 2,850,000.00 6,270,000.00 9,120,000.00 19 Dalian Meinian Health Yuexiang Comprehensive

Outpatient Co., Ltd. 2,850,000.00 2,850,000.00 19 Hangzhou Xiaoshan Mei Nian Jincheng

Comprehensive Clinic Co., Ltd. 2,850,000.00 2,850,000.00 19 Hangzhou Meishu Comprehensive Clinic Co., Ltd. 2,850,000.00 2,850,000.00 19

Ya'an Meinian Onehealth Management Co., Ltd. 2,850,000.00 2,850,000.00 19 Tianjin Nankai District Meizhao Health Examination

Center Co., Ltd. 2,590,000.00 220,000.00 2,810,000.00 19 Loudi Meinian Health Management Co., Ltd. 2,720,000.00 2,720,000.00 17

Yangzhou Meihao Health Management Co., Ltd. 2,700,000.00 2,700,000.00 15

Xingtai Meinian Onehealth Outpatient Co., Ltd. 2,700,000.00 2,700,000.00 18 Hangzhou Xiaoshan Meinian Jincheng Comprehensive

Outpatient Co., Ltd. 2,700,000.00 3,240,000.00 5,940,000.00 18 Fozhou Meinian Onehealth Management Co., Ltd. 2,700,000.00 2,700,000.00 18

Tongling Meinian Onehealth Consulting Co., Ltd. 2,700,000.00 2,700,000.00 18

Shiyan Meinian Onehealth Management Co., Ltd. 2,700,000.00 2,700,000.00 18

101 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Beihai Meinian Onehealth Management Co., Ltd. 2,700,000.00 2,700,000.00 19.29

Jinan Meinian Onehealth Management Co., Ltd. 2,700,000.00 2,700,000.00 18 Wulanchabu Meinian Onehealth & Health

Management Co., Ltd. 2,700,000.00 2,700,000.00 18 Jiuquan Meinian Onehealth & Health Management

Co., Ltd. 2,700,000.00 2,700,000.00 18 Chongqing Meizhao Meinian Onehealth Management

Co., Ltd. 2,700,000.00 2,700,000.00 18 Xishuangbanna Meinian Onehealth Examination

Center Co., Ltd. 2,700,000.00 2,700,000.00 18 Panzhihua Meinian Onehealth Technology Co., Ltd. 2,685,000.00 915,000.00 3,600,000.00 15

Guangshui Meinian Onehealth Management Co., Ltd. 2,625,000.00 2,625,000.00 35 Lhasa Meinian Onehealth Health Management Co.,

Ltd. 2,560,000.00 2,560,000.00 16 Shanghai Meihong Outpatient Co., Ltd. 2,500,000.00 2,500,000.00 19.5 Chengdu Meinian Onehealth Center Onehealth

Outpatient Co., Ltd. 2,500,000.00 2,500,000.00 10 Guangdong Meiciaoya Health Management Co., Ltd. 2,500,000.00 2,500,000.00 10

Shenyang Fengtian Antai Hospital Co., Ltd. 2,500,000.00 2,500,000.00 17.86

Bijie Meinian Onehealth Health Management Co., Ltd. 2,496,000.00 1,344,000.00 3,840,000.00 16 Ningbo Beilun Meijian Integrated Chinese and Western

Medicine Outpatient Co., Ltd 2,420,000.00 2,420,000.00 19 Shanghai Meihao Health Management Co., Ltd. 1,830,000.00 570,000.00 2,400,000.00 16

Zhangjiajie Meinian Onehealth Management Co., Ltd. 2,400,000.00 2,400,000.00 16

102 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Enshi Ciming Health Management Co., Ltd. 2,400,000.00 2,400,000.00 16

Chifeng Ciming Health Management Co., Ltd. 2,400,000.00 2,400,000.00 16

Wuhu Meinian Onehealth Consulting Co., Ltd. 2,400,000.00 2,400,000.00 16 Xiantao Meinian Onehealth Management Consulting

Co., Ltd. 2,400,000.00 2,400,000.00 16 Qianxinan Meinian Onehealth Examination

Management Co., Ltd. 2,400,000.00 2,400,000.00 16 Qiannan Meinian Onehealth Health Management Co.,

Ltd. 2,400,000.00 2,400,000.00 16 Yongzhou Meinian Onehealth Health Management

Co., Ltd. 2,400,000.00 2,400,000.00 16 Hengyang Meinian Onehealth Management Co., Ltd. 2,400,000.00 3,200,000.00 5,600,000.00 16

Cantou Meinian Health Management Co., Ltd. 2,400,000.00 2,094,000.00 4,494,000.00 12.84 Zhaoqing Meinian Onehealth Health Management Co.,

Ltd. 2,400,000.00 2,400,000.00 16 Yangjiang Meinian Onehealth Health Management

Co., Ltd. 2,400,000.00 3,200,000.00 5,600,000.00 16 Guangdong Huanyue Health Medical Co., Ltd. 2,400,000.00 2,400,000.00 16

Cangzhou Meinian Onehealth Outpatient Co., Ltd. 2,400,000.00 2,400,000.00 4,800,000.00 16

Ziyang Meinian Onehealth Management Co., Ltd. 2,400,000.00 2,080,000.00 4,480,000.00 16

Qujing Meinian Health Service Co., Ltd. 2,400,000.00 2,720,000.00 5,120,000.00 16 Juye Meinian Onehealth Management Service Co.,

Ltd. 2,340,000.00 2,340,000.00 19.5 Caoxian Meinian Onehealth Examination Management

Co., Ltd. 2,340,000.00 2,340,000.00 19.5

103 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Shanxian Meinian Onehealth Examination

Management Co., Ltd. 2,340,000.00 2,340,000.00 19.5 Zhenjiang Meinian Onehealth Management Co., Ltd. 2,340,000.00 2,340,000.00 35

Renshou Meinian Onehealth Management Co., Ltd. 2,340,000.00 2,340,000.00 19.5

Qionglai Meinian Onehealth Outpatient Co., Ltd. 2,340,000.00 2,340,000.00 19.5 Nanchong Meinian Onehealth Health Management

Co., Ltd. 2,280,000.00 3,420,000.00 5,700,000.00 19 Huizhou Ciming Health Management Co., Ltd. 2,250,000.00 2,250,000.00 15

Sanming Meinian Onehealth Management Co., Ltd. 2,250,000.00 2,250,000.00 15

Zibo Meinian Onehealth Management Co., Ltd. 2,250,000.00 2,250,000.00 15 Foshan Nanhai Meinian Onehealth Health

Management Co., Ltd. 2,250,000.00 2,250,000.00 15 Dezhou Meinian Onehealth Physical Examination

Management Co., Ltd. 2,240,000.00 2,560,000.00 4,800,000.00 16 Zaozhuang Meinian Onehealth Physical Examination

Service Co., Ltd. 2,235,000.00 1,065,000.00 3,300,000.00 15 Chouzhou Meinian Onehealth Management Co., Ltd. 2,200,000.00 2,200,000.00 17

Anqing Meinian Onehealth Management Co., Ltd. 2,050,000.00 2,050,000.00 19.5

Zunyi Meinian Onehealth Industry Hospital Co., Ltd. 2,050,000.00 450,000.00 2,500,000.00 5

Yiwu Meinian Onehealth Management Co., Ltd. 2,040,000.00 960,000.00 3,000,000.00 10 Dongguan Meinian Health Medical Technology Co.,

Ltd. 2,000,000.00 2,000,000.00 10 Dongguan Humen Meinian Onehealth Outpatient Co.,

Ltd. 2,000,000.00 2,000,000.00 10

104 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Guangzhou Zengcheng Meinian Health Management

Co., Ltd. 2,000,000.00 2,000,000.00 10 Hangzhou Meishu Comprehensive Outpatient Co., Ltd. 2,000,000.00 2,000,000.00 19.5 Yishui Meinian Onehealth Examination Management

Co., Ltd. 2,000,000.00 2,000,000.00 19.5 Tianjin Heping District Meinian Meijia Health

Management Co., Ltd. 2,000,000.00 2,000,000.00 10 Guangzhou Huadu District Meinian Onehealth

Management Co., Ltd. 2,000,000.00 2,000,000.00 10 Zhangjiakou Meinian Onehealth Outpatient Co., Ltd. 2,000,000.00 2,000,000.00 19.5

Yibin Meinian Onehealth Management Co., Ltd. 1,920,000.00 1,920,000.00 16 Zhongshan Ciming Meinian Onehealth Management

Co., Ltd. 1,920,000.00 1,920,000.00 16 Huanggang Meinian Health Management Co., Ltd. 1,920,000.00 2,880,000.00 4,800,000.00 16

Chongqing Meinian Onehealth Management Co., Ltd. 1,920,000.00 1,920,000.00 16

Dazhou Meinian Onehealth Management Co., Ltd. 1,920,000.00 1,920,000.00 16

Xinyu Meiyin Onehealth Physical Examination Co., Ltd. 1,920,000.00 1,280,000.00 3,200,000.00 16

Jingmen Meikang Health Management Co., Ltd. 1,880,000.00 1,880,000.00 35 Xuchang Meinian Onehealth Health Management Co.,

Ltd. 1,825,925.70 6,024,640.00 7,850,565.70 19 Shaoxing Yuecheng Meinian Outpatient Co., Ltd. 1,800,000.00 1,800,000.00 10

Huangshan Meinian Onehealth Consulting Co., Ltd. 1,800,000.00 1,800,000.00 10

Beijing Ciming Aoya Outpatient Co., Ltd. 1,800,000.00 1,800,000.00 16

105 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Putian Meinian Onehealth Management Co., Ltd. 1,800,000.00 1,800,000.00 10

Nanjing Meilu Outpatient Co., Ltd. 1,800,000.00 1,800,000.00 10

Jinzhou Meinian Onehealth Management Co., Ltd. 1,800,000.00 3,000,000.00 4,800,000.00 15

Shenzhen Meiyang Health Management Co., Ltd. 1,800,000.00 1,800,000.00 10 Guangzhou Meinian Onehealth Hospital Management

Co., Ltd. 1,800,000.00 1,800,000.00 10 Jinan Meinian Onehealth Technology Co., Ltd. 1,800,000.00 1,800,000.00 10 Shihezi City Meinian Onehealth Health Management

Co., Ltd. 1,800,000.00 1,800,000.00 15 Aksu Meinian Onehealth Wellness Management Co.,

Ltd. 1,800,000.00 1,800,000.00 15 Chengdu Wuhou Meinian Onehealth Outpatient Co.,

Ltd. 1,800,000.00 1,800,000.00 10 Chengdu Jinniu Meinian Onehealth Management

Consulting Co., Ltd. 1,800,000.00 1,800,000.00 10 Yunnan Ciming Health Service Co., Ltd. 1,800,000.00 1,800,000.00 10

Hebi Meinian Onehealth Technology Co., Ltd. 1,782,000.00 1,782,000.00 18

Huaihua Meinian Onehealth Medical Service Co., Ltd. 1,710,000.00 1,710,000.00 17

Ji'an Meinian Onehealth Examination Co., Ltd. 1,680,000.00 1,680,000.00 15

Juxian Meinian Onehealth Management Co., Ltd. 2,500,000.00 2,500,000.00 10 Wulian Meinian Onehealth Examination Management

Co., Ltd. 1,600,000.00 1,600,000.00 10 Pingliang Meinian Onehealth Health Management Co.,

Ltd. 1,515,000.00 7,395,000.00 8,910,000.00 14.85 2,510,173.67

106 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Dangtu Meinian Onehealth Management Co., Ltd. 1,500,000.00 1,500,000.00 10

Korla Meinian Ciming Health Management Co., Ltd. 1,500,000.00 1,500,000.00 10

Hangzhou Meixin Medical Outpatient Co., Ltd. 1,500,000.00 2,400,000.00 3,900,000.00 10

Luoyang Ciming Health Management Co., Ltd. 1,500,000.00 1,500,000.00 10 Huainan Meinian Onehealth Wellness Management

Co., Ltd. 1,500,000.00 1,500,000.00 15 Yangxin Meinian Onehealth Physical Examination

Management Co., Ltd. 1,500,000.00 1,500,000.00 10 Yunfu Meinyian Health Management Co., Ltd. 1,500,000.00 1,500,000.00 10 Guangzhou Fanyu District Meinian Onehealth Medical

Management Service Co., Ltd. 1,500,000.00 1,500,000.00 10 Chaoyang Meinian Onehealth Management Co., Ltd. 1,500,000.00 1,500,000.00 15 Hanzhong Meinian Onehealth Management Service

Co., Ltd. 1,500,000.00 1,500,000.00 15 Taizhou Meinian Onehealth Management Co., Ltd. 1,460,000.00 340,000.00 1,800,000.00 10

Shanghai Meizhao Wuyuan Outpatient Co., Ltd. 1,420,000.00 1,420,000.00 10 Changyi District Meinian Onehealth Technology

Management Co., Ltd. 1,409,490.00 1,409,490.00 8.71 Tianjin Binhai New Area Ciai Outpatient Co., Ltd. 1,000,000.00 350,000.00 1,350,000.00 10

Luohe Meinian Onehealth Management Co., Ltd. 1,340,000.00 660,000.00 2,000,000.00 10

Houma Meinian Onehealth Management Co., Ltd. 1,300,000.00 0.00 1,300,000.00 10 Zhoukou Meinian Onehealth Health Management Co.,

Ltd. 1,260,000.00 540,000.00 1,800,000.00 10

107 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Duqi Meinian Onehealth Management Co., Ltd. 1,170,000.00 1,170,000.00 19.5 Chuxiong Meinian Onehealth Physical Examination

Hospital Co., Ltd. 1,100,000.00 700,000.00 1,800,000.00 10 Shanghai Meiyu Outpatient Co., Ltd. 1,000,000.00 1,000,000.00 19 Liuzhou Meinian Onehealth Health Management Co.,

Ltd. 1,000,000.00 2,000,000.00 3,000,000.00 10 Nanyang Meinian Onehealth Health Technology

Management Co., Ltd. 1,000,000.00 1,000,000.00 10 Rizhao Meinian Onehealth Physical Examination Co.,

Ltd. 1,000,000.00 1,000,000.00 10 Yingkou Meinian Onehealth Technology Health

Management Co., Ltd. 920,000.00 920,000.00 16 Jiuzhou Meinian Onehealth Health Management Co.,

Ltd. 900,000.00 900,000.00 15 Urumqi Meinian Onehealth Outpatient (Limited) 900,000.00 900,000.00 15

Ordos Meinian Onehealth Management Co., Ltd. 800,000.00 800,000.00 10 Kashi Meinian Onehealth Health Management Co.,

Ltd. 700,000.00 700,000.00 10 Bazhou Meinian Onehealth Physical Examination

Center Co., Ltd. 635,000.00 115,000.00 750,000.00 5 Jiaozuo Meinian Onehealth Health Service Co., Ltd. 600,000.00 400,000.00 1,000,000.00 10

Nanning Meiyoukang Health Management Co., Ltd. 500,000.00 500,000.00 10 Lvliang Onehealth Health Technology Management

Co., Ltd. 500,000.00 1,000,000.00 1,500,000.00 10 Jincheng Meinian Onehealth Technology Health

Management Co., Ltd. 350,000.00 2,650,000.00 3,000,000.00 10

108 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Chongqing Banan Ciming Comprehensive Outpatient

Co., Ltd. 244,000.00 6,000.00 250,000.00 1 Chengdu Meinian Jieke Health Management Co., Ltd 75,000.00 75,000.00 15

Suizhou Meinian Onehealth Management Co., Ltd. 3,000,000.00 3,000,000.00

Luzhou Meinian Onehealth Technology Co., Ltd 2,930,800.00 2,930,800.00

Fuqing Meinian Onehealth Management Co., Ltd. 2,880,000.00 2,880,000.00 Suzhou Meinian Onehealth Health Management Co.,

Ltd. 2,850,000.00 2,850,000.00 Xining Meinian Onehealth Health Management Co.,

Ltd. 2,850,000.00 2,850,000.00 Liaocheng Meinian Onehealth Management Co., Ltd. 2,700,000.00 2,700,000.00 Jiangmen Meinian Onehealth Health Management Co.,

Ltd. 2,400,000.00 2,400,000.00 Huizhou Meinian Onehealth Health Management Co.,

Ltd. 2,400,000.00 2,400,000.00 Neijiang Meinian Onehealth Health Management Co.,

Ltd. 2,400,000.00 2,400,000.00 Meishan Meinian Onehealth Management Co., Ltd. 2,400,000.00 2,400,000.00 Fuxin Meinian Onehealth Health Management Co.,

Ltd. 2,250,000.00 2,250,000.00 Qingyang Meinian Onehealth Health Management Co.,

Ltd. 2,895,000.00 2,895,000.00 Zhumadian Meinian Onehealth Technology Co., Ltd 1,800,000.00 1,800,000.00 Tangshan Meinian Onehealth Health Examination

Management Co., Ltd. 2,248,860.00 2,248,860.00 Zigong Meinian Onehealth Examination Hospital Co., 1,696,000.00 1,696,000.00

109 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Book balance Proportion of shares Impairment Current cash Investees Opening Increased in this Reduced in this held by Closing balance preparation dividend balance period period invested units (%) Ltd.

Anyang Meinian Onehealth Management Co., Ltd. 1,000,000.00 1,000,000.00

1,086,981,175.7 Total 248,961,000.00 38,700,660.00 1,297,241,515.70 0

110 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Note 1: Nantong Meifu Health Industry Investment Partnership (Limited Partnership) has a total amount of RMB 1,203.00 million of which the general partner Shanghai Shunxi Investment Management Co., Ltd. has subscribed for RMB 2.00 million, and the general partner Beijing Dongfu Huitong Investment The Management Center (Limited Partnership) subscribed for RMB 1.00 million, and the limited partner Meinian Onehealthy Industry Holdings Co., Ltd. subscribed for RMB 228.00 million, and the limited partner Beijing Dongfu Tongda Investment Management Center (Limited Partnership) subscribed the capital contribution was RMB 972 million. Note 2: Shanghai Jianyi Investment Center (Limited Partnership) has a total amount of RMB 502.00 million, of which the general partner Shanghai Tianyi Asset Management Co., Ltd. has subscribed for RMB 1.00 million, and the general partner Silk Road Huachuang Investment Management (Beijing) Co., Ltd. subscribed for RMB 1 million, and limited partner Silk Road Huachuang Capital (Beijing) Co., Ltd. subscribed for RMB 5.00 million, and Shanghai Tianyi Industrial Holding Group Co., Ltd. subscribed for RMB 50.00 million, limited partnership Renhe Yinhe Jinhui Securities Asset Management Co., Ltd. (on behalf of “Yinghe Huida 187 Directional Asset Management Plan”) subscribed for RMB 333.00 million, and limited partner Great Wall Guorong Investment Management Co., Ltd. subscribed for RMB 62.00 million, limited The partner Meinian Onehealth subscribed for RMB 50.00 million. Note 3: The Nantong Meizhao Meinian Health Industry M&A Investment Fund (Limited Partnership) has a total amount of RMB 502.00 million, of which the general partner Shanghai Shunxi Investment Management Co., Ltd. has subscribed for RMB 1.00 million, and the general partner Shanghai Zhongchao Venture Capital Management Co., Ltd. subscribed for RMB 1.00 million, and the limited partner China Merchants Securities Asset Management Co., Ltd. subscribed for RMB 300 million. The limited partner Hangzhou Highly Meizhao Investment Management Partnership (Limited Partnership) subscribed for RMB 100.00 million, limited partner Shanghai Tianyi Industrial Holding Group Co., Ltd. subscribed for RMB 50.00 million, and the limited partner Mei Nian Health subscribed RMB 50.00 million. Note 4: Fuzhou Meinian Medical Investment Partnership (Limited Partnership) has a total amount of RMB 452,002,000 of which the general partner Strait Huifu Industrial Investment Fund Management Co., Ltd. has subscribed for RMB 2,000. UBS Capital Management Co., Ltd. subscribed for a capital contribution of RMB 290.00 million, and the limited partner Guizhou Mei Yida Health Consulting Co., Ltd. subscribed for a capital contribution of RMB 95.00 million. The limited partner’s US health subscription amount is RMB 67.00 million yuan. Note 5: The fund size of Shanghai Meinian Onehealth Phase I Equity Investment Fund Partnership Enterprise is RMB 393.00 million, of which the general partner Beijing Zhongrong

111 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Dingsheng Investment Co., Ltd. has subscribed for RMB 1.00 million, and its wholly-owned subsidiary Shanghai Meinian Onehealth Physical Examination Investment Management Co., Ltd. subscribed for a capital contribution of RMB 1.00 million. The limited partner Beijing Zhongrong Dingxin Investment Management Co., Ltd. subscribed for a capital contribution of RMB 325.70 million. The limited partner Meinian Onehealth’s subscribed capital of RMB 65.30 million. 13. Fixed assets

Items Closing balance Opening balance

Fixed Assets 2,712,484,638.45 2,562,138,477.09

Disposal of fixed assets

Total 2,712,484,638.45 2,562,138,477.09 Fixed assets (1) Information of fixed assets Machines and Transportation Items Buildings equipment equipment Others Total I. Original book value

1. Opening balance 96,994,872.23 2,856,271,555.74 111,087,780.61 285,561,067.21 3,349,915,275.79

2. Increasing 261,100,319.71 5,475,983.80 74,588,129.78 341,164,433.29

(1) Purchase 65,783,401.77 652,870.33 59,124,523.17 125,560,795.27 (2) Transfer from construction in 8,421,291.03 517,550.00 8,938,841.03 progress (3) Increase from business combination 186,895,626.91 4,823,113.47 14,946,056.61 206,664,796.99 3. Decreasing 16,081,198.83 2,746,132.20 608,253.59 19,435,584.62 (1) Disposal or scrapping 16,081,198.83 2,746,132.20 608,253.59 19,435,584.62 4. Closing Balance 96,994,872.23 3,101,290,676.62 113,817,632.21 359,540,943.40 3,671,644,124.46 II. Accumulated depreciation 1. Opening balance 10,646,614.86 603,836,691.90 40,466,836.97 132,826,654.97 787,776,798.70

2. Increasing 1,806,513.51 140,440,026.19 6,058,567.67 39,381,242.85 187,686,350.22

(1) Accrued 1,806,513.51 140,440,026.19 6,058,567.67 39,381,242.85 187,686,350.22

3. Decreasing 14,515,214.53 1,224,878.74 563,569.64 16,303,662.91 (1) Disposal or scrapping 14,515,214.53 1,224,878.74 563,569.64 16,303,662.91 4. Closing Balance 12,453,128.37 729,761,503.56 45,300,525.90 171,644,328.18 959,159,486.01 III. Impairment provision 1. Opening balance

112 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Machines and Transportation Items Buildings equipment equipment Others Total 2. Increasing

(1) Accrued

3. Decreasing (1) Disposal or scrapping 4. Closing Balance

IV. Book value

1. Closing balance 84,541,743.86 2,371,529,173.06 68,517,106.31 187,896,615.22 2,712,484,638.45

2. Opening balance 86,348,257.37 2,252,434,863.84 70,620,943.64 152,734,412.24 2,562,138,477.09 (2) Fixed assets leased through financing lease Accumulated Impairment provision Items Original book value depreciation Book value Equipment 124,809,634.08 27,020,752.98 97,788,881.10

Total 124,809,634.08 27,020,752.98 97,788,881.10 (3) Fixed assets leased out through operating lease

Items Closing balance on book value

Equipment 19,445,027.76

Total 19,445,027.76 14. Construction in progress

Items Closing balance Opening balance

Projects under construction 63,035,038.29 68,604,915.20

Engineering materials

Total 63,035,038.29 68,604,915.20 Construction in progress (1) Conditions of construction in progress

Closing balance Opening balance Items Book balance Impairment Book value Book balance Impairment Book value

Store decoration fee 43,362,485.05 43,362,485.05 54,617,849.08 54,617,849.08 NMR equipment under installation 13,483,320.90 13,483,320.90 7,735,646.80 7,735,646.80 Medical Service Management Information System 6,189,232.34 6,189,232.34 6,251,419.32 6,251,419.32 Construction Project Total 63,035,038.29 63,035,038.29 68,604,915.20 68,604,915.20 (2) Change of significant construction in progress in the current year

113 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Amount Opening transferred Increase Other decrease Closing balance Items Budget balance into fixed assets Store decoration fee 54,617,849.08 34,435,113.57 45,690,477.60 43,362,485.05 NMR equipment under installation 7,735,646.80 16,734,533.39 8,175,910.00 2,810,949.29 13,483,320.90 Medical Service Management Information System Construction 6,251,419.32 6,068,586.59 762,931.03 5,367,842.54 6,189,232.34 Project Total 68,604,915.20 57,238,233.55 8,938,841.03 53,869,269.43 63,035,038.29 (Cont.) Including: Proportion of Accumulated Interest Accumulated accumulative Project amount of capitalization Sources of Items interests investment to Progress (%) interest rate of this funds capitalization this budget (%) capitalization year year Under Store decoration fee Owned fund decoration Under NMR equipment under installation and Owned fund installation commissioning Medical Service Management Under Information System construction Fund Raise Construction Project 15. Intangible assets Information of intangible assets

Items Software Trademark Total

I. Original book value

1. Opening balance 81,866,374.05 104,146,924.33 186,013,298.38

2. Increasing 12,892,175.84 12,892,175.84

(1) Purchase 8,802,258.27 8,802,258.27

(2) Internal R&D

(3) Increase from business combination 4,089,917.57 4,089,917.57

3. Decreasing

(1) Disposal

(2) Derecognition part

4. Closing balance 94,758,549.89 104,146,924.33 198,905,474.22

II. Accumulated Amortization

1. Opening balance 20,536,173.50 65,771.37 20,601,944.87

2. Increasing 4,847,032.88 35,666.77 4,882,699.65

114 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Software Trademark Total

(1) Accrued 4,847,032.88 35,666.77 4,882,699.65

3. Decreasing

(1) Disposal

(2) Derecognition part

4. Closing balance 25,383,206.38 101,438.14 25,484,644.52

III. Impairment provision

1. Opening balance

Increasing

(1) Accrued

3. Decreasing

(1) Disposal

4. Closing balance

IV. Book value

1. Closing book value 69,375,343.51 104,045,486.19 173,420,829.70

2. Opening book value 61,330,200.55 104,081,152.96 165,411,353.51 16. Goodwill (1) Original value of goodwill

Increasing Decreasing The name of the invested entity or the matter of Opening balance Formed by Closing balance forming goodwill business Disposal combination Ciming Health Physical Examination Management Group Co., Ltd. 2,862,973,886.23 2,862,973,886.23 Shenzhen Hongkangjie Technology Co., Ltd. 254,541,769.69 254,541,769.69

New Health Holdings Limited 154,211,053.19 154,211,053.19

Chengdu Tianfu New District Aoya Hospital Co., Ltd. 53,726,006.53 53,726,006.53 Shenzhen Meinian Onehealth & Wellness Management Co., Ltd. 45,161,039.79 45,161,039.79 Urumqi Huarui Tianmei Health Management Co., Ltd. 44,534,692.16 44,534,692.16

Beijing Meinian Meifu Outpatient Co., Ltd. 44,210,219.63 44,210,219.63 Foshan Meinian Onehealth Physical Examination Management Co., Ltd. 41,379,426.80 41,379,426.80 Chengdu Jinjiang Meinian Onehealth Weikang Medical Outpatient Branch Co., Ltd. 40,543,460.68 40,543,460.68 Meinian Onehealth Industry Group Nantong Co., Ltd. 39,554,148.56 39,554,148.56 Hainan Meinian Onehealth Healthcare Hospital Co., Ltd. 34,798,522.93 34,798,522.93 Hefei Ciming Health Physical Examination Management Co., Ltd. 33,820,711.17 33,820,711.17

115 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Increasing Decreasing The name of the invested entity or the matter of Opening balance Formed by Closing balance forming goodwill business Disposal combination Zhongshan Meinian Onehealth Management Co., Ltd. 31,230,102.57 31,230,102.57

Changchun Baiwei Ci Kang Hospital Co., Ltd. 30,333,493.00 30,333,493.00

Wuhan Gaoxin Outpatient Co., Ltd. 28,736,159.04 28,736,159.04

Puyang Meinian Onehealth Management Co., Ltd. 25,797,617.78 25,797,617.78

Xinjiang Puhuitai Health Management Co., Ltd. 25,685,129.27 25,685,129.27 Zhuzhou Meinian Onehealth & Wellness Management Co., Ltd. 25,431,489.53 25,431,489.53 Dali Meinian Physical Examination Hospital Co., Ltd. 25,152,873.60 25,152,873.60

Wenzhou Aoya Hospital Co., Ltd. 24,782,474.88 24,782,474.88 Dalian Lushun Meinian Onehealth New City Comprehensive Outpatient Department Co., Ltd. 24,092,312.78 24,092,312.78 Luoyang Meinian Onehealth Information Consulting Co., Ltd. 23,208,425.08 23,208,425.08 Liaoyang Meinian Onehealth & Wellness Management Co., Ltd. 22,460,719.71 22,460,719.71 Hangzhou Meixi Medical Outpatient Co., Ltd. 22,377,861.17 22,377,861.17 Yantai Ciming Health Physical Examination Management Co., Ltd. 22,367,134.88 22,367,134.88 Heyuan MeiyinOnehealth Management Co., Ltd. 21,018,412.69 21,018,412.69 Puer Meinian Onehealth Physical Examination Center Co., Ltd. 20,616,526.97 20,616,526.97 Tianjin Binhai New Area Meixin Outpatient Co., Ltd. 20,607,947.55 20,607,947.55

Huludao Meinian Onehealth Management Co., Ltd. 20,262,901.85 20,262,901.85 Xiangtan Meinian Onehealth Health Management Co., Ltd. 20,192,982.14 20,192,982.14 Xinxiang Meinian Onehealth Management Co., Ltd. 19,618,877.76 19,618,877.76

Liyang Meinian Onehealth Consulting Co., Ltd. 19,563,520.73 19,563,520.73

Mianyang Meinian Onehealth Technology Co., Ltd. 19,463,255.70 19,463,255.70 Heze Meinian Onehealth Examination Management Co., Ltd. 19,239,221.74 19,239,221.74 Pingdingshan Meinian Onehealth Technology Service Co., Ltd. 18,733,424.54 18,733,424.54 Ningbo Haishu Meinnian Comprehensive Outpatient Co., Ltd. 18,493,131.07 18,493,131.07 Yuxi Meinian Onehealth Industry Co., Ltd. 17,405,420.27 17,405,420.27

Xinyang Meinian Onehealth Management Co., Ltd. 17,374,313.70 17,374,313.70 Dandong Meinian Onehealth Health Management Co., Ltd. 16,972,358.06 16,972,358.06 Leshan Meinian Onehealth Service Co., Ltd. 16,831,918.70 16,831,918.70

Suzhou Meida Outpatient Co., Ltd. 16,805,612.94 16,805,612.94

116 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Increasing Decreasing The name of the invested entity or the matter of Opening balance Formed by Closing balance forming goodwill business Disposal combination Xiamen Meinian Onehealth management Co., Ltd 16,743,631.51 16,743,631.51 Xichang Meinian Onehealth Health Management Co., Ltd. 16,526,450.46 16,526,450.46 Nanchang Meikang Health Physical Examination Center Co., Ltd. 16,268,029.59 16,268,029.59 Wuhan Meinian Yisheng Health Management Co., Ltd. 15,407,646.36 15,407,646.36 Yili Meinian Onehealth Health Management Co., Ltd. 15,243,237.37 15,243,237.37 Suining Meinian Physical Examination Hospital Co., Ltd. 15,162,158.92 15,162,158.92 Chongqing Onehealth Physical Examination Management Co., Ltd. 15,141,474.53 15,141,474.53 Daye Meinian Onehealth Physical Examination Management Co., Ltd. 14,851,246.44 14,851,246.44 Tongliao Ciming Health Management Co., Ltd. 14,101,048.93 14,101,048.93 Deyang Meinian Physical Examination Hospital Co., Ltd. 13,979,871.26 13,979,871.26 Gunagyuan Meinian Onehealth Technology Co., Ltd. 13,249,795.94 13,249,795.94 Zhengzhou Meinian Health Medical Management Co., Ltd. 13,241,169.48 13,241,169.48 Wuhan Meinian Health Management Co., Ltd. 12,672,055.29 12,672,055.29 Handan City Meinian Onehealth Management Co., Ltd. 12,625,237.93 12,625,237.93 Meinian Onehealth & Wellness Management Co., Ltd. 12,293,726.18 12,293,726.18 Yueyang Meinian Onehealth Health Management Co., Ltd. 12,198,944.99 12,198,944.99 Anhui Tzu Chi Medical Investment Management Co., Ltd. 11,952,496.78 11,952,496.78 Bozhou Meinian Onehealth Health Management Co., Ltd. 11,804,045.18 11,804,045.18 JinzhongMeinian Onehealth Management Co., Ltd. 11,707,167.20 11,707,167.20

Jiaxing Meinian Onehealth Management Co., Ltd. 11,610,377.94 11,610,377.94

Ezhou Meinian Onehealth Management Co., Ltd. 11,413,988.07 11,413,988.07 Tai'an Meinian Onehealth Physical Examination Management Co., Ltd. 11,387,029.68 11,387,029.68 Nanchang Honggu Changgeng Health Physical Examination Center Co., Ltd. 11,022,422.73 11,022,422.73 Beijing Ciming Oya Shangdi Brilliant Outpatient Branch Co., Ltd. 10,610,598.31 10,610,598.31 Xi’an Meinian Onehealth Physical Examination Management Co., Ltd. 9,852,788.67 9,852,788.67 Hami Meinian Onehealth Healthcare Management Co., Ltd. 9,758,261.51 9,758,261.51 Yichun Meinian Onehealth Physical Examination Co., Ltd. 8,806,225.48 8,806,225.48 Lanzhou Meinian Onehealth Jinmao Healthcare Management Co., Ltd. 8,805,882.61 8,805,882.61

117 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Increasing Decreasing The name of the invested entity or the matter of Opening balance Formed by Closing balance forming goodwill business Disposal combination Linyi Onehealth and Onehealth Physical Examination File Management Co., Ltd. 8,782,601.72 8,782,601.72 Weifang Meinian Huier Health Management Co., Ltd. 8,210,833.00 8,210,833.00 Linyi Meinian Health Physical Examination Management Co., Ltd. 7,810,130.25 7,810,130.25 Changchun Meinian Onehealth Yu Hao Hospital Co., Ltd. 7,776,353.10 7,776,353.10 Ningbo Yinzhou Yihe Comprehensive Outpatient Co., Ltd. 7,539,701.89 7,539,701.89 Wuhan Meinian Onehealth Physical Examination Management Co., Ltd. 7,270,863.41 7,270,863.41 Beijing Meinian Jiajing Outpatient Co., Ltd. 6,422,121.73 6,422,121.73

Beijing Meinian Lushengyuan Outpatient Co., Ltd. 5,956,525.00 5,956,525.00 Weifang Meinian Onehealth & Wellness Management Co., Ltd. 5,588,566.83 5,588,566.83 Guizhou Meinian Onehealth Kangyuan Physical Examination Center Co., Ltd. 5,051,457.36 5,051,457.36 Guangdong Youyi Health Management Co., Ltd. 5,009,235.97 5,009,235.97 Anhui Meinian Onehealth Management Consulting Co., Ltd. 4,247,500.31 4,247,500.31 Jiangsu Huakang Investment Development Co., Ltd. 4,216,052.41 4,216,052.41 Chengdu Kai'er Health Physical Examination Hospital Co., Ltd. 3,493,347.97 3,493,347.97 Kaifeng Meinian Onehealth Examination Management Co., Ltd. 2,486,575.83 2,486,575.83 Changshu Meinian Onehealth Examination Center Co., Ltd. 2,010,087.46 2,010,087.46 Jinzhou Meinian Health Management Co., Ltd. 1,893,765.66 1,893,765.66

Jiyuan Meinian Onehealth Technology Co., Ltd. 1,732,493.87 1,732,493.87 Nanjing Mei Shi Year Specialist Outpatient Department Co., Ltd. 839,465.05 839,465.05 Sichuan Hongkangjie Medical Investment Management Co., Ltd. 91,940.40 91,940.40 Anhui Nuoyi Health Management Co., Ltd. 108,421,058.94 108,421,058.94 Fuqing Meinian Onehealth Health Management Co., Ltd. 45,272,666.54 45,272,666.54 Tangshan Meinian Onehealth Health Examination Management Co., Ltd. 36,223,524.36 36,223,524.36 Jiangmen Meinian Onehealth Health Management Co., Ltd. 24,685,452.97 24,685,452.97 Zigong Meinian Onehealth Examination Hospital Co., Ltd. 18,135,727.98 18,135,727.98 Xining Meinian Onehealth Health Management Co., Ltd. 16,927,482.43 16,927,482.43 Zhumadian Meinian Onehealth Technology Co., Ltd 16,512,093.80 16,512,093.80 Huizhou Meinian Onehealth Health Management Co., Ltd. 16,402,015.11 16,402,015.11

118 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Increasing Decreasing The name of the invested entity or the matter of Opening balance Formed by Closing balance forming goodwill business Disposal combination Qingyang Meinian Onehealth Health Management Co., Ltd. 16,116,850.67 16,116,850.67 Anyang Meinian Onehealth Management Co., Ltd. 14,208,309.91 14,208,309.91

Luzhou Meinian Onehealth Technology Co., Ltd 13,365,580.84 13,365,580.84 Neijiang Meinian Onehealth Health Management Co., Ltd. 13,231,552.78 13,231,552.78 Meishan Meinian Onehealth Management Co., Ltd. 12,802,135.40 12,802,135.40 Suzhou Meinian Onehealth Health Management Co., Ltd. 10,613,557.69 10,613,557.69 Liaocheng Meinian Onehealth Management Co., Ltd. 10,143,665.41 10,143,665.41

Suizhou Meinian Onehealth Management Co., Ltd. 8,845,502.82 8,845,502.82 Fuxin Meinian Onehealth Health Management Co., Ltd. 7,990,344.27 7,990,344.27 Total 4,739,177,185.62 389,897,521.92 5,129,074,707.54 (2) Goodwill impairment test process The Company conducts goodwill impairment testing in combination with goodwill-related asset groups or asset group combinations that benefit from the synergies of business combinations. Since it is more difficult to directly obtain the fair market value of an asset group or asset group combination that includes goodwill, the recoverable amount of the asset group or asset group combination is calculated using the method of estimating the present value of future cash flows. The Company prepares and forecasts the cash flow for the next five years based on the five-year cash flow forecast approved by the Company, historical actual operating data, industry development trend, expected income growth rate, gross profit margin and other indicators. The cash flow after the forecast period remains unchanged. The pre-tax discount rate used in the flow forecast period is 13.40%~19.00%. Other key data used in the impairment test include: expected physical examinations, physical examination unit price, medical examination costs, and other related expenses. The Company determines the above key data based on historical experience and forecasts of market development. The discount rate adopted by the Company is the pre-tax rate that reflects the current market currency time value and the specific risk of the relevant asset group or asset group combination. The above estimate of the recoverable amount indicates that the goodwill of the investment has not been impaired.

119 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

17. Long-term deferred expenses Amortization this Other Opening balance Items Increasing year Decreasing Closing balance Store decoration fee 721,008,860.26 145,699,664.24 136,334,346.48 730,374,178.02 Expenditure for renovation of No.91, Beiyuan Road 67,273,615.28 1,613,215.00 2,505,383.58 66,381,446.70 Expenditure for long-term house leasing right 16,961,538.68 605,769.24 16,355,769.44 Financial service custodian fee 19,790,040.21 93,600.00 2,900,673.47 16,982,966.74 Rent 903,825.23 2,600,000.00 861,717.00 2,642,108.23

Other 1,303,279.25 2,058,965.77 505,845.49 2,856,399.53

Total 827,241,158.91 152,065,445.01 143,713,735.26 835,592,868.66 18. Deferred tax assets and deferred tax liabilities (1) Breakdown of deferred tax assets

Closing balance Opening balance Items Deductible temporary Deductible temporary Deferred tax assets Deferred tax assets difference difference Deductible loss 451,181,933.40 106,013,976.07 150,536,061.85 33,909,376.63

House rent 111,588,176.65 24,914,506.16 110,882,856.84 24,621,000.93 Provision for assets impairment 107,853,279.14 23,100,594.16 76,549,974.13 15,945,128.41 Unrealized profits of internal transactions 19,329,049.00 4,832,262.25 21,404,049.00 5,351,012.25 Fixed Assets under finance Lease 9,386,632.86 2,276,900.14 7,611,077.93 1,849,788.05 Asset evaluation impairment for business combination not involving 1,212,445.90 303,111.55 1,336,749.67 334,187.49 enterprises under common control Others 5,770,990.52 977,747.63 6,070,990.52 1,022,747.63

Total 706,322,507.47 162,419,097.96 374,391,759.94 83,033,241.39 (2) Breakdown of deferred tax liabilities

Closing balance Opening balance Items Taxable temporary Taxable temporary Deferred tax liabilities Deferred tax liabilities difference difference Value-added assessment of business combination assets under non-identical 21,583,476.07 3,692,593.60 23,796,028.43 4,045,371.70 control Step-by-step transactions to control changes in fair 206,564,111.42 45,368,741.07 206,564,111.42 45,368,741.07 value Changes in fair value gains and losses 193,762,450.00 45,219,477.50 Total 421,910,037.49 94,280,812.17 230,360,139.85 49,414,112.77

120 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

(3) Details of deductible temporary differences with deferred tax assets not recognized

Items Closing balance Opening balance

Recoverable loss 570,698,070.50 482,017,560.64

Impairment of assets 9,163,733.33 8,338,554.79

House rental fee 651,464.42 651,464.42

Others 15,571.88 15,571.88

Total 580,528,840.13 491,023,151.73 (4) The deductible losses of unrecognized deferred tax assets will be due in the following year.

Year Closing balance Opening balance Remarks

2019 26,238,298.30 26,238,298.30

2020 31,061,456.03 31,061,456.03

2021 137,127,868.37 139,407,144.08

2022 135,417,391.42 135,446,953.37

2023 150,917,708.24 149,863,708.86

2024 89,935,348.14

Total 570,698,070.50 482,017,560.64 19. Other non-current assets

Items Closing balance Opening balance

Prepayment for equity acquisition 275,572,195.49 171,382,245.28

Prepayment for equipment 48,545,322.31 49,245,034.82

Total 324,117,517.80 220,627,280.10 20. Short-term borrowings

Items Closing balance Opening balance

Pledged loan 201,421,746.42 240,419,870.37

Mortgage loan 43,500,000.00 42,000,000.00

Guaranteed loan 2,085,200,000.00 2,100,330,000.00

Credit loan 31,046,000.00 31,000,000.00

Total 2,361,167,746.42 2,413,749,870.37

Note 1: In 2018, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, used the accounts receivable as the pledge to borrow from Shanghai Branch of Standard Chartered Bank (China) Co., Ltd., and the Company provided a maximum guarantee of not

121 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 more than RMB 160.00 million. As at June 30, 2019, the balance of borrowings was RMB 127,390,200. Note 2: In 2018, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, used the accounts receivable as a pledge to borrow from BNP Paribas (China) Co., Ltd., and the Company provided a maximum guarantee of not more than RMB 100.00 million. The balance of borrowings on June 30, 2019 was RMB 74.0315 million. Note 3: In 2018, Ciming Health Physical Examination Management Group Co., Ltd., a subsidiary of the Company, borrowed RMB 42.00 million from Guangfa Bank Co., Ltd. Beijing Weigongcun Sub-branch with fixed assets as collateral. The balance of loans as at June 30, 2019 was RMB 42.00 million. Note 4: In 2019, Jiaxing Meinian Onehealth Management Co., Ltd., a subsidiary of the Company, borrowed RMB 1.50 million from Zhejiang Hecheng Rural Commercial Bank Co., Ltd. Nanhu Branch, and its shareholder Xu Yongjun was located in Zhonghuan West Road, Economic Development Zone, Xiuzhou District, Jiaxing City. Room 7-A, Room 7-B, Building B, Ocean Building No. 1000 (Grant No.: Jiatu Guoyong (2007) No. 272694, Jiatuo National Use (2007) No. 272696, Jiafang Quanzheng Hezi No. 00204734, Jiafang Quanzheng Hezi No. 00204808) as a mortgage, the maximum insured amount is 2.14 million yuan, and the balance of loans as at June 30, 2019 is 1.50 million yuan. Note 5: In 2019, the Company provided guarantees to the subsidiary Minnesota Health Industry (Group) Co., Ltd. to China Minsheng Bank Co., Ltd. Shanghai Branch for RMB 1,400.00 million and the balance of loans as at June 30, 2019 was RMB 600.00 million. Note 6: In 2019, the Company provided guarantees for its subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to China CITIC Bank Co., Ltd. Shanghai Jingan Sub-branch for a loan of RMB 300.00 million, and the balance of loans as at June 30, 2019 was RMB 300.00 million. Note 7: In 2018, the Company provided guarantees to the subsidiary Pudong Development Bank Co., Ltd. Qingpu Branch for the loan of RMB 350.00 million for the subsidiary Mei Nian Health Industry (Group) Co., Ltd., and the balance of loans as at June 30, 2019 was RMB 285.00 million. Note 8: In 2019, the Company provided guarantee for the subsidiary company Citibank Health (Group) Co., Ltd. to Citibank (China) Co., Ltd. Shanghai Branch for a revolving loan of RMB 200 million. The balance of the loan as at June 30, 2019 was RMB 200.00 million. Note 9: In 2019, the Company provided guarantees for the subsidiary Company, Midea Health Industry (Group) Co., Ltd., to the Bank of Shanghai Branch of the Industrial Bank Co.,

122 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Ltd. to provide loans of RMB 200.00 million. The balance of loans as at June 30, 2019 was RMB 200.00 million. Note 10: In 2019, the Company provided guarantees to the subsidiary Pudong Development Bank Co., Ltd. Qingpu Branch for the loan of RMB 195.00 million for the subsidiary Mei Nian Da Healthy Industry (Group) Co., Ltd., and the balance of loans as at June 30, 2019 was RMB 195.00 million. Note 11: In 2019, the Company provided guarantees for the subsidiary Yantai Great Health Industry (Group) Co., Ltd. to Shanghai Pudong Branch Co., Ltd. Pudong Branch for loans of RMB 149.00 million. The balance of loans as at June 30, 2019 was RMB 149.00 million. Note 12: In 2019, the Company provided guarantees to the subsidiary Bank of China Great Health Industry (Group) Co., Ltd. to Dalian Bank Co., Ltd. Shanghai Branch for a loan of RMB 100 million, with a maximum insured amount of RMB 100.00 million, as at June 30, 2019. The balance of the loan was RMB 100.00 million. Note 13: In 2019, the Company provided guarantees for the subsidiary Meinian Onehealthy Industry (Group) Co., Ltd. to HSBC Bank (China) Co., Ltd. Shanghai Branch for a loan of RMB 50.00 million, with a maximum insured amount of RMB 55.00 million, as at June 30, 2019. The balance of daily loans was RMB 50.00 million. Note 14: In 2018, Wuxi Huakang Clinic Co., Ltd., a subsidiary of the Company, borrowed RMB 4.00 million from Wuxi Binhu Sub-branch of Agricultural Bank of China Co., Ltd., and Xu Zhaorong and Ren Liping provided guarantees for the loan. The maximum guarantee amount was 5.50 million yuan, as at June 30, 2019. The balance of loans was RMB 4.00 million. Note 15: In 2019, Yuxi Meinian Onehealth Industry Co., Ltd., a subsidiary of the Company, signed a loan contract with China Construction Bank Co., Ltd. Jianhua Yuxi Branch, with Wang Yunhua as the co-borrower. The balance of loans as at June 30, 2019 was RMB 2.00 million. Note 16: In 2019, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, borrowed from Ningbo Branch of Ningbo Tongshang Bank Co., Ltd., and the Company provided a maximum guarantee of not more than RMB 30 million. The balance of loans as at June 30, 2019 was RMB 0.20 million. 21. Notes payable

Items Closing balance Opening balance

Commercial acceptance

Bank acceptance bill 663,758.20 30,781,500.00

Total 663,758.20 30,781,500.00 22. Accounts payable

123 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Closing balance Opening balance

Materials payable 414,700,417.39 338,106,469.38

Rent and management fee 235,498,559.10 172,484,748.09

Outsourced physical examination fee 131,751,418.41 106,893,642.27

Delivery inspection fee 101,196,623.37 110,383,654.18

Consulting fee 27,358,541.46 20,275,437.31

Equipment inspection fee and maintenance fee 8,492,202.75 6,978,238.40

Car rental fee 4,823,032.54 4,239,684.39

Others 9,989,065.25 13,359,132.81

Total 933,809,860.27 772,721,006.83 23. Advanced from customers

Items Closing balance Opening balance

Physical examination fee 647,417,832.91 1,131,991,554.97

Consulting fee for finance lease 225,332,304.51 235,524,364.26

Membership fee 23,242,010.12 24,858,154.65

Inspection fees 4,958,093.16 17,250,338.11

Franchise chain fee 4,883,490.00 6,768,207.18

Total 905,833,730.70 1,416,392,619.17 24. Employee benefits payable (1) Presentation of employee benefits payable

Items Opening balance Increase Decrease Closing balance

I. Short-term compensation 439,373,190.29 1,539,744,991.06 1,649,562,556.13 329,555,625.22 II. Post-employment benefits defined contribution plan 6,399,429.44 123,835,849.69 121,189,579.57 9,045,699.56 III. Termination benefits 12,000.00 12,000.00 IV. Other welfare due within one year Total 445,772,619.73 1,663,592,840.75 1,770,764,135.70 338,601,324.78 (2)Presentation of short-term remuneration Items Opening balance Increase Decrease Closing balance 1. Wage, bonus, allowance and subsidy 427,066,193.47 1,334,170,066.49 1,452,968,464.22 308,267,795.74 2. Employee welfare 647,658.10 42,985,061.96 42,791,207.52 841,512.54

3.Social insurance expenses 3,833,880.85 65,794,060.13 63,908,919.54 5,719,021.44 Including: Medical insurance premiums 3,373,212.58 58,859,216.04 57,410,877.87 4,821,550.75

124 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Opening balance Increase Decrease Closing balance

Industrial injury insurance premium 139,419.39 1,751,715.68 1,705,177.65 185,957.42

Maternity insurance premium 321,248.88 5,183,128.41 4,792,864.02 711,513.27

4. Housing fund 2,000,118.37 34,852,392.30 33,767,799.25 3,084,711.42 5. Labor-union expenditure and employee education costs 4,410,831.24 11,113,629.86 9,971,184.90 5,553,276.20 6. Short-term compensated absences 7. Short-term profits sharing plan

8.Others 1,414,508.26 50,829,780.32 46,154,980.70 6,089,307.88

Total 439,373,190.29 1,539,744,991.06 1,649,562,556.13 329,555,625.22 (3)Presentation of defined contribution plan Increase in the Decrease in the Items Opening balance Closing balance current year current year 1.Basic pension insurance 6,106,855.77 119,833,147.35 117,249,247.71 8,690,755.41

2.Unemployment insurance premiums 292,573.67 4,002,702.34 3,940,331.86 354,944.15

3. Enterprise annuity payment

Total 6,399,429.44 123,835,849.69 121,189,579.57 9,045,699.56 25. Tax payable

Items Closing balance Opening balance

Corporate income tax 57,786,335.54 140,872,177.04

Individual income tax 7,520,929.15 7,899,611.69

Value-added tax 2,436,579.81 5,484,995.47

Security fund for the disabled 2,217,555.40 1,216,976.00

Stamp tax 326,369.69 347,794.96

Property tax 129,998.40 92,198.40

Urban maintenance and construction tax 40,150.85 257,717.64

Education surcharge 30,208.73 222,449.19

Others 120,832.04 87,324.56

Total 70,608,959.61 156,481,244.95 26. Other payables

Items Closing balance Opening balance

Interest payable 51,885,525.31 55,119,683.93

Dividends payable 179,181,454.86 8,315,608.32

Other payables 522,099,647.96 526,961,622.25

Total 753,166,628.13 590,396,914.50

125 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

(1)Interests Payable

Items Closing balance Opening balance

Bond interests payable 37,238,304.14 41,175,832.58

Interests payable for long-term loan 10,713,728.81 9,627,954.07

Interests payable for short-term loan 3,933,492.36 4,315,897.28

Total 51,885,525.31 55,119,683.93 (2)Dividends Payable

Items Closing balance Opening balance China Securities Depository and Clearing Co., Ltd. Shenzhen Branch 165,092,877.67 Zhang Ruixia 3,078,644.43

Hu Qiuhong 2,603,994.00

Jin Xujing 1,786,900.00 877,400.00

Zhang Chun 1,675,714.29

Wu Peng 1,231,372.55

Dong Yongtian 500,200.00 418,568.89

Zhou Shaoying 363,348.00

Sun Hu 430,011.76 427,675.80

Yang Shuo 277,058.82

Wang Yucheng 250,500.00 209,684.45

Mao Lanping 250,500.00 209,684.45

Guo Jiangxia 250,100.00 209,284.45 OuKe Express International Trade Wenzhou Co., Ltd. 220,187.12 220,187.12 Sun Yawen 188,064.27 188,064.27

Pan Wanbing 141,048.21 141,048.21

Yang Chunyan 133,909.03 133,909.03

Li Yan 133,909.03 133,909.03

Hu Yan 129,411.76 176,054.47

Liu Jing 129,411.76 176,054.47

Yang Jingwei 84,628.92 84,628.92

Wang Yan 77,628.42 77,628.42

Chen Lengmu 61,021.11 61,021.11

Sun Qingzhen 47,016.07 47,016.07

Fan Shuxian 19,407.11 19,407.11

126 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Closing balance Opening balance

Hu Xiaoshan 15,525.68 15,525.68

Gong Tao 9,064.85 9,064.85 Excellence in Future (Beijing) Education Consulting Co., Ltd. 3,388,690.00 Hu Chenggong 477,330.46

Guo Hongqi 454,660.91

Zhang Shangyi 159,110.15

Total 179,181,454.86 8,315,608.32 (3)Other Payables Category by nature

Items Closing balance Opening balance

Equity acquisition 190,405,716.70 148,077,371.90

Equipment payables 109,808,891.64 126,665,985.74

Current payables 87,788,967.45 91,876,888.90

Decoration fee 51,217,677.09 45,720,824.70

Deposit and margin 25,368,749.38 25,821,497.85

Equipment purchase warranty 20,151,000.00 21,351,000.00

Personal loan 10,441,315.06 5,639,599.18

Withholding and paying social security fund 7,619,134.56 4,670,943.91

Service charges 2,838,194.03 4,985,064.62

Collection and payment of employee shareholding 58,021.30 30,706,960.90

Others 16,401,980.75 21,445,484.55

Total 522,099,647.96 526,961,622.25 27. Non-current liabilities within one year

Items Closing balance Opening balance

Long-term loans within one year (Note VI.28) 968,893,952.84 766,677,149.83

Bonds payable within 1 year (Note VI.29) 398,622,894.59

Long-term payables within one year (Note VI. 30) 56,508,180.53 61,001,825.66

Total 1,424,025,027.96 827,678,975.49 28. Long-term borrowings

Items Closing balance Opening balance

1,477,780,597.62 1,253,646,099.73

Mortgaged loan 1,357,048.15 3,282,377.48

127 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Closing balance Opening balance

Guaranteed loan 1,071,001,768.73 824,954,813.38

Credit loan 28,750,000.00 38,350,000.00

Less: Long-term loans due within one year (Note VI. 27) -968,893,952.84 -766,677,149.83

Total 1,609,995,461.66 1,353,556,140.76

Note 1: In 2015, the Company pledges 31.00% of the equity of Shenzhen Hongkangjie Technology Co., Ltd., a subsidiary of the Company, who borrow 42.00 million from Shanghai Pudong Development Bank Co., Ltd., Shanghai Branch. As at June 30, 2019, the balance of the loan was RMB 34.00 million. Note 2: In 2016, the Company held 41.00% equity of Hami Meinian Onehealth Health Management Co., Ltd., 40.00% equity of Yili Meinian Onehealth Management Co., Ltd., It borrowed RMB 42.50 million from China Merchants Bank Co., Ltd. Shanghai Branch. The balance of loans as at June 30, 2019 was RMB 17.42 million. Note 3: In 2016, the Company pledges 13.00% equity of Xi'an Meinian Health Health Management Co., Ltd., a subsidiary held by it, and borrows RMB 8.722 million from China Merchants Bank Co., Ltd. Shanghai Branch. The loan was as of June 30, 2019. The balance is RMB 3.722 million. Note 4: In 2017, the Company held 85.00% equity of Chengdu Tianfu New District Aoya Hospital Co., Ltd., 51.00% equity of Ningbo Haishu Meinian Integrated Clinic Co., Ltd., and 80.66% equity of Suzhou Meida Clinic Co., Ltd. In the United States, the large-scale health deposit of RMB 1.3 million was obtained as a pledge to obtain a loan of RMB 50.00 million from the business department of China Merchants Bank Co., Ltd. Shanghai Branch. The balance of loans as of June 30, 2019 was RMB 35.00 million. Note 5: In 2018 and 2019, the Company holds a 51.00% stake in Xinxiang Meinian Health Management Co., Ltd., a 51.00% stake in Wuhan Meinian Health Management Co., Ltd., and Fuyang Meinian Health Management Co., Ltd. 72.00% of the shares, 75.00% of the equity of Hainan Mei Nian Health Hospital Co., Ltd. and 100.00% of the equity of Beijing Meinian Meifu Clinic Co., Ltd. as pledge, accumulatively borrowed RMB 349.42 million from Ping An Bank Co., Ltd. Shanghai Branch, as at June 30, 2019, the balance of loans was RMB 285.60 million. Note 6: In 2018, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, used the accounts receivable as the pledge to borrow from Shanghai Songjiang Sub-branch of China Everbright Bank. The Company provided the maximum guarantee of not more than RMB 20.00 million to 2019. The balance of loans on June 30 was RMB 152,559,100. Note 7: In 2018, the Company's subsidiary, Meinian Onehealth Industry (Group) Co., Ltd.,

128 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 pledges 100% of its equity in Shanghai Meijian Clinic Co., Ltd. and 100% equity of Shanghai Meijin Clinic. The Company borrowed RMB 80.00 million from the Shanghai Branch of Ping An Bank Co., Ltd., and the Company provided guarantees. The balance of loans as at June 30, 2019 was RMB 72.00 million. Note 8: Shanghai Meixin Finance Leasing Co., Ltd., a subsidiary of the Company, in 2016, 2017, 2018 and 2019, with the accounts receivable as the pledge, borrowed from Shanghai Pudong Development Bank Co., Ltd. Qingpu Sub-branch, which was During the period from August 31, 2016 to November 19, 2023, the maximum guarantee of not more than RMB 294.00 million was provided. The balance of loans as of June 30, 2019 was RMB 293,329,400.00. Note 9: Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company in 2016, 2017, 2018 and 2019, pledges the accounts receivable and borrows from HSBC (China) Co., Ltd. Shanghai Branch, which is provided by the Company. The maximum amount of guarantee is not more than 300.00 million, and the balance of loans as of June 30, 2019 is RMB 259,663,200. Note 10: In 2017, 2018 and 2019, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, pledges the accounts receivable and borrows from Hang Seng Bank (China) Co., Ltd. Shanghai Branch, which provides the maximum amount of guarantees no more than RMB 150.00 million. As at June 30, 2019 was RMB 135,086,400 Note 11: Shanghai Meixin Finance Leasing Co., Ltd., a subsidiary of the Company, in 2018 and 2019, with the accounts receivable as the pledge, borrowed from DBS Bank (China) Co., Ltd., and the Company provided the highest amount of no more than RMB 200.00 million. As for the guarantee, the balance of loans as of June 30, 2019 was RMB 183,100,600. Note 12: In 2019, the Company's subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., pledges 58.66% of its equity interest in Hangzhou Meixi Medical Clinic Co., Ltd., and the Company provides guarantees to borrow from the Shanghai Songjiang Sub-branch of China Everbright Bank. RMB 7.00 million, as of June 30, 2019, the balance of loans was RMB 6.30 million. Note 13: In 2017, Haikou Ciming Health Physical Examination Clinic (general partnership), a subsidiary of the Company, borrowed RMB 1.50 million from China Post Savings Bank Co., Ltd. Haikou South Road Branch of Haikou City, and was affiliated to Haikou Ciming Health Physical Examination Clinic (general) Shareholders Shaqibin, Liu Xiaofeng and Hainan Meinian Health Hospital Co., Ltd., a subsidiary of the Company, are located in the A301 store on the 3rd floor of Binjiang Holiday City, No. 362, Binjiang Road, Qiongshan District, Haikou City. (Warrant number: Haikou City Real Estate Certificate Haifangzi No. HK454142) as a mortgage provides

129 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 joint and several liability guarantees for the loan, the maximum insurance amount is RMB 1.5 million, and the balance of loans as of June 30, 2019 is RMB 729,500. Note 14: In 2017, Haikou Ciming Health Physical Examination Clinic (general partnership), a subsidiary of the Company, borrowed RMB 1.20 million from Haikou Hailu South Road Branch of China Postal Savings Bank Co., Ltd., a subsidiary of Haikou Ciming Health Physical Examination Clinic (general) Shareholders Shaqibin, Liu Xiaofeng and Hainan Mei Nian Health Hospital Co., Ltd., a subsidiary of the Company, are located in the A301 store on the 3rd floor of Binjiang Holiday City, No. 362, Binjiang Road, Qiongshan District, Haikou City. (Warrant number: Haikou City Real Estate Certificate Haifangzi No. HK454142) as a mortgage provides joint and several liability guarantees for the loan, the maximum insurance amount is RMB 1.20 million, and the balance of loans as of June 30, 2019 is RMB 627,600. Note 15: Hainan Meinian Onehealth Hospital Co., Ltd., a subsidiary of the Company in 2018, provided joint and several liability guarantees by Shaqibin, Liu Xiaofeng and Hainan Liushahe Decoration Engineering Co., Ltd., with a maximum insured amount of RMB 19.00 million, and China Postal Savings Bank. Haikou Branch of the Company limited the Company to sign a fixed asset loan contract. The balance of loans as of June 30, 2019 was RMB 10,651,800. Note 16: In 2017, the Company provided guarantees for the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to the Bank of China Branch of Ping An Bank Co., Ltd. for RMB 235.50 million. The balance of loans as of June 30, 2019 was RMB 153.35 million. Note 17: In 2018, the Company provided guarantees for the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to the Bank of China Branch of Ping An Bank Co., Ltd. for a loan of RMB 40.00 million. The balance of loans as of June 30, 2019 was RMB 6,000 million. Note 18: In 2018, the Company provided guarantees to the subsidiary Minnesota Health Industry (Group) Co., Ltd. to China Minsheng Bank Co., Ltd. Shanghai Branch for a loan of RMB 100,000. The balance of loans as of June 30, 2019 was RMB 95.00 million. Note 19: In 2019, the Company provided guarantee for the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to China Minsheng Bank Co., Ltd. Shanghai Branch for a loan of RMB 300 million, the maximum guarantee amount was RMB 500 million, as of June 30, 2019 The daily loan balance is RMB 300.00 million. Note 20: In 2019, the Company provided guarantees for the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to the Shanghai Songjiang Sub-branch of China Everbright Bank for a loan of RMB 150.00 million. The balance of loans as of June 30, 2019 was RMB 150.00 million.

130 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Note 21: The long-term borrowing rate range is 4.0375% to 6.7000%。 29. Bonds payable (1) Bonds payable

Items Closing balance Opening balance

17 Meinian MTN001 397,778,749.98

18 Meinian 01 498,901,390.30 498,344,896.76

XS1897431570 1,338,012,207.14

Total 1,836,913,597.44 896,123,646.74 (2) Changes in bonds payable (excluding other financial instruments such as preferred stocks classified as financial liabilities, perpetual bonds, etc.) Name of Bond Face value Date of issuance Term to maturity Issuing value Opening balance

17 Meinian MTN001 400,000,000.00 2017-6-5 3 years 396,037,735.85 397,778,749.98

18 Meinian 01 500,000,000.00 2018-3-19 3years 497,641,509.43 498,344,896.76

XS1897431570 1,343,880,000.00 2019-4-3 2years 1,303,543,105.83

Subtotal 2,243,880,000.00 2,197,222,351.11 896,123,646.74 Less: Part of the year-end balance due -400,000,000.00 -396,037,735.85 within one year Total 1,843,880,000.00 - - 1,801,184,615.26 896,123,646.74 (Cont.) Interest accrued Amortization of Repayment Name of Bond Issued this year Closing balance by book value premium and discount this year 17 Meinian MTN001 -844,144.61 398,622,894.59

18 Meinian 01 -556,493.54 498,901,390.30

XS1897431570 1,343,880,000.00 5,867,792.86 1,338,012,207.14

Subtotal 1,343,880,000.00 4,467,154.71 2,235,536,492.03 Less: Part of the year-end balance due -398,622,894.59 within one year Total 1,343,880,000.00 4,467,154.71 1,836,913,597.44

Note: The Company publicly issued corporate bonds to qualified investors in 2018. The bond term is 3 years. With the end of the second period, the issuer adjusts the coupon rate option and the investors put options. 30. Long-term payable

Items Closing balance Opening balance

Long-Term Payable 116,547,135.53 99,752,675.75

Special accounts payable 800,000.00 800,000.00

131 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Closing balance Opening balance

Total 117,347,135.53 100,552,675.75 (1) Long-term payable

Items Closing balance Opening balance

VAT payable for finance lease 74,422,085.71 82,668,550.07

Margin payable for finance lease 56,055,867.50 32,833,482.50

Equipment for leaseback 27,582,778.80 30,883,725.27

Equipment payable for financing leases 11,965,010.50 14,088,743.57

Equipment payable for installment payment 3,029,573.55 280,000.00

Less: due within one year (Notes VI, 27) -56,508,180.53 -61,001,825.66

Total 116,547,135.53 99,752,675.75 (2) Special account payable Increase in the Decrease in the Closing Reasons for the Items Opening balance current year current year balance formation Taian Ciming Health Physical The finance bureau Examination Construction 800,000.00 800,000.00 appropriated special Project funds Total 800,000.00 800,000.00 ——

Note: Tai'an Ciming Health Physical Examination Construction Project is a subsidiary of the Company, Tai'an Meinian Health Physical Examination Management Co., Ltd. According to the Tai'an Municipal Finance Bureau and the Tai'an Development and Reform Commission document “On the allocation of the 2014 municipal service industry development guidance project” The "Notice on Funds" was changed to receive the special fund of 800,000.00 yuan from the Tai'an City Finance Bureau. As of June 30, 2019, the project has not been accepted. 31. Deferred income Opening Increase in the Decrease in the Items Closing balance Reasons for the formation balance current year current year The finance bureau appropriated Government subsidy 4,950,000.00 300,000.00 4,650,000.00 special funds Total 4,950,000.00 300,000.00 4,650,000.00 — Including, projects involving government subsidies: New The amount of Other income Opening subsidy non-operating amount is Other Closing Related to Items balance amounts income is included included in changes balance assets/benefits this year in the current year this year SME public service Related to platform 4,950,000.00 300,000.00 4,650,000.00 construction assets subsidy Total 4,950,000.00 300,000.00 4,650,000.00

132 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Note: On December 14, 2018, the Beijing Municipal Commission of Economics and Information Technology received a subsidy of RMB 5.00 million for the construction of the SME Genetic Testing Service Platform. The capital investment of the project is mainly investment in fixed assets equipment, which is a government subsidy related to assets. 32. Other non-current liabilities

Items Closing balance Opening balance Equity of other partners of Haikou Ciming Health Physical Examination Clinic (General Partnership) 308,400.70 330,675.54 Total 308,400.70 330,675.54 33. Share capital

Increase and decrease in the current year (+\-) Issuance Items Opening balance Shares Accumulation fund Closing balance New Other Subtotal donation Share transfer shares Total shares 3,121,566,956.00 3,121,566,956.00 34. Capital reserve

Items Opening balance Increase Decrease Closing balance

Capital premium 1,331,871,192.64 100,673,024.52 1,231,198,168.12

Total 1,331,871,192.64 100,673,024.52 1,231,198,168.12

Note: The Company acquired minority shareholders' equity in the current period, and the difference between the payment consideration and the share of the shareholding according to the new shareholding ratio was RMB 100,673,024.52, reducing the capital reserve-capital premium. 35. Treasury stock

Items Opening balance Increase Decrease Closing balance The Company's shares acquired for employee stock ownership plans or 83,515,021.33 130,087,955.72 213,602,977.05 equity incentives Total 83,515,021.33 130,087,955.72 213,602,977.05 36. Other comprehensive income

Amount incurred for the current year Less: Net amount that is recorded Amount Attributed to Attributable to Opening into OCI Less: Closing Items before parent non-controlling Balance and Income balance income tax company shareholders transferred taxes this year after tax after tax into profit or loss for the period

133 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Amount incurred for the current year Less: Net amount that is recorded Amount Attributed to Attributable to Opening into OCI Less: Closing Items before parent non-controlling Balance and Income balance income tax company shareholders transferred taxes this year after tax after tax into profit or loss for the period Other comprehensive income that will be reclassified 518,850.52 -229,729.53 -229,729.53 289,120.99 into profit or loss Including: foreign currency financial statement 518,850.52 -229,729.53 -229,729.53 289,120.99 translation difference Total other comprehensive 518,850.52 -229,729.53 -229,729.53 289,120.99 income 37. Surplus reserve

Closing balance of Items Opening balance Increase Decrease Closing balance last year

Statutory surplus reserve 71,934,339.69 71,934,339.69 71,934,339.69

Total 71,934,339.69 71,934,339.69 71,934,339.69 38. Undistributed profits

Items Current year Prior year

Undistributed profits in the Prior year before adjustment 2,123,783,947.53 1,498,909,518.25 Total adjusted opening undistributed profits (increase is indicated by “+” and decrease is indicated by “-”) 7,557,690.00 -32,545,303.57 Opening undistributed profits after adjustment 2,131,341,637.53 1,466,364,214.68 Plus: Net profits attributable to equity owners of the Company in the current year 16,837,786.00 820,648,327.54 Less: Appropriation of statutory surplus reserve 33,163,304.84

Appropriation of discretionary surplus reserve

Extraction of general risk reserve

Common stock dividends payable 165,092,877.67 130,065,289.85

Common stock dividends converted to equity

Closing undistributed profits 1,983,086,545.86 2,123,783,947.53

Note: Due to changes in accounting policies for available-for-sale equity instruments, the

134 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

undistributed profit at the beginning of the year was affected by RMB 7,557,690.00. 39. Operating revenue and operating expense

Amount for the current year Amount for the Prior year Items Revenue Costs Revenue Costs

Main businesses 3,632,378,722.62 2,336,389,562.53 3,531,657,406.40 1,953,640,386.92

Other businesses 8,681,943.90 7,775,737.16 5,906,910.06 4,008,836.83

Total 3,641,060,666.52 2,344,165,299.69 3,537,564,316.46 1,957,649,223.75 40. Tax and surcharge

Items Current year Prior year

Security fund for the disabled 4,348,987.74 1,010,412.27

Stamp tax 994,241.89 684,609.21

Property tax 378,674.27 502,694.92

Water conservancy fund 210,429.02 305,384.61

Urban maintenance and construction tax 129,783.33 70,534.69 Education surcharge (including local education surcharge) 111,673.44 118,811.96 Others 50,045.08 82,620.04

Total 6,223,834.77 2,775,067.70

Note: Please refer to Note V. Tax for details of various taxes and additional payment standards. 41. Selling expense

Items Current year Prior year

Labor costs 669,292,617.34 711,166,134.83

Advertising and promotion expenses 53,027,993.85 60,401,143.44

Advertising expenditure 49,828,002.56 47,585,879.74

Rent 36,623,853.72 30,001,701.74

Car rental fee 36,115,350.16 49,683,291.57

Office miscellaneous fees 21,890,918.90 27,130,788.54

Conference fee 9,436,500.69 16,392,392.28

Traveling expenses 7,616,045.91 12,995,636.90

Others 26,471,300.37 33,241,968.06

Total 910,302,583.50 988,598,937.10 42. Administrative expense

Items Current year Prior year

135 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Current year Prior year

Labor costs 171,552,672.77 150,104,632.81

Agent service charge 43,625,217.11 28,846,299.42

Rent 20,782,809.29 15,933,760.92

Traveling expenses 11,308,103.17 10,387,630.00

Amortization fee 7,516,074.11 6,356,254.11

Business entertainment fee 7,012,243.59 7,350,568.79

Office fees 9,517,716.63 9,564,305.13

Depreciation 8,287,533.44 7,020,683.02

Automobile fees 4,258,570.92 3,046,545.77

Conference fee 3,184,975.33 5,919,671.12

Organization expenses 5,083,768.44 4,813,001.99

Others 16,435,853.74 22,328,895.97

Total 308,565,538.54 271,672,249.05 43. Research and development expense

Items Current year Prior year

Labor costs 20,369,262.73 11,839,610.21

Depreciation and Amortization fee 2,288,802.12 1,960,240.89

Other 306,036.36 899,489.40

Total 22,964,101.21 14,699,340.50 44. Financial expense

Items Current year Prior year

Interest expense 197,564,525.14 103,986,271.67

Less: Interest income 12,710,587.25 7,456,581.81

Less: interest capitalization

Exchange gains or losses -5,316,542.26 140,221.63 Less: exchange gains and losses capitalization amount Other 8,047,314.97 8,825,612.85

Total 187,584,710.60 105,495,524.34 45. Other income Amount included in Items Current year Prior year non-recurring gains and losses for the year Personal income tax return 441,994.92 438,215.53 441,994.92

136 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Amount included in Items Current year Prior year non-recurring gains and losses for the year Zhongguancun Enterprise Information Promotion Association subsidy 353,151.41 353,151.41 Stable subsidy 339,165.33 160,936.63 339,165.33

SME Public Service Platform Construction 300,000.00 300,000.00 Subsidy Project

Social insurance subsidies 267,686.33 9,881.47 267,686.33

Deduction on VAT 194,888.51

Immediate refund upon assessment of VAT 134,055.70 1,094,935.79

Other subsidies 116,706.63 116,706.63

Total 2,147,648.83 1,703,969.42 1,818,704.62 46. Investment income

Items Current year Prior year

Financing lease interest 25,124,065.61 8,303,912.52 Investment income earned during the holding of available-for-sale financial assets 19,478,968.79 4,552,302.87 Financial product income 107,015.62 348,593.65 Step-by-step transactions reach control to adjust the gains from fair value 94,990,157.67 Long-term equity investment income calculated by equity method -3,672,776.99 600,113.77

Total 41,037,273.03 108,795,080.48 47. Gains from changes in fair value

Sources of gains from changes in fair value Current year Prior year

Other non-current financial assets

Fuqing Meinian Onehealth Health Management Co., Ltd. 8,820,000.00

Xining Meinian Onehealth Health Management Co., Ltd. 6,574,000.00

Zhumadian Meinian Onehealth Technology Co., Ltd 5,400,000.00

Meishan Meinian Onehealth Management Co., Ltd. 4,800,000.00

Zigong Meinian Onehealth Examination Hospital Co., Ltd. 4,704,000.00

Tangshan Meinian Onehealth Health Examination Management Co., Ltd. 4,332,390.00

Jiangmen Meinian Onehealth Health Management Co., Ltd. 4,000,000.00

Qingyang Meinian Onehealth Health Management Co., Ltd. 3,855,000.00

Suzhou Meinian Onehealth Health Management Co., Ltd. 3,800,000.00

Neijiang Meinian Onehealth Health Management Co., Ltd. 3,760,000.00

Huizhou Meinian Onehealth Health Management Co., Ltd. 3,680,000.00

137 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Sources of gains from changes in fair value Current year Prior year

AnyangMeinian Onehealth Management Co., Ltd. 3,400,000.00

Luzhou Meinian Onehealth Technology Co., Ltd 3,309,200.00

Liaocheng Meinian Onehealth Management Co., Ltd. 3,060,000.00

Fuxin Meinian Onehealth Health Management Co., Ltd. 2,250,000.00

Suizhou Meinian Onehealth Management Co., Ltd. 1,800,000.00

Zhuhai Meinian Onehealth Health Management Co., Ltd. 2,376,000.00

Jinhua Meikang Guobin Health Management Co., Ltd. 920,000.00

Shanghai Meikai Outpatient Co., Ltd. 510,560.00

Nanjing Meiyi Outpatient Co., Ltd. 1,204,000.00

Fujian Meinian Onehealth Management Co., Ltd. 3,750,000.00

Yinchuan Meinian Onehealth Hospital Co., Ltd. 1,050,000.00

Wuxi Meihua Outpatient Co., Ltd. 1,928,100.00

Huai'an Mingze Meinian Onehealth Management Co., Ltd. 3,353,000.00

Foshan Aoya Health Management Co., Ltd. 1,950,000.00

Jiujiang Meinian Onehealth Examination Center Co., Ltd. 1,520,000.00

Yichang Meinian Onehealth Management Co., Ltd. 80,900.00

Baoding Meinian Onehealth Outpatient Co., Ltd. 656,000.00

Shangrao Meikang Medical Health Examination Center Co., Ltd. 1,235,300.00

Panjin Meinian Onehealth & Health Management Co., Ltd. 2,730,000.00 Chengdu Xindu Meinian Onehealth and Health Examination Outpatient Co., Ltd. 2,730,000.00 Lincang Meinian Onehealth Examination Center Co., Ltd. 3,705,000.00

Shangqiu Meinian Onehealth Management Co., Ltd. 880,000.00

Guilin Meinian Health Onehealth Management Co., Ltd. 5,657,500.00

Maanshan Meinian Onehealth Consulting Co., Ltd. 992,000.00

Chifeng Meinian Onehealth & Health Management Co., Ltd. 6,750,000.00

Sanmenxia Meinian Onehealth Management Co., Ltd. 1,254,000.00

Changzhou Meinian Onehealth Outpatient Co., Ltd. 2,850,000.00

Anshan Meinian Onehealth Management Co., Ltd. 6,270,000.00

Hangzhou Xiaoshan Meinian Jincheng Comprehensive Outpatient Co., Ltd. 3,240,000.00

Panzhihua Meinian Onehealth Technology Co., Ltd. 915,000.00

Bijie Meinian onehealth Health Management Co., Ltd. 1,344,000.00

Hengyang Meinian Onehealth Management Co., Ltd. 3,200,000.00

138 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Sources of gains from changes in fair value Current year Prior year

Shantou Meinian Health Management Co., Ltd. 2,094,000.00

Yangjiang Meinian Onehealth Health Management Co., Ltd. 3,200,000.00

Cangzhou Meinian Onehealth Outpatient Co., Ltd. 2,400,000.00

Ziyang Meinian Onehealth Management Co., Ltd. 2,080,000.00

Qujing Meinian Health Service Co., Ltd. 2,720,000.00

Nanchong Meinian Onehealth Health Management Co., Ltd. 3,420,000.00

Dezhou Meinian Onehealth Physical Examination Management Co., Ltd. 2,560,000.00

Zaozhuang Meinian Onehealth Physical Examination Service Co., Ltd. 1,065,000.00

Zunyi Meinian Onehealth Industry Hospital Co., Ltd. 450,000.00

Yiwu Meinian Onehealth Management Co., Ltd. 960,000.00

Huanggang Meinian Health Management Co., Ltd. 2,880,000.00

Xinyu Meiyin Onehealth Physical Examination Co., Ltd. 1,280,000.00

Xuchang Meinian Onehealth Health Management Co., Ltd. 6,024,640.00

Jinzhou Meinian Onehealth Management Co., Ltd. 3,000,000.00

Juxian Meinian Onehealth Management Co., Ltd. 900,000.00

Pingliang Meinian Onehealth Health Management Co., Ltd. 7,395,000.00

Hangzhou Meixin Outpatient Co., Ltd. 2,400,000.00

Taizhou Meinian Onehealth Management Co., Ltd. 340,000.00

Luohe Meinian Onehealth Management Co., Ltd. 660,000.00

Zhoukou Meinian Onehealth Health Management Co., Ltd. 540,000.00

Chuxiong Meinian Onehealth Examination Hospital Co., Ltd. 700,000.00

Liuzhou Meinian Onehealth Health Management Co., Ltd. 2,000,000.00

Bazhou Meinian Health Examination Center Co. Ltd 115,000.00

Jiaozuo Meinian Onehealth Health Service Co., Ltd. 400,000.00

Lvliang Onehealth Health Technology Management Co., Ltd. 1,000,000.00

Jincheng Meinian Onehealth Technology Health Management Co., Ltd. 2,650,000.00

Chongqing Banan Ciming Comprehensive Outpatient Co., Ltd. 6,000.00

Total 183,835,590.00 48. Credit impairment loss

Items Current year Prior year

Bad debt loss of accounts receivable -4,718,126.65 ——

Bad debt loss of other receivables -3,809,797.15 ——

139 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Current year Prior year

Total -8,527,923.80 49. Impairment loss of assets

Items Current year Prior year

Loss on bad debt -5,006,130.08

Total -5,006,130.08 50. Gains on disposal of assets Amount included into non-recurring profit or Items Current year Prior year loss this year Disposal of fixed assets -497,308.27 -391,120.28 -497,308.27

Total -497,308.27 -391,120.28 -497,308.27 51. Non-operating revenue Amount included into Items Current year Prior year non-recurring profit or loss this year Gains or losses from damage and scrapping of non-current assets: 33,310.39 33,310.39 Including: fixed assets 33,310.39 33,310.39 Government subsidies unrelated to the daily activities of the Company 4,236,619.81 3,564,777.32 4,236,619.81 Others 110,841.82 151,789.55 110,841.82

Total 4,380,772.02 3,716,566.87 4,380,772.02 Including: Government grants recorded into the profit or loss for the period:

Current year Prior year Related to Accounting for Write off Accounting for Write off Subsidy items Account for Account for assets/earnin non-operating costs and non-operating costs and other income other income gs income expenses income expenses Pudong New Area Related to Financial Support 3,161,000.00 1,265,000.00 revenue Fund Xuhui District Related to Financial Subsidy 740,000.00 revenue Treasury tax Related to incentive 157,542.81 revenue Related to New entry bonus 100,000.00 revenue Special fund for Related to enterprise 50,000.00 revenue development Personal income tax Related to return 441,994.92 438,215.53 revenue Zhongguancun Enterprise Related to Information 353,151.41 revenue Promotion Association subsidy

140 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Current year Prior year Related to Accounting for Write off Accounting for Write off Subsidy items Account for Account for assets/earnin non-operating costs and non-operating costs and other income other income gs income expenses income expenses Related to Stable subsidy 339,165.33 160,936.63 revenue SME Public Service Platform Related to Construction 300,000.00 revenue Subsidy Project Social security Related to subsidy 267,686.33 9,881.47 revenue Related to Deduction on VAT 194,888.51 revenue Immediate refund Related to upon assessment of 134,055.70 1,094,935.79 revenue VAT Supporting funds for Related to enterprise 1,180,000.00 revenue development First phase Related to settlement subsidy 830,000.00 revenue Related to Statistical subsidy 52,000.00 revenue Financial Bureau Related to Support Fund 10,000.00 revenue Related to Other subsidies 28,077.00 116,706.63 227,777.32 revenue Total 4,236,619.81 2,147,648.83 3,564,777.32 1,703,969.42 52. Non-operating expense Amount included into Items Current year Prior year non-recurring profit or loss this year Loss from damage and retirement of non-current assets 1,155,760.71 535,012.02 1,155,760.71 Wherein: Loss from damage and retirement of fixed assets 1,155,760.71 535,012.02 1,155,760.71 Expenditure for penalty and overdue fine 158,081.17 189,867.29 158,081.17

External donation outlay 4,667,101.22 1,566,282.79 4,667,101.22

Compensation expense 792,993.50 600,815.05 792,993.50

Others 833,933.72 4,911.30 833,933.72

Total 7,607,870.32 2,896,888.45 7,607,870.32 53. Income tax expense (1) Income taxes

Items Current year Prior year

Income taxes expenses in the current period 66,993,669.76 95,167,821.18

Deferred taxes expenses -35,930,887.30 3,457,726.26

141 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Current year Prior year

Total 31,062,782.46 98,625,547.44 (2) Accounting profit and income tax adjustment process

Items Current year

Total profits 76,022,779.70

Income tax expenses calculated at applicable tax rates 19,005,694.93

Effect of applicable tax rates to subsidiaries 480,536.32

Adjustment of the effects on the income tax in previous periods 1,459,495.19

Effect of non-taxable income 143,197.23

Impact of non-deductible costs, expenses and losses 2,338,498.82

Utilization of previously unrecognized tax losses -13,049,770.10 The deductible temporary difference or deductible loss of deferred income tax assets was 20,685,130.07 not recognized during the year Changes in tax rate resulting in changes in deferred income tax assets/liabilities at the

beginning of the year

Income taxes 31,062,782.46 54. Other comprehensive incomes Please refer to Note VI.36 for details. 55. Items in statement of cash flows (1) Other cash received from operating activities

Items Current year Prior year

Current accounts 68,212,117.62 51,197,623.15

Interest income 12,710,587.25 7,456,581.81

Subsidy income 6,250,212.94 4,173,810.95

Others 110,841.82 504,291.63

Total 87,283,759.63 63,332,307.54 (2) Other cash paid for operating activities

Items Current year Prior year

Cash paid selling expenses 230,310,368.36 271,011,265.86

Cash paid administrative expenses 119,948,742.00 106,117,199.16

Current accounts 164,765,664.48 123,233,265.94

Bank service charge 7,143,883.13 6,810,428.02

Other 6,452,109.61 3,768,145.47

Total 528,620,767.58 510,940,304.45 (3) Other cash received from investing activities

142 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Current year Prior year

Rent received from financing lease and factoring 257,804,075.72 109,167,894.99

Obtaining the book capital of the subsidiary is greater than the payment consideration 321,946.59

Total 258,126,022.31 109,167,894.99 (4) Other cash paid for investing activities

Items Current year Prior year

Financing for financing leases and factoring payments 611,088,342.69 268,308,563.15

Special funds for handling the License for Operating Insurance Brokerage Business 68,523.23

Total 611,156,865.92 268,308,563.15 (5) Other cash received from investing activities

Items Current year Prior year

Borrowing related margin 25,030,000.00

Recovering the ticket deposit 15,430,000.00

Equipment sales instalments 390,000.00

Sale and leaseback 35,500,000.00

Total 40,850,000.00 35,500,000.00 (6) Other cashes paid for financing activities

Items Current year Prior year

Acquisition of minority equity payments 161,581,950.00 219,760,040.00

Payment for repurchase of shares 96,000,000.00 Amounts for prior year for business combination not involving enterprises under common control 70,491,940.00 36,034,456.00 Rent paid by sale and leaseback 8,603,301.00 4,814,334.00

Rent paid by finance lease 6,585,055.39 16,553,570.45

Management fee charged by the bank 5,496,627.32 2,648,236.08

Rent paid by installment payment 325,924.14

Issue fee 28,826,778.24

Total 349,084,797.85 308,637,414.77 56. Supplementary information for statement of cash flows (1) Supplementary information for statement of cash flows

Supplementary information Current year Prior year 1. Reconciliation from net profit to cash flows from operating activities: Net profits 44,959,997.24 203,969,904.54

Add: Provision for assets impairment 5,006,130.08

143 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Supplementary information Current year Prior year

Credit impairment loss 8,527,923.80 Depreciation of fixed assets, depreciation of oil and gas assets, depreciation of productive biological assets 187,686,350.22 141,214,725.33 Amortization of intangible assets 4,882,699.65 3,389,418.73

Long-term deferred expenses amortization 143,604,549.26 113,089,056.39 Disposal of fixed assets, intangible assets and other long-term assets (profit is indicated by “-”) 497,308.27 391,120.28 Loss of fixed assets (profit is indicated by “-”) 1,122,450.32 535,012.02

Loss on change of fair value (profit is indicated by “-”) -183,835,590.00

Financial expenses (profit is indicated by “-”) 186,767,768.12 106,085,778.03

Loss on investment (profit is indicated by “-”) -41,037,273.03 -108,795,080.48

Decrease in deferred tax asset (increase is indicated by “-”) -79,385,856.57 -17,610,082.54 Increase in deferred tax liabilities (decrease is indicated by “-”) 44,866,699.40 21,067,808.80 Decrease in inventory (increase is indicated by “-”) 18,125,711.28 -14,886,215.44 Decreases in operating receivables (increase is indicated by “-”) -731,208,792.13 -559,799,237.04 Increase in operating payables (decrease is indicated by “-”) -209,098,981.15 -194,604,209.30

Others

Net cash flow from operating activities -603,525,035.32 -300,945,870.60

2. Significant investing and financing activities that do not involve cash receipts and payments:

Conversion of debt into capital

Convertible bonds due within one year

Fixed assets under finance lease

3. Change of cash and cash equivalents:

Closing balance of cash 1,975,111,054.99 1,489,291,158.21

Less: Opening balance of cash 2,390,222,654.49 2,390,117,639.69

Plus: Closing balance of cash equivalents

Less: Opening balance of cash equivalents

Net increase of cash and cash equivalents -415,111,599.50 -900,826,481.48 (2) Net cash paid for obtaining subsidiaries in the current year

Items Amount Cash or cash equivalents paid in the current period for business combination in the current year 278,504,500.00 Including: Anhui Nuoyi Health Management Co., Ltd. 75,500,000.00

144 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Amount Fuqing Meinian Onehealth Health Management Co., Ltd. 53,300,000.00

Tangshan Meinian Onehealth Health Examination Management Co., Ltd. 45,500,000.00

Jiangmen Meinian Onehealth Health Management Co., Ltd. 15,120,000.00

Suizhou Meinian Onehealth Management Co., Ltd. 11,520,000.00

Zhumadian Meinian Onehealth Technology Co., Ltd 8,812,800.00

Qingyang Meinian Onehealth Health Management Co., Ltd. 8,262,000.00

Xining Meinian Onehealth Health Management Co., Ltd. 8,094,700.00

Meishan Meinian Onehealth Management Co., Ltd. 8,032,500.00

Zigong Meinian Onehealth Examination Hospital Co., Ltd. 7,140,000.00

Luzhou Meinian Onehealth Technology Co., Ltd 6,961,600.00

Neijiang Meinian Onehealth Health Management Co., Ltd. 6,872,300.00

Huizhou Meinian Onehealth Health Management Co., Ltd. 6,783,000.00

Suzhou Meinian Onehealth Health Management Co., Ltd. 5,712,000.00

Fuxin Meinian Onehealth Health Management Co., Ltd. 5,508,000.00

Liaocheng Meinian Onehealth Management Co., Ltd. 5,385,600.00 Less: the cash and cash equivalents held by the company on the date of purchase 42,726,569.18 Including: Anhui Nuoyi Health Management Co., Ltd. 7,665,546.43

Fuqing Meinian Onehealth Health Management Co., Ltd. 5,606,294.47

Tangshan Meinian Onehealth Health Examination Management Co., Ltd. 246,940.00

Jiangmen Meinian Onehealth Health Management Co., Ltd. 153,497.42

Suizhou Meinian Onehealth Management Co., Ltd. 7,091,930.61

Jincheng Meinian Onehealth Technology Health Management Co., Ltd. 2,520,472.57

Qingyang Meinian Onehealth Health Management Co., Ltd. 647,200.02

Xining Meinian Onehealth Health Management Co., Ltd. 993,220.30

Meishan Meinian Onehealth Management Co., Ltd. 4,754,310.40

Zigong Meinian Onehealth Examination Hospital Co., Ltd. 712,544.62

Luzhou Meinian Onehealth Technology Co., Ltd 1,533,470.56

Neijiang Meinian Onehealth Health Management Co., Ltd. 877,926.91

Huizhou Meinian Onehealth Health Management Co., Ltd. 243,649.23

Suzhou Meinian Onehealth Health Management Co., Ltd. 1,014,274.25

Fuxin Meinian Onehealth Health Management Co., Ltd. 3,830,121.83

Liaocheng Meinian Onehealth Management Co., Ltd. 4,835,169.56

145 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Amount Net cash paid for obtaining subsidiaries 235,777,930.82 (3) Cash and cash equivalents

Items Closing balance Opening balance

I. Cash 1,975,111,054.99 2,390,222,654.49

Including: Cash on hand 4,492,473.75 6,076,636.71

Deposit in bank available for payment at demand 1,970,529,107.29 2,384,053,558.55

Other monetary funds available for payment at demand 89,473.95 92,459.23

II. Cash Equivalents

Including: Bond investment due within three months

III. Closing balance of cash and cash equivalents 1,975,111,054.99 2,390,222,654.49 Note: Cash and cash equivalents do not include those of the parent company and subsidiaries with restricted use. 57. Assets with restricted ownership or use right

Items Closing book value Reasons of limitations

Cash and cash equivalents 63,329,650.94 Note 1,2,3

Long-term receivables 1,145,883,235.00 Note 4

Fixed assets 114,406,882.20 Note 5,6,7,8,9,10,11,12

Total 1,323,619,768.14

Note 1: The other monetary funds of Beijing Meinian Insurance Broker Co., Ltd., a subsidiary of the Company, was RMB 50,329,050.94, which was deposited into the Trustee Fund of China Tianshengyuan Sub-branch of China Minsheng Banking Co., Ltd. for the operation of the Insurance Broker Business License. Note 2: Mei Nian Da Health deposited RMB 13.00 million as a deposit at China Merchants Bank Shanghai Branch, replacing the 62.00% equity of Xiamen Mei Nian Da Health Management Co., Ltd. in the bank's equity pledge loan in 2017. Note 3: The bank deposit of Tianjin Meiyin Investment Management Co., Ltd., a subsidiary of the Company, was RMB 600.00 due to the freezing of ETC business. Note 4: Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, pledges the financial lease principal with a book value of RMB 1,145,883,235.00 from its accounts receivable shareholder to Standard Chartered Bank (China) Co., Ltd. Shanghai Branch, BNP Paribas (China) Co., Ltd., Shanghai Pudong Development Bank Co., Ltd. Qingpu Branch, HSBC Bank (China) Co., Ltd. Shanghai Branch, Hang Seng Bank (China) Co., Ltd. Shanghai Branch, China Everbright Bank Shanghai Songjiang Sub-branch and DBS Bank (China) Limited

146 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

The Company conducts factoring loans. Note 5: Ciming Health Physical Examination Management Group Co., Ltd., a subsidiary of the Company, is located in No. 3, 1st to 2nd Floor, Building 28, Panjiayuan, Chaoyang District, under the name of the Company. (Warrant number: Beijing (2016) chaoyang district real estate quan no. 0068139). No. 4, 1st to 2nd Floor, Building 28, Panjiayuan, Chaoyang District (Warrant number: Beijing (2016) Chaoyang District Immovable Property Rights No. 0068208), No. 1 to 2, No. 7, Beitucheng West Road, Chaoyang District, Unit 201 (Property Certificate) : Beijing (2016) Chaoyang District Immovable Property Rights No. 0076295) and No. 2, 2nd to 3rd Floor, No. 7 Beitucheng West Road, Chaoyang District 201 (Warrant number: Beijing (2016) Chaoyang District Immovable Property Rights No. 0076294). The property of RMB 50,027,070.69 was used as a mortgage to make loans to Guangfa Bank Co., Ltd. Beijing Weigongcun Sub-branch. Note 6: Meiyin Health Technology (Beijing) Co., Ltd., a subsidiary of the Company, signed a sale and leaseback agreement with Zhongguancun Technology Leasing Co., Ltd., and used the fixed assets of Maine Health Technology (Beijing) Co., Ltd. as the lease item for sale and leaseback. The book value at the end of the period was RMB 40,220,065.70. Note 7: Hainan Meinian Onehealth Hospital Co., Ltd., a subsidiary of the Company, is located in the A201 shop on the 2nd floor of Binjiang Holiday City, No. 362, Binjiang Road, Qiongshan District, Haikou City. (Warrant No.: Haikou City Fangquan Certificate Haifangzi No. HK454292). The property with a book value of RMB 14,603,509.37 at the end of the period was used as collateral to make loans to the China Postal Savings Bank Co., Ltd. Haikou Branch. Note 8: Hainan Meinian Onehealth Hospital Co., Ltd., a subsidiary of the Company, signed a sale and leaseback agreement with Ping An International Financial Leasing Co., Ltd., and used the fixed assets of Hainan Meinian Health Hospital Co., Ltd. as the lease item for sale and leaseback. The book value is RMB 2,548,578.99. Note 9: Haikou Ciming Health Physical Examination Clinic (General Partnership), a subsidiary of the Company, is located in A301, 3rd Floor, Binjiang Holiday City, No. 362 Binjiang Road, Qiongshan District, Haikou City, under the name of Hainan Mei Nian Health Hospital Co., Ltd. (Warrant No.: Haikou City Real Estate Certificate Haifangzi No. HK454142). The property with a book value of RMB 2,427,890.83 at the end of the period was used as a mortgage to make loans to the China Postal Savings Bank Co., Ltd. Haikou Branch. Note 10: Lu'an Ainuo Health Physical Examination Clinic Co., Ltd., a subsidiary of the Company, signed an after-sales leaseback agreement with Anhui Zhengqi Financial Leasing Co., Ltd., and used the fixed assets of Lu'an Aino Health Physical Examination Clinic Co., Ltd. as a lease item for sale and leaseback. The book value of the leased goods at the end of the

147 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 period was RMB 1,816,569.72. Note 11: Haikou Ciming Health Physical Examination Clinic (general partnership), a subsidiary of the Company, signed a sale and leaseback agreement with Ping An International Financial Leasing Co., Ltd., and sold the fixed assets of Haikou Ciming Health Physical Examination Clinic (general partnership) as lease items. Withdrawal, the book value of the leased goods at the end of the period is RMB 1,701,302.35. Note 12: Guangdong Youyi Health Management Co., Ltd., a subsidiary of the Company, signed a sale and leaseback agreement with Yurong Leasing Co., Ltd., and used the fixed assets of Guangdong Youyi Health Management Co., Ltd. as the lease item for sale and leaseback. The book value of the leased goods at the end of the period was RMB 1,061,894.55. 58. Foreign currency monetary item

Closing Balance of Closing translated RMB Items Rate of translation Foreign Currency Balance

Cash and cash equivalents

Including: USD 32,409,005.69 6.8747 222,802,182.72

SGD 139,300.00 5.0805 707,714.00

Other receivables

Including: USD 1,620.00 6.8747 11,137.02

Other payables

Including: USD 3,667.72 6.8747 25,214.47

Interest payable

Including: USD 3,788,888.47 6.8747 26,047,471.56

Bonds payable

Including: USD 194,628,450.28 6.8747 1,338,012,207.14 59. Government grants The amount recorded as Items Amount Presentation project current profit or loss Pudong New Area Financial Non-operating income Support Fund 3,161,000.00 3,161,000.00 Xuhui District Financial Subsidy 740,000.00 Non-operating income 740,000.00

Personal income tax return 441,994.92 Other income 441,994.92 Zhongguancun Enterprise Information Promotion Association 353,151.41 Other income 353,151.41 subsidy Stable subsidy 339,165.33 Other income 339,165.33 SME Public Service Platform Other income Construction Subsidy Project 300,000.00 300,000.00

148 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

The amount recorded as Items Amount Presentation project current profit or loss Social security subsidy 267,686.33 Other income 267,686.33

Deduction on VAT 194,888.51 Other income 194,888.51

Treasury tax incentive 157,542.81 Non-operating income 157,542.81 Immediate refund upon Other income assessment of VAT 134,055.70 134,055.70 New entry bonus 100,000.00 Non-operating income 100,000.00 Special fund for enterprise Non-operating income development 50,000.00 50,000.00 Other income \ Other subsidies 144,783.63 Non-operating income 144,783.63

VII. Change in Consolidation Scope 1. Business combination not involving enterprise under the common control (1) Business combination not involving enterprise under common control in the current year When the equity is Cost for acquiring Shareholding ratio Equity acquisition Name of acquiree acquired equity (%) method Anhui Nuoyi Health Management Co., Ltd. June 1, 2019 127,500,000.00 51.00 Purchase (Cont.) Income of acquiree Net profits of acquiree Recognition basis from the purchase from the purchase Name of acquiree Purchase date of purchase date date to the end of date to the end of the the year year Anhui Nuoyi Health Management Co., Ltd. June 1, 2019 Taking control 15,802,626.83 3,460,984.59 Condition about realizing business combination step by step and acquiring control over the reporting period Equity When the equity is Cost for Shareholding Name of merged party acquisition acquired acquiring equity ratio (%) method Fuqing Meinian Onehealth Health Management Co., Ltd. March 31, 2019 65,000,000.00 82.00 Purchase

Fuxin Meinian Onehealth Health Management Co., Ltd. May 1, 2019 15,300,000.00 36.00 Purchase

Suizhou Meinian Onehealth Management Co., Ltd. May 1, 2019 16,320,000.00 36.00 Purchase

Liaocheng Meinian Onehealth Management Co., Ltd. May 1, 2019 16,320,000.00 33.00 Purchase

Suzhou Meinian Onehealth Health Management Co., Ltd. May 1, 2019 17,850,000.00 32.00 Purchase

Huizhou Meinian Onehealth Health Management Co., Ltd. May 1, 2019 19,380,000.00 35.00 Purchase

Neijiang Meinian Onehealth Health Management Co., Ltd. May 1, 2019 19,635,000.00 35.00 Purchase

Luzhou Meinian Onehealth Technology Co., Ltd May 1, 2019 19,890,000.00 35.00 Purchase

149 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Equity When the equity is Cost for Shareholding Name of merged party acquisition acquired acquiring equity ratio (%) method Zigong Meinian Onehealth Examination Hospital Co., Ltd. May 1, 2019 20,400,000.00 35.00 Purchase

AnyangMeinian Onehealth Management Co., Ltd. May 1, 2019 22,440,000.00 41.00 Purchase Qingyang Meinian Onehealth Health Management Co., Ltd. May 1, 2019 22,950,000.00 36.00 Purchase Meishan Meinian Onehealth Management Co., Ltd. May 1, 2019 22,950,000.00 35.00 Purchase

Zhumadian Meinian Onehealth Technology Co., Ltd May 1, 2019 24,480,000.00 36.00 Purchase

Xining Meinian Onehealth Health Management Co., Ltd. May 1, 2019 25,296,000.00 32.00 Purchase Jiangmen Meinian Onehealth Health Management Co., Ltd. May 1, 2019 28,000,000.00 54.00 Purchase Tangshan Meinian Onehealth Health Examination Management Co., Ltd. May 1, 2019 52,081,250.00 70.00 Purchase Note 1: Meinian Onehealth Industry (Group) Co., Ltd., the subsidiary of the Company, acquired 51.00% shareholding of Anhui Nuoyi Health Management Co., Ltd on June 1, 2019. The acquisition cost was RMB 127.50 million and after the acquisition, the Company gained the right of control. Note 2: Shanghai Meihnian Outpatient Department Co., Ltd., the subsidiary of the Company, acquired 18.00% shareholding of Fuqing Meinian Onehealth management Co., Ltd. with cash on October 31, 2017. The acquisition cost was RMB 2.88 million. Shanghai Meihnian Outpatient Department Co., Ltd., the subsidiary of the Company, acquired 82.00% shareholding of Fuqing Meinian Onehealth management Co., Ltd. with cash on March 31, 2019. The acquisition cost was RMB 53.30 million. After the acquisition, the Company gained the right to control. Note 3: Shenyang Meinian Onehealth Technology Health Management Co., Ltd., the subsidiary of the Company, acquired 15% shareholding of Fuxin Meinian Onehealth Healthy Management Co., Ltd. with cash piad of RMB 1.8 million on July 27, 2016 and RMB 0.45 million on June 21, 2017. The acquisition cost was RMB 2.25 million. On May 1, 2018, Shenyang Meinian Onehealth Technology Health Management Co., Ltd., the subsidiary of the Company, acquired 36.00% shareholding of Fuxin Meinian Onehealth Healthy Management Co., Ltd. through cash payment. The acquisition cost was RMB 10.80 million. After the acquisition, the Company gained the right to control. Note 4: Wuhan Meinian Onehealth Physical Examination Management Co., Ltd., the subsidiary of the Company, acquired 15.00% shareholding of Suizhou Meinian Onehealth Physical Examination Management Co., Ltd. with cash payment, RMB 3 million on January 5, 2016; On May 1, 2019, Wuhan Meinian Onehealth Physical Examination Management Co., Ltd., the subsidiary of the Company, acquired 36.00% shareholding of Suizhou Meinian Onehealth

150 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Physical Examination Management Co., Ltd. through cash payment. The acquisition cost was RMB 11.52 million. After the acquisition, the Company gained the right to control. Note 5:Tai'an Meinian Onehealth Physical Examination Management Co., Ltd., the subsidiary of the Company, acquired 18.00% shareholding of Liaocheng Meinian Onehealth Management Co., Ltd., with cash on Juanuary 30, 2018. The acquisition cost was RMB 2.7 million in total. On May 1, 2019, Tai'an Meinian Onehealth Physical Examination Management Co., Ltd., the subsidiary of the Company acquired 33.00% shareholding of the Liaocheng Meinian Onehealth Management Co., Ltd., through cash payment. The acquisition cost was RMB 10.56 million. After the acquisition, the Company gained the right to control. Note 6: Anhui Meinian Onehealth Management Consulting Co., Ltd., the subsidiary of the Company, acquired 19.00% shareholding of Suzhou Meinian Onehealth & Healthy Management Co., Ltd. with cash payment, RMB 0.7 million on May 22, 2018, RMB 1.69 million on May 24, 2018 and RMB 0.46 million on Spetember 14, 2018. The acquisition cost was RMB 2.85 million. On May 1, 2019, Anhui Meinian Onehealth Management Consulting Co., Ltd., the subsidiary of the Company, acquired 32.00% shareholding of Suzhou Meinian Onehealth Healthy Management Co., Ltd. with cash payment. The acquisition cost was RMB 11.20 million. After the acquisition, the Company gained the right to control. Note 7: Guangzhou Meinian Onehealth Medical Technology Co., Ltd., the subsidiary of the Company acquired 16.00% shareholding of Huizhou Meinian Onehealth & Health Management Co., Ltd. with cash, RMB 0.3 million on January 16, 2017 and RMB 2.1 million on January 18, 2017. The acquisition cost was RMB 2.4 million. On May 1, 2019 Guangzhou Meinian Onehealth Medical Technology Co., Ltd., the subsidiary of the Company acquired 35.00% shareholding of Huizhou Meinian Onehealth & Health Management Co., Ltd. with cash consideration of RMB 13.3 miliion. After the acquisition, the Company gained the right to control. Note 8: On July 25, 2017, Chengdu Meinian Onehealth Health Management Co., Ltd., the subsidiary of the Company acquired 16.00% shareholding of Neijiang Meinian Onehealth & Health Management Co., Ltd. with cash consideration of RMB 2.4 miliion. On May 1, 2019, Chengdu Meinian Onehealth Health Management Co., Ltd., the subsidiary of the Company acquired 35.00% shareholding of Neijiang Meinian Onehealth & Health Management Co., Ltd. with cash consideration of RMB 13.475 miliion, After the acquisition, the Company gained the right to control. Note 9: Chengdu Meinian Onehealth Health Management Co., Ltd., the subsidiary of the Company acquired 16.00% shareholding of Luzhou Meinian Onehealth Technology Co., Ltd.

151 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 with cash, RMB 0.5 million on April 5, 2017, RMB 1.1 million on April 11, 2017, RMB 0.8 million on July 25, 2017 and RMB 0.5308 million on November 15, 2017. The acquisition cost was RMB 2.93 million. On May 1, 2019, Chengdu Meinian Onehealth Health Management Co., Ltd., the subsidiary of the Company acquired 35.00% shareholding of Luzhou Meinian Onehealth Technology Co., Ltd. with cash consideration of RMB 13.65 million . After the acquisition, the Company gained the right to control. Note 10: Chengdu Meinian Medical Examination Hospital Co., Ltd, the subsidiary of the Company acquired 16.00% shareholding of Zigong Meinian Onehealth Medical Examination Hospital Co., Ltd, with cash on Spetember 15, 2016. The acquisition cost was RMB 1.6 million. On May 1, 2019, Chengdu Meinian Medical Examination Hospital Co., Ltd, the subsidiary of the Company acquired 35.00% shareholding of Zigong Meinian Onehealth Medical Examination Hospital Co., Ltd, with cash consideration of RMB 14 million. After the acquisition, the Company gained the right to control. Note 11: Zhengzhou Meinian Onehealth Technology Co., Ltd, the subsidiary of the Company acquired 10.00% shareholding of Anyang Meinian Onehealth Management Co., Ltd with cash on January 5, 2016. The acquisition cost was RMB 1 million. On May 1, 2019, Zhengzhou Meinian Onehealth Technology Co., Ltd, the subsidiary of the Company acquired 41.00% shareholding of Anyang Meinian Onehealth Management Co., Ltd with cash. The acquisition cost was RMB 18.04 million. After the acquisition, the Company gained the right to control. Note 12: Lanzhou Meinian Onehealth & Healthy Management Co., Ltd, the subsidiary of the Company acquired 15.00% shareholding of Qingyang Meinian Onehealth & Healthy Management Co., Ltd with cash payments, RMB 0.65 million on May 9, 2017, RMB 0.3 million on June 20, 2017, RMB 0.3 million on June 29, 2017, and RMB 0.7 million on July 10, 2017. The acquisition cost was RMB 1.95 million. On May 1, 2019, Lanzhou Meinian Onehealth & Healthy Management Co., Ltd, the subsidiary of the Company acquired 36.00% shareholding of Qingyang Meinian Onehealth & Healthy Management Co., Ltd with cash. The acquisition cost was RMB 16.20 million. After the acquisition, the Company gained the right to control. Note 13: Chengdu Meinian Onehealth & Healthy Management Co., Ltd, the subsidiary of the Company acquired 16.00% shareholding of Meishan Meinian Onehealth Management Co., Ltd with cash payments on August 18, 2017. The acquisition cost was RMB 2.4 million. On May 1, 2019, Chengdu Meinian Onehealth & Healthy Management Co., Ltd, the subsidiary of the Company acquired 35.00% shareholding of Meishan Meinian Onehealth Management Co., Ltd with cash. The acquisition cost was RMB 15.75 million. After the acquisition, the Company

152 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 gained the right to control. Note 14: Zhengzhou Meinian Onehealth Technology Co., Ltd, the subsidiary of the Company acquired 15.00% shareholding of Zhumadian Meinian Onehealth Technology Co., Ltd with cash payments on June 8, 2017. The acquisition cost was RMB 1.8 million. On May 1, 2019, Zhengzhou Meinian Onehealth Technology Co., Ltd, the subsidiary of the Company acquired 36.00% shareholding of Zhumadian Meinian Onehealth Technology Co., Ltd with cash. The acquisition cost was RMB 17.28 million. After the acquisition, the Company gained the right to control. Note 15: Lanzhou Meinian Onehealth & Healthy Management Co., Ltd, the subsidiary of the Company acquired 19.00% shareholding of Xining Meinian Onehealth & Healthy Management Co., Ltd, with cash payments on Spetember 21, 2016. The acquisition cost was RMB 2.85 million. On May 1, 2019, Lanzhou Meinian Onehealth & Healthy Management Co., Ltd, the subsidiary of the Company acquired 32.00% shareholding of Xining Meinian Onehealth & Healthy Management Co., Ltd, with cash. The acquisition cost was RMB 15.872 million. After the acquisition, the Company gained the right to control. Note 16: Guangzhou Meinian Onehealth Medical Technology Co., Ltd, the subsidiary of the Company acquired 16.00% shareholding of Jiangmen Meinian Onehealth & Healthy Management Co., Ltd, with cash payments on Novermber 28, 2016. The acquisition cost was RMB 2.4 million. On May 1, 2019, Guangzhou Meinian Onehealth Medical Technology Co., Ltd, the subsidiary of the Company acquired 54.00% shareholding of Jiangmen Meinian Onehealth & Healthy Management Co., Ltd, with cash. The acquisition cost was RMB 21.60 million. After the acquisition, the Company gained the right to control. Note 17: Shenyang Meinian Health Technology Management Co., Ltd, the subsidiary of the Company acquired 10.125% shareholding of Tangshan Meinian Onehealth & Healthy Medical Examination Management Co., Ltd, with cash, RMB 1.09 million on May 8, 2012 and RMB 0.53 million on Spetember 17, 2012. The acquisition cost was RMB 1.62 million. On May 1, 2019, Shenyang Meinian Health Technology Management Co., Ltd, the subsidiary of the Company acquired 70.00% shareholding of Tangshan Meinian Onehealth & Healthy Medical Examination Management Co., Ltd, with cash. The acquisition cost was RMB 45.5 million. After the acquisition, the Company gained the right to control. (2) Combination cost and goodwill Fuqing Meinian Fuxin Meinian Suizhou Meinian Anhui Nuoyi Health Onehealth Onehealth Health Onehealth Management Co., Item Management Co., Management Co., Management Co., Ltd. Ltd. Ltd. Ltd. Combination cost

153 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Fuqing Meinian Fuxin Meinian Suizhou Meinian Anhui Nuoyi Health Onehealth Onehealth Health Onehealth Management Co., Item Management Co., Management Co., Management Co., Ltd. Ltd. Ltd. Ltd. -Cash 127,500,000.00 53,300,000.00 10,800,000.00 11,520,000.00 -Fair value on purchase date of equity held before 11,700,000.00 4,500,000.00 4,800,000.00 purchase date Total combination cost 127,500,000.00 65,000,000.00 15,300,000.00 16,320,000.00 Less: Fair value of identifiable net assets 19,078,941.06 19,727,333.46 7,309,655.73 7,474,497.18 obtained Goodwill 108,421,058.94 45,272,666.54 7,990,344.27 8,845,502.82 (Cont.) Suzhou Meinian Huizhou Meinian Neijiang Meinian Liaocheng Meinian Onehealth & Onehealth Onehealth Health Wellness Health Health Items Management Co., Management Co., Management Co., Management Co., Ltd. Ltd. Ltd. Ltd. Combination cost

-Cash 10,560,000.00 11,200,000.00 13,300,000.00 13,475,000.00 -Fair value on purchase date of equity held before purchase 5,760,000.00 6,650,000.00 6,080,000.00 6,160,000.00 date Total combination cost 16,320,000.00 17,850,000.00 19,380,000.00 19,635,000.00 Less: Fair value of identifiable 6,176,334.59 7,236,442.31 2,977,984.89 6,403,447.22 net assets obtained Goodwill 10,143,665.41 10,613,557.69 16,402,015.11 13,231,552.78 (Cont.) Zigong Meinian Luzhou Meinian Onehealth Onehealth Physical Anyang Meinian Onehealth Items Technology Co., Ltd. Examination Hospital Management Co., Ltd. Co., Ltd. Combination cost

-Cash 13,650,000.00 14,000,000.00 18,040,000.00 -Fair value on purchase date of equity held before purchase 6,240,000.00 6,400,000.00 4,400,000.00 date Total combination cost 19,890,000.00 20,400,000.00 22,440,000.00 Less: Fair value of identifiable net assets obtained 6,524,419.16 2,264,272.02 8,231,690.09 Goodwill 13,365,580.84 18,135,727.98 14,208,309.91 (Cont.) Qingyang Meinian Zhumadian Meinian Meishan Meinian Onehealth Items Onehealth & Health Onehealth Technology Management Co., Ltd. Management Co., Ltd. Co., Ltd Combination cost

154 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Qingyang Meinian Zhumadian Meinian Meishan Meinian Onehealth Items Onehealth & Health Onehealth Technology Management Co., Ltd. Management Co., Ltd. Co., Ltd -Cash 16,200,000.00 15,750,000.00 17,280,000.00 -Fair value on purchase date of equity held before purchase 6,750,000.00 7,200,000.00 7,200,000.00 date Total combination cost 22,950,000.00 22,950,000.00 24,480,000.00 Less: Fair value of identifiable net assets obtained 6,833,149.33 10,147,864.60 7,967,906.20 Goodwill 16,116,850.67 12,802,135.40 16,512,093.80 (Cont.) Tangshan Meinian Xining Meinian Jiangmen Meinian Onehealth Onehealth & Health Onehealth & Health & Health Management Co., Items Examination Management Management Co., Ltd. Ltd. Co., Ltd. Combination cost

-Cash 15,872,000.00 21,600,000.00 45,500,000.00 -Fair value on purchase date of equity held before purchase 9,424,000.00 6,400,000.00 6,581,250.00 date Total combination cost 25,296,000.00 28,000,000.00 52,081,250.00 Less: Fair value of identifiable net assets obtained 8,368,517.57 3,314,547.03 15,857,725.64 Goodwill 16,927,482.43 24,685,452.97 36,223,524.36

Note: The fair value of the combined part of the companies stated above is determined in the valuation method, which confirmed by China Alliance Appraisal Co., Ltd. and Zhongruishilian Asset Assessment (Beijing) Co., Ltd. according to asset-based approach. (3) Identifiable assets and liabilities of acquiree at the purchase date Fuqing Meiyin Onehealth Anhui Nuoyi Health Management Co., Ltd. Management Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets:

Currency funds 7,665,546.43 7,665,546.43 11,606,294.47 11,606,294.47 Trading financial assets

Accounts receivable 39,002,086.26 39,002,086.26 636,537.45 636,537.45

Prepayments 3,122,055.77 3,122,055.77 899,924.04 899,924.04

Other receivables 3,837,810.80 3,837,810.80 808,328.00 808,328.00

Inventories 768,553.62 768,553.62 1,384,483.04 1,384,483.04 Available-for-sale financial assets Long-term equity investments

155 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Fuqing Meiyin Onehealth Anhui Nuoyi Health Management Co., Ltd. Management Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Long-term receivables

Fixed assets 36,765,263.33 36,765,263.33 11,565,155.73 11,565,155.73

Construction in progress 9,800.00 9,800.00

Intangible assets 98,297.43 98,297.43 298,416.75 298,416.75

Long-term deferred expenses 20,840,231.75 20,840,231.75 4,278,537.04 4,278,537.04

Other assets 628,537.94 628,537.94 Liabilities:

Loan 3,000,000.00 3,000,000.00

Accounts payable 11,141,268.87 11,141,268.87 1,722,911.45 1,722,911.45

Advances from customers 25,255,388.16 25,255,388.16 2,977,232.90 2,977,232.90

Employee benefits payable 11,519,851.79 11,519,851.79 1,640,894.99 1,640,894.99

Taxes payable 1,222,953.00 1,222,953.00 602,770.94 602,770.94

Other payables 16,124,845.70 16,124,845.70 394,713.78 394,713.78 Non-current liabilities due within one year 3,483,458.97 3,483,458.97 1,623,714.00 1,623,714.00 Long-term payables 3,580,728.49 3,580,728.49 2,788,105.00 2,788,105.00

Other liabilities

Net assets 37,409,688.35 37,409,688.35 19,727,333.46 19,727,333.46

Less: Non-controlling Interests 18,330,747.29

Net assets obtained 19,078,941.06 19,727,333.46 (Cont.) Fuxin Meinian Onehealth & Wellness Suizhou Meinian Onehealth Management Co., Ltd. Management Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets:

Currency funds 3,830,121.83 3,830,121.83 7,091,930.61 7,091,930.61 Trading financial assets

Accounts receivable 1,649,219.22 1,649,219.22 2,619,857.51 2,619,857.51

Prepayments 205,519.66 205,519.66 1,162,047.81 1,162,047.81

Other receivables 309,478.19 309,478.19 4,430,342.14 4,430,342.14

Inventories 210,137.46 210,137.46 444,245.60 444,245.60 Available-for-sale financial assets

156 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Fuxin Meinian Onehealth & Wellness Suizhou Meinian Onehealth Management Co., Ltd. Management Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Long-term equity investments

Long-term receivables

Fixed assets 11,073,784.54 11,073,784.54 10,044,731.50 10,044,731.50

Construction in progress 33,000.00 33,000.00

Intangible assets 561,827.91 561,827.91 329,033.30 329,033.30

Long-term deferred expenses 3,666,770.58 3,666,770.58 1,789,012.67 1,789,012.67

Other assets 57,800.00 57,800.00 Liabilities:

Loan

Accounts payable 1,163,055.46 1,163,055.46 843,485.88 843,485.88

Advances from customers 705,859.22 705,859.22 6,342,566.61 6,342,566.61

Employee benefits payable 1,422,891.63 1,422,891.63 1,193,775.72 1,193,775.72

Taxes payable 1,166.79 1,166.79 152,436.72 152,436.72

Other payables 409,882.32 409,882.32 300,769.69 300,769.69 Non-current liabilities due within one year 861,042.25 861,042.25 1,020,459.00 1,020,459.00 Long-term payables 2,668,103.42 2,668,103.42 2,805,765.00 2,805,765.00

Other liabilities 629,065.70 629,065.70

Net assets 14,332,658.30 14,332,658.30 14,655,876.82 14,655,876.82

Less: Non-controlling Interests 7,023,002.57 7,181,379.64

Net assets obtained 7,309,655.73 7,474,497.18

157 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

(Cont.) Liaocheng Meinian Onehealth Suzhou Meinian Onehealth Management Co., Ltd. Management Co., Ltd. Item Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets:

Currency funds 4,835,169.56 4,835,169.56 1,014,274.25 1,014,274.25 Trading financial assets

Accounts receivable 2,542,493.61 2,542,493.61 6,536,298.81 6,536,298.81

Prepayments 834,771.42 834,771.42 295,273.58 295,273.58

Other receivables 400,886.39 400,886.39 1,944,051.80 1,944,051.80

Inventories 535,441.41 535,441.41 240,360.32 240,360.32 Available-for-sale financial assets Long-term equity investments

Long-term receivables

Fixed assets 9,758,357.01 9,758,357.01 9,666,995.48 9,666,995.48

Construction in progress

Intangible assets 178,333.28 178,333.28 369,333.40 369,333.40

Long-term deferred expenses 4,379,700.78 4,379,700.78 5,582,068.43 5,582,068.43

Other assets 17,550.00 17,550.00 Liabilities:

Loan

Accounts payable 1,813,696.04 1,813,696.04 3,734,977.15 3,734,977.15

Advances from customers 4,656,370.20 4,656,370.20 1,635,661.39 1,635,661.39

Employee benefits payable 131,083.69 131,083.69 1,022,213.41 1,022,213.41

Taxes payable 11,947.61 11,947.61 1,844.46 1,844.46

Other payables 388,590.95 388,590.95 208,660.10 208,660.10 Non-current liabilities due within one year 1,687,246.00 1,687,246.00 1,432,964.00 1,432,964.00 Long-term payables 2,665,758.99 2,665,758.99 3,440,783.00 3,440,783.00

Other liabilities

Net assets 12,110,459.98 12,110,459.98 14,189,102.56 14,189,102.56

Less: Non-controlling Interests 5,934,125.39 6,952,660.25

Net assets obtained 6,176,334.59 7,236,442.31

158 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

(Cont.) Huizhou Meinian Onehealth Neijiang Meinian Onehealth Management Co., Ltd. Management Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets:

Currency funds 243,649.23 243,649.23 877,926.91 877,926.91 Trading financial assets

Accounts receivable 4,285,385.96 4,285,385.96 4,251,018.40 4,251,018.40

Prepayments 33,416.53 33,416.53 21,908.97 21,908.97

Other receivables 273,623.52 273,623.52 230,641.00 230,641.00

Inventories 461,665.68 461,665.68 461,705.03 461,705.03 Available-for-sale financial assets

Long-term equity investments

Long-term receivables

Fixed assets 10,032,847.39 10,032,847.39 12,605,475.28 12,605,475.28

Construction in progress

Intangible assets 217,000.17 217,000.17 163,916.70 163,916.70

Long-term deferred expenses 6,638,353.85 6,638,353.85 3,947,842.33 3,947,842.33

Other assets 105,000.00 105,000.00 22,034.60 22,034.60 Liabilities:

Loan

Accounts payable 7,666,484.16 7,666,484.16 3,053,116.96 3,053,116.96

Advances from customers 3,141,015.03 3,141,015.03 114,073.40 114,073.40

Employee benefits payable 1,498,351.95 1,498,351.95 1,799,400.99 1,799,400.99

Taxes payable 44,047.64 44,047.64 16,458.30 16,458.30

Other payables 1,112,690.49 1,112,690.49 361,223.71 361,223.71 Non-current liabilities due within one year 1,426,585.00 1,426,585.00 2,293,193.00 2,293,193.00 Long-term payables 1,562,582.00 1,562,582.00 2,389,224.00 2,389,224.00

Other liabilities

Net assets 5,839,186.06 5,839,186.06 12,555,778.86 12,555,778.86

Less: Non-controlling Interests 2,861,201.17 6,152,331.64

Net assets obtained 2,977,984.89 6,403,447.22

159 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

(Cont.) Luzhou Meinian Onehealth Technology Zigong Meinian Health Physical Co., Ltd. Examination Hospital Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets:

Currency funds 1,533,470.56 1,533,470.56 712,544.62 712,544.62 Trading financial assets

Accounts receivable 7,664,404.78 7,664,404.78 1,520,665.76 1,520,665.76

Prepayments 548,916.23 548,916.23 148,714.94 148,714.94

Other receivables 1,077,264.97 1,077,264.97 305,661.59 305,661.59

Inventories 1,003,387.36 1,003,387.36 247,295.29 247,295.29 Available-for-sale financial assets

Long-term equity investments

Long-term receivables

Fixed assets 13,691,013.81 13,691,013.81 9,058,676.03 9,058,676.03

Construction in progress

Intangible assets 371,830.60 371,830.60 156,926.48 156,926.48

Long-term deferred expenses 4,304,773.85 4,304,773.85 1,738,099.73 1,738,099.73

Other assets 366,584.69 366,584.69 Liabilities:

Loan

Accounts payable 6,258,247.23 6,258,247.23 2,262,353.97 2,262,353.97

Advances from customers 3,441,912.53 3,441,912.53 968,431.98 968,431.98

Employee benefits payable 2,499,622.80 2,499,622.80 1,378,976.57 1,378,976.57

Taxes payable 75,024.57 75,024.57 2,280.10 2,280.10

Other payables 658,750.98 658,750.98 2,864,215.76 2,864,215.76 Non-current liabilities due within one year 2,189,551.00 2,189,551.00 1,035,504.00 1,035,504.00 Long-term payables 2,645,559.00 2,645,559.00 937,073.00 937,073.00

Other liabilities

Net assets 12,792,978.74 12,792,978.74 4,439,749.06 4,439,749.06

Less: Non-controlling Interests 6,268,559.58 2,175,477.04

Net assets obtained 6,524,419.16 2,264,272.02

160 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

(Cont.) Anyang Meinian Onehealth Management Qingyang Meinian Onehealth & Health Co., Ltd. Management Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets:

Currency funds 9,522,346.59 9,522,346.59 647,200.02 647,200.02 Trading financial assets

Accounts receivable 6,245,579.05 6,245,579.05 3,608,394.30 3,608,394.30

Prepayments 119,098.63 119,098.63 237,398.40 237,398.40

Other receivables 22,819.77 22,819.77 5,124,261.96 5,124,261.96

Inventories 326,500.74 326,500.74 298,932.86 298,932.86 Available-for-sale financial assets

Long-term equity investments

Long-term receivables

Fixed assets 7,660,933.77 7,660,933.77 7,814,038.80 7,814,038.80

Construction in progress

Intangible assets 130,000.70 130,000.70 210,416.66 210,416.66

Long-term deferred expenses 766,323.15 766,323.15 1,976,666.10 1,976,666.10

Other assets 110,084.96 110,084.96 1,648,426.15 1,648,426.15 Liabilities:

Loan

Accounts payable 665,444.54 665,444.54 1,138,097.88 1,138,097.88

Advances from customers 3,155,826.59 3,155,826.59 5,558,975.34 5,558,975.34

Employee benefits payable 489,359.67 489,359.67 991,028.26 991,028.26

Taxes payable 1,420,674.09 1,420,674.09 103,849.76 103,849.76

Other payables 2,043,587.66 2,043,587.66 375,451.99 375,451.99 Non-current liabilities due within one year 595,726.00 595,726.00 Long-term payables 392,500.00 392,500.00

Other liabilities

Net assets 16,140,568.81 16,140,568.81 13,398,332.02 13,398,332.02

Less: Non-controlling Interests 7,908,878.72 6,565,182.69

Net assets obtained 8,231,690.09 6,833,149.33

161 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

(Cont.) Meishan Meinian Onehealth Zhumadian Meinian Onehealth Management Co., Ltd. Technology Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets:

Currency funds 4,754,310.40 4,754,310.40 2,520,472.57 2,520,472.57 Trading financial assets

Accounts receivable 2,372,235.29 2,372,235.29 7,281,149.21 7,281,149.21

Prepayments 349,716.83 349,716.83 975,878.30 975,878.30

Other receivables 5,849,653.69 5,849,653.69 177,148.95 177,148.95

Inventories 621,695.46 621,695.46 345,831.96 345,831.96 Available-for-sale financial assets

Long-term equity investments

Long-term receivables

Fixed assets 9,968,032.08 9,968,032.08 10,186,161.79 10,186,161.79

Construction in progress

Intangible assets 188,333.29 188,333.29 166,666.80 166,666.80

Long-term deferred expenses 3,155,663.10 3,155,663.10 4,139,772.30 4,139,772.30

Other assets 280,777.94 280,777.94 2,709.35 2,709.35 Liabilities:

Loan

Accounts payable 1,215,345.28 1,215,345.28 2,237,815.31 2,237,815.31

Advances from customers 1,126,654.78 1,126,654.78 3,264,257.10 3,264,257.10

Employee benefits payable 1,168,259.45 1,168,259.45 1,019,308.28 1,019,308.28

Taxes payable 31,745.36 31,745.36 130,453.74 130,453.74

Other payables 464,184.49 464,184.49 896,287.31 896,287.31 Non-current liabilities due within one year 1,601,218.00 1,601,218.00 1,768,941.00 1,768,941.00 Long-term payables 2,035,237.00 2,035,237.00 855,383.00 855,383.00

Other liabilities

Net assets 19,897,773.72 19,897,773.72 15,623,345.49 15,623,345.49

Less: Non-controlling Interests 9,749,909.12 7,655,439.29

Net assets obtained 10,147,864.60 7,967,906.20

162 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

(Cont.) Xining Meinian Onehealth Management JiangmenMeinian Onehealth Co., Ltd. Management Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets:

Currency funds 993,220.30 993,220.30 153,497.42 153,497.42 Trading financial assets

Accounts receivable 3,837,570.85 3,837,570.85 2,530,343.12 2,530,343.12

Prepayments 18,122.10 18,122.10 9,517.29 9,517.29

Other receivables 31,777.76 31,777.76 1,192,685.67 1,192,685.67

Inventories 474,202.52 474,202.52 263,464.42 263,464.42 Available-for-sale financial assets

Long-term equity investments

Long-term receivables

Fixed assets 9,891,125.76 9,891,125.76 11,684,456.15 11,684,456.15

Construction in progress 132,500.00 132,500.00

Intangible assets 324,249.95 324,249.95 179,833.64 179,833.64

Long-term deferred expenses 2,567,828.83 2,567,828.83 3,231,777.69 3,231,777.69

Other assets 4,556,092.29 4,556,092.29 88,376.60 88,376.60 Liabilities:

Loan 46,000.00 46,000.00

Accounts payable 1,718,933.47 1,718,933.47 5,170,007.29 5,170,007.29

Advances from customers 4,010,004.67 4,010,004.67 2,155,029.03 2,155,029.03

Employee benefits payable 410,065.54 410,065.54 1,536,071.27 1,536,071.27

Taxes payable 33,728.70 33,728.70 79,882.78 79,882.78

Other payables 112,600.00 112,600.00 2,241,068.82 2,241,068.82 Non-current liabilities due within one year 2,049,846.00 2,049,846.00 Long-term payables 1,453,412.01 1,453,412.01

Other liabilities 67.62 67.62

Net assets 16,408,857.98 16,408,857.98 4,735,067.18 4,735,067.18

Less: Non-controlling Interests 8,040,340.41 1,420,520.15

Net assets obtained 8,368,517.57 3,314,547.03 (Cont.)

Items Tangshan Meinian Onehealth Examination Management Co., LTD

163 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Fair value on purchase date Book value on purchase date

Assets:

Currency funds 246,940.00 246,940.00 Trading financial assets

Accounts receivable 9,625,881.60 9,625,881.60

Prepayments 286,434.66 286,434.66

Other receivables 1,146,377.32 1,146,377.32

Inventories 490,356.46 490,356.46 Available-for-sale financial assets

Long-term equity investments

Long-term receivables

Fixed assets 15,197,748.54 15,197,748.54

Construction in progress 198,000.00 198,000.00

Intangible assets 145,500.51 145,500.51

Long-term deferred expenses 7,190,925.60 7,190,925.60

Other assets 366,378.90 366,378.90 Liabilities:

Loan

Accounts payable 4,202,543.59 4,202,543.59

Advances from customers 4,606,685.44 4,606,685.44

Employee benefits payable 530,856.17 530,856.17

Taxes payable 118,100.63 118,100.63

Other payables 4,517,463.24 4,517,463.24

Non-current liabilities due within one year 829,879.99 829,879.99

Long-term payables 297,781.28 297,781.28

Other liabilities

Net assets 19,791,233.25 19,791,233.25

Less: Non-controlling Interests 3,933,507.61

Net assets obtained 15,857,725.64

Note: The Company adopts valuation technique to confirm the fair value of assets and liabilities of purchased party on purchase date. Appraisal method of main assets and key assumptions are presented as follows: Assumed that the appraisal is based on the open market trading; Based on the balance sheet of the appraised entity at the appraisal base date, the value of appraised object combined

164 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

with the valuation of each assets and liabilities in the financial statements by resetting each production elements. (4) Gains or losses arising from the fair value re-measurement of equity held prior purchase date Amount of OCI Book value on the Fair value on Gains or loss from related to equity purchase date of the purchase date of re-measurement of held originally original held equity originally held equity originally held Name of acquiree before purchase prior to the purchase share before before purchase date transferred to date purchase date date investment income Fuqing Meinian Onehealth & Health Management Co., Ltd. 2,880,000.00 11,700,000.00 8,820,000.00 Fuxin Meinian Onehealth & Health Management Co., Ltd. 2,250,000.00 4,500,000.00 2,250,000.00 Suizhou Meinian Onehealth Management Co., Ltd. 3,000,000.00 4,800,000.00 1,800,000.00 Liaocheng Meinian Onehealth Management Co., Ltd. 2,700,000.00 5,760,000.00 3,060,000.00 Suzhou Meinian Onehealth & Health Management Co., Ltd. 2,850,000.00 6,650,000.00 3,800,000.00 Huizhou Meinian Onehealth & Health Management Co., Ltd. 2,400,000.00 6,080,000.00 3,680,000.00 Neijiang Meinian Onehealth & Health Management Co., Ltd. 2,400,000.00 6,160,000.00 3,760,000.00 Luzhou Meinian Onehealth Technology Co., Ltd 2,930,800.00 6,240,000.00 3,309,200.00 Zigong Meinian Onehealth Examination Hospital Co., Ltd. 1,696,000.00 6,400,000.00 4,704,000.00 Anyang Meinian Onehealth Management Co., Ltd. 1,000,000.00 4,400,000.00 3,400,000.00 Qingyang Meinian Onehealth & Health Management Co., Ltd. 2,895,000.00 6,750,000.00 3,855,000.00 Meishan Meinian Onehealth Management Co., Ltd. 2,400,000.00 7,200,000.00 4,800,000.00 Zhumadian Meinian Onehealth Technology Co., Ltd 1,800,000.00 7,200,000.00 5,400,000.00 Xining Meinian Onehealth & Health Management Co., Ltd. 2,850,000.00 9,424,000.00 6,574,000.00 Jiangmen Meinian Onehealth & Health Management Co., Ltd. 2,400,000.00 6,400,000.00 4,000,000.00 Tangshan Meinian Onehealth & Health Examination Management Co., 2,248,860.00 6,581,250.00 4,332,390.00 Ltd. 2. Business combination involving enterprises under the common control (1) Business combination involving enterprise under common control in the current year 3. Change of Combination Scope due to Other Reasons This year, the Company established a wholly-owned subsidiary, Shaanxi Meinian Onehealth Management Co., Ltd., Jiangsu Meinian Onehealth

165 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Management Co., Ltd., Gansu Meinian Enterprise Management Consulting Co., Ltd., Hubei North American Health Management Co., Ltd. Limited. In the current period, the Company cancelled its wholly-owned subsidiary Xinxiang Ciming Health Management Co., Ltd. VIII. Rights and Interests in Other Entities 1. Equity in the Subsidiaries (1) Composition of enterprises group Principal place Registrati Shareholding Acquisition Name of Subsidiaries Business nature of business on place (%) method First-level Subsidiary: Meinian Onehealth Industry Investment Shanghai Shanghai 100 Acquisition (Group) Co., Ltd. management Shanghai Meizhao Health Nutrition and Shanghai Shanghai 100 Establishment Management Co., Ltd. health consulting Nutrition and Shanghai Meijian Aoya Health health consulting Shanghai Shanghai 100 Establishment Management Co., Ltd. and management consulting Insurance Beijing Meinian Insurance Beijing Beijing brokerage 100 Establishment Broker Co., Ltd. business Ciming Health Physical Physical Examination Management Beijing Beijing 100 Acquisition examination Group Co., Ltd. Zhoushan Meici Investment Investment Zhoushan Zhoushan 100 Establishment Management Co., Ltd. management Shanghai Elephant Medical Medical technical Shanghai Shanghai 51 Acquisition Technology Co., Ltd. services Mainline Health Technology Medical technical Beijing Beijing 50.56 Acquisition (Beijing) Co., Ltd. services Shanghai Meilu Medical Medical technical Imaging Diagnosis Center Co., Shanghai Shanghai 51 Establishment services Ltd. Second-level Subsidiary: Nanjing Meiyin Health Medical technical Nanjing Nanjing 50.56 Acquisition Technology Co., Ltd. services Beijing Meiyin Medical Medical technical Beijing Beijing 50.56 Acquisition Laboratory Co., Ltd. services Mein Meikang Gene Medical technical Wuhan Wuhan 50.56 Acquisition Technology (Wuhan) Co., Ltd. services Shanghai Meinian Onehealth Physical Examination Investment Shanghai Shanghai 100 Establishment Investment Management Co., management Ltd. Medical examination Shanghai Meidong Software management Shanghai Shanghai 100 Establishment Development Co., Ltd. software development and sales Financial leasing, Shanghai Meixin Financial Shanghai Shanghai factoring business 75 Establishment Leasing Co., Ltd. and consulting

166 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

business

Shanghai Meiai Investment Investment Shanghai Shanghai 100 Establishment Management Co., Ltd. management Shanghai Meinian Outpatient Physical Shanghai Shanghai 100 Establishment Co., Ltd. Examination Shanghai Meiyi Outpatient Co., Physical Shanghai Shanghai 100 Establishment Ltd. Examination Shanghai Meijian Outpatient Physical Shanghai Shanghai 100 Establishment Co., Ltd. Examination Shanghai Meidong Outpatient Physical Shanghai Shanghai 100 Establishment Co., Ltd. Examination Shanghai Meijin Outpatient Physical Shanghai Shanghai 100 Establishment Co., Ltd. Examination Shanghai Meiheng Outpatient Physical Shanghai Shanghai 100 Establishment Co., Ltd. Examination Shanghai Meiyan Outpatient Physical Shanghai Shanghai 100 Establishment Co., Ltd. Examination Shanghai Meiyang Outpatient Physical Shanghai Shanghai 100 Establishment Co., Ltd. Examination Nanjing Meinian Onehealth Physical Nanjing Nanjing 100 Establishment Management Co., Ltd. Examination Meinian Onehealth Industry Physical Nantong Nantong 51 Acquisition Group Nantong Co., Ltd. Examination Hangzhou Meinian Medical Physical Hangzhou Hangzhou 100 Establishment Outpatient Co., Ltd. Examination Changshu Meinian Onehealth Physical Changshu Changshu 100 Acquisition Examination Center Co., Ltd. Examination Jiangsu Huakang Investment Investment Wuxi Wuxi 100 Acquisition Development Co., Ltd. management Suzhou Chunshen Lake Physical Meinian Onehealth Outpatient Suzhou Suzhou 100 Establishment Examination Co., Ltd. Suzhou Industrial Park Meinian Physical Suzhou Suzhou 100 Establishment Outpatient Co., Ltd. Examination Wuxi Meinian Sanatorium Co., Physical Wuxi Wuxi 100 Establishment Ltd. Examination Hangzhou Meinian Binhe Physical Hangzhou Hangzhou 100 Establishment Medical Outpatient Co., Ltd. Examination Kunshan Meida Outpatient Co., Physical Kuming Kuming 100 Establishment Ltd. Examination Anhui Meinian Onehealth Physical Management Consulting Co., Hefei Hefei 100 Acquisition Examination Ltd. Wuhan Meinian Onehealth Physical Physical Examination Wuhan Wuhan 100 Establishment Examination Management Co., Ltd. Zhengzhou Meinian Onehealth Zhengzho Physical Zhengzhou 100 Acquisition Technology Co., Ltd. u Examination Changsha Meinian Onehealth Physical Changsha Changsha 100 Acquisition & Health Management Co., Ltd. Examination Health Jiangxi Meinian Onehealth consultation and Nanchang Nanchang 100 Establishment Management Co., Ltd. business management Jiyuan Meinian Onehealth Physical Jiyuan Jiyuan 60 Acquisition Technology Co., Ltd. Examination Tai'an Meinian Onehealth Physical Tai'an Tai'an 100 Acquisition Physical Examination Examination

167 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Management Co., Ltd.

Tianjin Meinian Investment Physical Tianjin Tianjin 100 Establishment Management Co., Ltd. Examination Beijing Meinian Health Investment Beijing Beijing 100 Establishment Technology Co., Ltd. management Guangdong Meinian National Guangzho Investment Guangzhou 85 Establishment Medical Investment Co., Ltd. u management Shenzhen Meinian Onehealth Physical & Wellness Management Co., Shenzhen Shenzhen 100 Acquisition Examination Ltd. Shenzhen Hongkangjie Physical Shenzhen Shenzhen 94 Acquisition Technology Co., Ltd. Examination Hainan Meinian Onehealth Physical Haikou Haikou 75 Acquisition Healthcare Hospital Co., Ltd. Examination Nanning Meinian Onehealth Physical Nanning Nanning 100 Establishment Physical Examination Co., Ltd. Examination Jinzhou Meinian Health Physical Jinzhou Jinzhou 67 Acquisition Management Co., Ltd. Examination Changchun Meinian Onehealth Changchu Physical Changchun 100 Acquisition Yu Hao Hospital Co., Ltd. n Examination Shenyang Meinian Health Health Technology Health Shenyang Shenyang management 100 Acquisition Management Co., Ltd. consultation Xi’an Meinian Onehealth Physical Physical Examination Xi'an Xi'an 100 Acquisition Examination Management Co., Ltd. Hami Meinian Onehealth Physical Healthcare Management Co., Hami Hami 51 Acquisition Examination Ltd. Yili Meinian Onehealth Health Physical Yili Yili 60 Acquisition Management Co., Ltd. Examination Chengdu Meinian Onehealth Physical Chengdu Chengdu 100 Establishment Health Management Co., Ltd. Examination Yunnan Meinian Onehealth Physical Kuming Kuming 75 Establishment Healthcare Co., Ltd. Examination Chongqing Meinian Onehealth Chongqin Physical Chongqing 51 Establishment Industry Co., Ltd. g Examination Guizhou Meinian Onehealth Physical Kangyuan Physical Guiyang Guiyang 100 Acquisition Examination Examination Center Co., Ltd. Hangzhou Meixi Medical Physical Hangzhou Hangzhou 70 Acquisition Outpatient Co., Ltd. Examination Nutrition and health Shanghai Meinian Health consultation, Management Consulting Co., Shanghai Shanghai 100 Establishment enterprise Ltd. management consultation Shanghai Meizhi Outpatient Physical Shanghai Shanghai 100 Establishment Co., Ltd. Examination Heze Meinian Onehealth Physical 51.00 Examination Management Co., Heze Heze Acquisition Examination Note(1) Ltd. Health Chuanyu Meinian (Chongqing) Chongqin Chongqing management 100 Establishment Health Management Co., Ltd. g consultation Bozhou Meinian Onehealth Physical Bozhou Bozhou 51 Acquisition Health Management Co., Ltd. Examination

168 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Health Sichuan Meinian Onehealth Chengdu Chengdu management 100 Establishment Management Co., Ltd. consultation Henan Meinian Enterprise Health Zhengzho Management Consulting Co., Zhengzhou management 100 Establishment u Ltd. consultation Health Hunan Meinian Onehealth Changsha Changsha management 100 Establishment Management Co., Ltd. consultation Health Shanxi Meinian Health Taiyuan Taiyuan management 100 Establishment Management Co., Ltd. consultation Health Shandong Meinian Business Jinan Jinan management 100 Establishment Management Co., Ltd. consultation Health Meinian Onehealth Industry Changchu Changchun management 100 Establishment Group Jilin Province Co., Ltd. n consultation Health Yunnan Meinian Health Kuming Kuming management 100 Establishment Management Co., Ltd. consultation Health Zhejiang Meinian Onehealth consultation and Hangzhou Hangzhou 100 Establishment Management Co., Ltd. business management Inner Mongolia Meinian Health Health and Health Management Co., Hohhot Hohhot management 100 Establishment Ltd. consultation Guangdong Meinian Health Management Consulting Co., Shenzhen Shenzhen management 100 Establishment Ltd. consultation Health Guangxi Meinian Health Nanning Nanning management 100 Establishment Management Co., Ltd. consultation Health Liaoning Meijian Health Shenyang Shenyang management 100 Establishment Management Co., Ltd. consultation Anhui Meinian Meikang Business Ma'ansha Enterprise Management Co., Ma'anshan management 100 Establishment n Ltd. consulting Business Fujian Meinian Enterprise Xiamen Xiamen management 100 Establishment Management Co., Ltd. consulting Health Shanxi Meinian Onehealth Xi'an Xi'an management 100 Establishment Health Management Co., Ltd. consultation Health Jiangsu Meinian Onehealth Nanjing Nanjing management 100 Establishment Management Co., Ltd. consultation Gansu Meinian Enterprise Health Management Consulting Co., Lanzhou Lanzhou management 100 Establishment Ltd. consultation Health Hubei Meinian Onehealth Wuhan Wuhan management 100 Establishment Management Co., Ltd. consultation Ciming Health Physical Examination Management Physical Beijing Beijing 100 Acquisition Group Beijing Ciming Lenovo Examination Bridge Outpatient Co., Ltd.

169 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Ciming Health Physical Examination Management Physical Group Beijing Ciming Shangdi Beijing Beijing 100 Acquisition Examination Outpatient Department Co., Ltd. Ciming Health Physical Examination Management Physical Group Beijing Ciming Ciyun Beijing Beijing 100 Acquisition Examination Temple Outpatient Branch Co., Ltd. Beijing Ciming Aoya Yuetan Physical Beijing Beijing 100 Acquisition Outpatient Co., Ltd. Examination Information Beijing Ciming Star Information Beijing Beijing technology 100 Acquisition Technology Co., Ltd. service Ciming Health Physical Physical Examination Management Shanghai Shanghai 100 Acquisition Examination Group Shanghai Co., Ltd. Shenzhen Ciming Health Physical Physical Examination Shenzhen Shenzhen 100 Acquisition Examination Management Co., Ltd. Ciming Health Physical Guangzho Physical Examination Management Guangzhou 100 Acquisition u Examination Group Guangzhou Co., Ltd. Ciming Health Examination Physical Management Group Wuhan Wuhan Wuhan 100 Acquisition Examination Co., Ltd. Ciming Health Physical Physical Examination Management Dalian Dalian 100 Acquisition Examination Group (Dalian) Co., Ltd. Ciming Health Physical Physical Examination Management Nanjing Nanjing 100 Acquisition Examination Group Nanjing Co., Ltd. Ciming Health Physical Physical Examination Management Tianjin Tianjin 99 Acquisition Examination Group Tianjin Co., Ltd. Shandong Ciming Health Physical Physical Examination Jinan Jinan 79 Acquisition Examination Management Co., Ltd. Chengdu Ciming Health Physical Chengdu Chengdu 100 Acquisition Management Co., Ltd. Examination Linyi Ciming Health Physical Physical Examination Management Co., Linyi Linyi 100 Acquisition Examination Ltd. Jilin Ciming Health Physical Changchu Physical Examination Management Co., Changchun 100 Acquisition n Examination Ltd. Ciming Health Physical Health Examination Management Hangzhou Hangzhou management 100 Acquisition Group Hangzhou Co., Ltd. consultation Jinhua Ciming Health Physical Jinhua Jinhua 100 Acquisition Management Co., Ltd. Examination Qingdao Ciming Health Physical Qingdao Qingdao 93 Acquisition Management Co., Ltd. Examination Ningbo Ciming Health Physical Physical Examination Investment Ningbo Ningbo 55.56 Acquisition Examination Management Co., Ltd. Hefei Ciming Health Physical Physical Hefei Hefei 100 Acquisition Examination Management Co., Examination

170 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Ltd.

Urumqi Huarui Tianmei Health Physical Urumqi Urumqi 90 Acquisition Management Co., Ltd. Examination Hospital Ciming Aoya Hospital management and Beijing Beijing 100 Acquisition Management Co., Ltd. business management Tongliao Ciming Health Physical Tongliao Tongliao 51 Acquisition Management Co., Ltd. Examination Changchun Baiwei Ci Kang Changchu Physical Changchun 80.01 Acquisition Hospital Co., Ltd. n Examination Health Anhui Nuoyi Health Hefei Hefei management 51 Acquisition Management Co., Ltd. consultation Tertiary subsidiary Investment Meijian Company Limited BVI BVI 100 Establishment management Jiaxing Meinian Onehealth Physical Jiaxing Jiaxing 51 Acquisition Management Co., Ltd. Examination Ningbo Haishu Meinnian Physical Comprehensive Outpatient Co., Ningbo Ningbo 100 Acquisition Examination Ltd. Xiamen Meinian Onehealth Physical Xiamen Xiamen 100 Acquisition management Co., Ltd Examination Ningbo Yinzhou Yihe Physical Comprehensive Outpatient Co., Ningbo Ningbo 51 Acquisition Examination Ltd. Nanjing Mei Shi Year Specialist Physical Outpatient Department Co., Nanjing Nanjing 51 Acquisition Examination Ltd. Wuxi Huakang Outpatient Co., Physical Wuxi Wuxi 100 Acquisition Ltd. Examination Suzhou Meida Outpatient Co., Physical Suzhou Suzhou 100 Acquisition Ltd. Examination Wuxi Binhu District Meinian Physical Wuxi Wuxi 100 Establishment Onehealth Outpatient Co., Ltd. Examination Anhui Tzu Chi Medical Physical Investment Management Co., Bengbu Bengbu 52.01 Acquisition Examination Ltd. Wuhan Gaoxin Outpatient Co., Physical Wuhan Wuhan 100 Acquisition Ltd. Examination Wuhan Meinian Health Physical Wuhan Wuhan 51 Acquisition Management Co., Ltd. Examination Puyang Meinian Onehealth Physical Xiangyang Xiangyang 72 Acquisition Management Co., Ltd. Examination Health Wuhan Meinian Yisheng Health Wuhan Wuhan management 100 Acquisition Management Co., Ltd. consultation Daye Meinian Onehealth Physical Physical Examination Daye Daye 51 Acquisition Examination Management Co., Ltd. Ezhou Meinian Onehealth Physical Ezhou Ezhou 51 Acquisition Management Co., Ltd. Examination Xinxiang Meinian Onehealth Physical Xinxiang Xinxiang 51 Acquisition Management Co., Ltd. Examination Luoyang Meinian Onehealth Physical Information Consulting Co., Luoyang Luoyang 51 Acquisition Examination Ltd.

171 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Liyang Meinian Onehealth Physical Puyang Puyang 51 Acquisition Consulting Co., Ltd. Examination Zhengzhou Meinian Health Zhengzho Physical Zhengzhou 100 Acquisition Medical Management Co., Ltd. u Examination Pingdingshan Meinian Pingdings Physical Onehealth Technology Service Pingdingshan 86 Acquisition han Examination Co., Ltd. Xinyang Meinian Onehealth Physical Xinyang Xinyang 51 Acquisition Management Co., Ltd. Examination Zhuzhou Meinian Onehealth & Physical Wellness Management Co., Zhuzhou Zhuzhou 100 Acquisition Examination Ltd. Yueyang Meinian Onehealth & Physical Yueyang Yueyang 51 Acquisition Health Management Co., Ltd. Examination Xiangtan Meinian Onehealth & Physical Xiangtan Xiangtan 91.76 Acquisition Health Management Co., Ltd. Examination Nanchang Honggu Changgeng Physical Health Physical Examination Nanchang Nanchang 100 Acquisition Examination Center Co., Ltd. Nanchang Qingshan Lake Physical Chang Gung Health Physical Nanchang Nanchang 100 Establishment Examination Examination Center Co., Ltd. Yichun Meinian Onehealth Physical Yichun Yichun 51 Acquisition Physical Examination Co., Ltd. Examination Nanchang Meikang Health Physical Physical Examination Center Nanchang Nanchang 100 Acquisition Examination Co., Ltd. Linyi Meinian Health Physical Physical Examination Management Co., Linyi Linyi 58.9 Acquisition Examination Ltd. Kaifeng Meinian Onehealth Physical Examination Management Co., Kaifeng Kaifeng 51 Acquisition Examination Ltd. Tianjin Binhai New Area Physical Tianjin Tianjin 100 Establishment Meijian Outpatient Co., Ltd. Examination Tianjin Binhai New Area Meixin Physical Tianjin Tianjin 100 Acquisition Outpatient Co., Ltd. Examination Beijing Meinian Outpatient Physical Beijing Beijing 100 Establishment Department Co., Ltd. Examination Beijing Meinian Meikang Physical Beijing Beijing 100 Establishment Outpatient Co., Ltd. Examination Beijing Meinian Chinese Physical Beijing Beijing 100 Establishment Medicine Hospital Co., Ltd. Examination Beijing Meinian Jiajing Physical Beijing Beijing 100 Acquisition Outpatient Co., Ltd. Examination Beijing Meinian Lushengyuan Physical Beijing Beijing 100 Acquisition Outpatient Co., Ltd. Examination Beijing Meinian Meijia Physical Beijing Beijing 100 Establishment Outpatient Co., Ltd. Examination Beijing Meinian Meifu Physical Beijing Beijing 100 Acquisition Outpatient Co., Ltd. Examination Beijing Yang Nian Tang Physical Chinese Medicine Outpatient Beijing Beijing 72.35 Establishment Examination Co., Ltd. Guangzhou Meinian Onehealth Guangzho Investment Guangzhou 97 Establishment Medical Technology Co., Ltd. u management Dongguan Meinian Onehealth Investment Hospital Investment Dongguan Dongguan 100 Acquisition management Management Co., Ltd.

172 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Foshan Meinian Onehealth Physical Examination Management Co., Foshan Foshan 70 Acquisition Examination Ltd. Zhengzhou Hongkangjie Zhengzho Physical Zhengzhou 94.27 Establishment Technology Co., Ltd. u Examination Sichuan Hongkangjie Medical Physical Investment Management Co., Chengdu Chengdu 94.27 Acquisition Examination Ltd. Haikou Ciming Health Physical Outpatient (General Haikou Haikou 74.25 Acquisition Examination Partnership) Shenyang Onehealth and Physical Wellness Management Co., Shenyang Shenyang 100 Acquisition Examination Ltd. Dalian Meinian Onehealth Physical Dalian Dalian 100 Acquisition Management Co., Ltd. Examination Harbin Meinian Onehealth Physical Harbin Harbin 100 Acquisition Examination Station Co., Ltd. Examination Taiyuan Meinian Onehealth Physical Technology Onehealth Taiyuan Taiyuan 100 Acquisition Examination Management Co., Ltd. Qingdao Onehealth Physical Technology Onehealth Qingdao Qingdao 100 Acquisition Examination Management Co., Ltd. Huhehaote Meinian Onehealth Physical Hohhot Hohhot 89.64 Establishment & Health Examination Co., Ltd. Examination Jinan Onehealth and Onehealth Physical Physical Jinan Jinan 100 Acquisition Examination Management Co., Examination Ltd. Shijiazhuang Meinian Onehealth Physical Shijiazhua Physical Shijiazhuang 100 Acquisition Examination Management Co., ng Examination Ltd. Dandong Meinian Onehealth & Physical Dandong Dandong 70 Acquisition Health Management Co., Ltd. Examination Huludao Meinian Onehealth Physical Huludao Huludao 65 Acquisition Management Co., Ltd. Examination Songyuan Meinian Onehealth Physical & Wellness Management Co., Songyuan Songyuan 60 Acquisition Examination Ltd. Xi'an Qujiang Meinian Health Physical Xi'an Xi'an 100 Establishment Examination Center Co., Ltd. Examination Lanzhou Meinian Onehealth Physical Healthcare Management Co., Lanzhou Lanzhou 100 Establishment Examination Ltd. Xinjiang Meinian Onehealth Physical Healthcare Management Co., Urumqi Urumqi 100 Establishment Examination Ltd. Xinjiang Puhuitai Health Physical Urumqi Urumqi 100 Acquisition Management Co., Ltd. Examination Chengdu Meinian Physical Physical Chengdu Chengdu 100 Establishment Examination Hospital Co., Ltd. Examination Chengdu Onehealth Physical Technology Management Co., Chengdu Chengdu 100 Acquisition Examination Ltd. Dali Meinian Physical Physical 47.25(Note Dali Dali Acquisition Examination Hospital Co., Ltd. Examination 2)

173 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Chengdu Kai'er Health Physical Physical Chengdu Chengdu 100 Acquisition Examination Hospital Co., Ltd. Examination Chengdu Tianfu New District Physical Chengdu Chengdu 100 Acquisition Aoya Hospital Co., Ltd. Examination Leshan Meinian Onehealth Physical Leshan Leshan 51 Acquisition Service Co., Ltd. Examination Chongqing Onehealth Physical Chongqin Physical Examination Management Co., Chongqing 96.04 Acquisition g Examination Ltd. Xichang Meinian Onehealth Physical Xichang Xichang 51 Acquisition Health Management Co., Ltd. Examination Suining Meinian Physical Physical Suining Suining 51 Acquisition Examination Hospital Co., Ltd. Examination Deyang Meinian Physical Physical Deyang Deyang 51 Acquisition Examination Hospital Co., Ltd. Examination Chengdu Jinjiang Meinian Physical Onehealth Weikang Medical Chengdu Chengdu 100 Acquisition Examination Outpatient Branch Co., Ltd. Puer Meinian Onehealth Physical Physical Examination Center Pu'er Pu'er 64 Acquisition Examination Co., Ltd. Gunagyuan Meinian Onehealth Guangyua Physical Guangyuan 60 Acquisition Technology Co., Ltd. n Examination Chongqing Onehealth Physical Chongqin Physical Examination Management Co., Chongqing 75.01 Acquisition g Examination Ltd. Nutritional health consultation, Shanghai Meishunhe Health Shanghai Shanghai business 100 Establishment Consulting Co., Ltd. management consulting Heze Meinian Onehealth & Physical Heze Heze 26.01(Note1) Acquisition Health Management Co., Ltd. Examination Dali Ciming Health Physical 47.25(Note Dali Dali Establishment Management Co., Ltd. Examination 2) Health Yuxi Meinian Onehealth 47.00(Note Yuxi Yuxi management Acquisition Industry Co., Ltd. 3) consultation Shanghai Ciming Outpatient Physical Shanghai Shanghai 100 Acquisition Co., Ltd. Examination Shanghai Excellence Ci Ming Physical Shanghai Shanghai 100 Acquisition Outpatient Co., Ltd. Examination Shanghai Zhicheng Ciming Physical Shanghai Shanghai 100 Acquisition Outpatient Co., Ltd. Examination Shanghai Zhengyuan Ciming Physical Shanghai Shanghai 100 Acquisition Outpatient Co., Ltd. Examination Shanghai Chuyuan Ciming Physical Shanghai Shanghai 100 Acquisition Outpatient Co., Ltd. Examination Dongguan Ciming Health Physical Physical Examination Dongguan Dongguan 100 Acquisition Examination Management Co., Ltd. Guangzhou Ciming Outpatient Guangzho Physical Guangzhou 100 Acquisition Co., Ltd. u Examination Guangzhou Ciming Dongfeng Guangzho Physical Guangzhou 100 Acquisition Outpatient Co., Ltd. u Examination Guangzhou Ciming Excellence Guangzho Physical Guangzhou 100 Acquisition Outpatient Co., Ltd. u Examination Dalian Ciming Comprehensive Physical Dalian Dalian 100 Acquisition Outpatient Co., Ltd. Examination

174 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Dalian Ciming Xinghai Xintiandi Physical Comprehensive Outpatient Co., Dalian Dalian 100 Acquisition Examination Ltd. Dalian Ciming High-tech Physical Comprehensive Outpatient Co., Dalian Dalian 100 Acquisition Examination Ltd. Hangzhou Ciming Friendship Physical Comprehensive Outpatient Co., Hangzhou Hangzhou 100 Acquisition Examination Ltd. Beijing Ciming Oya Shangdi Physical Brilliant Outpatient Branch Co., Beijing Beijing 100 Acquisition Examination Ltd. Hefei Shushan Ainuo Health Physical Hefei Hefei 51 Acquisition Outpatient Co., Ltd. Examination Hefei Luyang Ainuo Outpatient Physical Hefei Hefei 51 Acquisition Co., Ltd. Examination Liuan Ainuo Health Outpatient Physical Liu'an Liu'an 51 Acquisition Co., Ltd. Examination Chaohu Aino Health Physical Examination Comprehensive Chaohu Chaohu 51 Acquisition Examination Outpatient Co., Ltd. Wuhu Ainuo Outpatient Co., Physical Wuhu Wuhu 51 Acquisition Ltd. Examination Huaibei Ainuo Wanjia Health Physical Huaibei Huaibei 51 Acquisition Examination Co., Ltd. Examination Chuzhou Ainuo Health Physical Chuzhou Chuzhou 51 Acquisition Outpatient Co., Ltd. Examination Anqing Ainuo Health Outpatient Physical Anqing Anqing 51 Acquisition Co., Ltd. Examination Huainan Aino Health Physical Examination Outpatient Co., Huainan Huainan 51 Acquisition Examination Ltd. Bengbu Economic Physical Development District Aino Bengbu Bengbu 51 Acquisition Examination Outpatient Co., Ltd. Fuyang Yingzhou Ainuo Physical Comprehensive Outpatient Co., Fuyang Fuyang 51 Acquisition Examination Ltd Fuqing Meinian Onehealth & Physical Fuzhou Fuzhou 100 Acquisition Health Management Co., Ltd. Examination Suzhou Meinian Onehealth & Physical Suzhou Suzhou 51 Acquisition Health Management Co., Ltd. Examination Suizhou Meinian Onehealth Physical Suizhou Suizhou 51 Acquisition Management Co., Ltd. Examination Zhumadian Meinian Onehealth Zhumadia Physical Zhumadian 51 Acquisition Technology Co., Ltd n Examination Anyang Meinian Onehealth Physical Anyang Anyang 51 Acquisition Management Co., Ltd. Examination Liaocheng Meinian Onehealth Physical Liaocheng Liaocheng 51 Acquisition Management Co., Ltd. Examination Fuxin Meinian Onehealth & Physical Fuxin Fuxin 51 Acquisition Health Management Co., Ltd. Examination Tangshan Meinian Onehealth Physical & Health Examination Tangshan Tangshan 80.12 Acquisition Examination Management Co., Ltd. Luzhou Meinian Onehealth Physical Luzhou Luzhou 51 Acquisition Technology Co., Ltd Examination Meishan Meinian Onehealth Physical Meishan Meishan 51 Acquisition Management Co., Ltd. Examination

175 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Neijiang Meinian Onehealth & Physical Neijiang Neijiang 51 Acquisition Health Management Co., Ltd. Examination Physical Fourth-level subsidiary Examination Physical New Health Holdings Limited BVI BVI 100 Acquisition Examination Wenzhou Aoya Hospital Co., Physical Wenzhou Wenzhou 82 Acquisition Ltd. Examination Wuhan Meinian Yisheng Physical Comprehensive Outpatient Co., Wuhan Wuhan 100 Acquisition Examination Ltd. Wuhan Renfuyisheng Health Physical Wuhan Wuhan 100 Acquisition Pharmacy Co., Ltd. Examination Huangshi Meinian Onehealth Physical Physical Examination Huangshi Huangshi 51 Acquisition Examination Management Co., Ltd. Linyi Onehealth and Onehealth Physical Physical Examination File Linyi Linyi 58.9 Acquisition Examination Management Co., Ltd. Linyi Meigu Health Physical Health Examination Management Co., Linyi Linyi management 58.9 Acquisition Ltd. consultation Guangzhou Meinian Medical Guangzho Physical Guangzhou 97 Establishment Outpatient Co., Ltd. u Examination Guangzhou Meinian Health Guangzho Physical Guangzhou 97 Establishment Fuhai Outpatient Co., Ltd. u Examination Guangdong Youyi Health Guangzho Physical Guangzhou 67.9 Acquisition Management Co., Ltd. u Examination Health Zhongshan Meinian Onehealth Zhongsha Zhongshan management 97 Acquisition Management Co., Ltd. n consultation Heyuan MeiyinOnehealth Physical Heyuan Heyuan 65.96 Acquisition Management Co., Ltd. Examination Dongguan Nancheng Meinian Physical Dongguan Dongguan 100 Establishment Onehealth Outpatient Co., Ltd. Examination Liaoyang Meinian Onehealth & Physical Wellness Management Co., Liaoyang Liaoyang 100 Acquisition Examination Ltd. Dalian Lushun Meinian Onehealth New City Health Physical Dalian Dalian 100 Acquisition Comprehensive Outpatient Examination Department Co., Ltd. Dalian Meinian Health Xinghai Health Physical Comprehensive Outpatient Co., Dalian Dalian 100 Establishment Examination Ltd. Dalian Meinian Health Hongxia Road Comprehensive Health Physical Dalian Dalian 100 Establishment Outpatient Department Co., Examination Ltd. Dalian Meinian Onehealthy Life Health Physical Dalian Dalian 100 Establishment Technology Co., Ltd. Examination Onehealth Health Physical Technology Management Co., Jilin Jilin 100 Acquisition Examination Ltd. Yanbian Meinian Onehealth Health Physical Comprehensive Outpatient Yanji 100 Acquisition Examination Department Co., Ltd. Yuncheng Meinian Onehealth Health Physical Yuncheng Yuncheng 51 Establishment Medical Examination Co., Ltd. Examination

176 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

JinzhongMeinian Onehealth Health Physical Jinzhong Jinzhong 51 Acquisition Management Co., Ltd. Examination Qingdao NanOnehealth Health Physical Qingdao Qingdao 99.9 Acquisition Outpatient Co., Ltd. Examination Qingdao NanMeinian Health Physical Qingdao Qingdao 100 Establishment Onehealth Outpatient Co., Ltd. Examination Weifang Meinian Onehealth & Health Physical Wellness Management Co., Weifang Weifang 51 Acquisition Examination Ltd. Yantai Ciming Health Physical Health Physical Examination Management Co., Yantai Yantai 97 Acquisition Examination Ltd. Handan City Meinian Health Physical Onehealth Management Co., Handan Handan 51 Acquisition Examination Ltd. Lanzhou Meinian Onehealth Health Physical Jinmao Healthcare Lanzhou Lanzhou 100 Acquisition Examination Management Co., Ltd. Mianyang Meinian Onehealth Health Physical Meiyang Meiyang 60 Acquisition Technology Co., Ltd. Examination Chengdu Wuhou Weikang Health Physical Meinian Onehealth Outpatient Chengdu Chengdu 100 Acquisition Examination Co., Ltd. Yuxi Meinian Onehealth Physical 47.00(Note Physical Examination Center Yuxi Yuxi Acquisition Examination ) Co., Ltd. 3 Dongguan Nancheng Ciming Physical Dongguan Dongguan 100 Establishment Outpatient Co., Ltd. Examination Xianggan Investment Beauty Year Health Co., Ltd. Xianggang 100 Establishment g management Huizhou Meinian Onehealth & Physical 49.47(Note Huizhou Huizhou Acquisition Health Management Co., Ltd. Examination 4) Jiangmen Meinian Onehealth & Physical Jiangmen Jiangmen 67.9 Acquisition Health Management Co., Ltd. Examination Qingyang Meinian Onehealth & Physical Qingyang Qingyang 51 Acquisition Health Management Co., Ltd. Examination Xining Meinian Onehealth & Physical Xining Xining 51 Acquisition Health Management Co., Ltd. Examination Zigong Meinian Onehealth Physical Zigong Zigong 51 Acquisition Examination Hospital Co., Ltd. Examination Fifth-level subsidiaries Xianggan Investment Meijia Health Holdings Co., Ltd. Xianggang 81 Acquisition g management Zhongshan Meinian Outpatient Zhongsha Physical Zhongshan 97 Acquisition Department Co., Ltd. n Examination Weifang Meinian Huier Health Physical Weifang Weifang 51 Acquisition Management Co., Ltd. Examination American Year Investment Co., Investment BVI BVI 100 Establishment Ltd. management Sixth-level subsidiary Meizhao Life Beijing Capital Investment Samoya Samoya 81 Acquisition Holdings Co., Ltd. management Meizhao Life Shanghai Capital Investment Samoya Samoya 81 Acquisition Holdings Co., Ltd. management Seventh-level subsidiary Beijing Meizhao Health Physical Beijing Beijing 56.7 Acquisition Physical Examination Center Examination

177 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Co., Ltd.

Shanghai Meizhao Outpatient Physical Shanghai Shanghai 56.7 Acquisition Co., Ltd. Examination Note 1: Meinian Onehealth holds 100.00% equity of Shenyang Meinian Health Technology Health Management Co., Ltd., and 100.00% equity of Tai'an Meinian Onehealth Physical Examination Management Co., Ltd.; Shenyang Meinian Health Technology Health Management Co., Ltd. holds 100.00% equity of Jinan Onehealth Health Physical Examination Management Co., Ltd.; Jinan Onehealth Health Physical Examination Management Co., Ltd. holds 31.00% equity of Heze Meinian Onehealth Physical Examination Management Co., Ltd.; Tai'an Meinian Onehealth Physical Examination Management Co., Ltd. holds 20.00% equity of Heze Meinian Onehealth Physical Examination Management Co., Ltd.; Heze Meinian Onehealth Physical Examination Management Co., Ltd. holds 51.00% equity of Heze Meinian Onehealth Health Management Co., Ltd.; so the Company holds 51.00% equity of Heze Meinian Onehealth Physical Examination Management Co., Ltd. and 26.01% equity of Heze Meinian Onehealth Health Management Co., Ltd. Note 2: Meinian Onehealth holds 100.00% equity of Chengdu Meinian Onehealth Health Management Co., Ltd.; Meinian Onehealth holds 75.00% equity of Yunnan Meinian Onehealth Health Co., Ltd.; Chengdu Meinian Onehealth Health Management Co., Ltd. holds 36.00% equity of Dali Meinian Physical Examination Hospital Co., Ltd.; Yunnan Meinian Onehealth Healthcare Co., Ltd. holds 15.00% equity of Dali Meinian Physical Examination Hospital Co., Ltd.; Dali Meinian Onehealth Physical Examination Hospital Co., Ltd. holds 100% equity of Dali Ciming Health Management Co., Ltd., so the Company holds 47.25% of Dali Meinian Onehealth Physical Examination Hospital Co., Ltd. and Dali Ciming Health Management Co., Ltd. Note 3: Meinian Onehealth holds 75.00% equity of Yunnan Meinian Onehealth Healthcare Co., Ltd. and 100.00% equity of Yunnan Meinian Health Management Co., Ltd.; Yunnan Meinian Onehealth Healthcare Co., Ltd. holds 16.00% equity of Yuxi Meinian Onehealth Industry Co., Ltd.; Yunnan Meinian Health Management Co., Ltd. holds 35.00% equity of Yuxi Meinian Onehealth Industry Co., Ltd.; Yuxi Meinian Onehealth Industry Co., Ltd. holds 100.00% equity of Yuxi Meinian Onehealth Physical Examination Center Co., Ltd.; so the Company holds 47.00% equity of Yuxi Meinian Onehealth Industry Co., Ltd. and 47.00% equity of Yuxi Meinian Onehealth Physical Examination Center Co., Ltd. Note 4: Meinian Onehealth holds 100% equity of Shenzhen Meinian Onehealth Healthcare Co., Ltd.,and 85% equity of Guangdong Meinian National Medical Investment Co., Ltd. Meinian Onehealth holds a 10% equity of Guangzhou Meinian Onehealth Medical Technology Co., Ltd., Shenzhen Mei Nian Da Health &

178 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Health Management Co., Ltd. holds 70% equity of Guangzhou Meinian Onehealth Medical Technology Co., Ltd. Co., Ltd. holds 20% equity of Guangzhou Meinian Onehealth Medical Technology Co., Ltd., Guangzhou Meinian Onehealth Medical Technology Co., Ltd. holds 51% equity of Huizhou Meinian Onehealth Health Management Co., Ltd., so the Company holds Huizhou City Meinian Onehealth Health Management Co., Ltd. 49.47% equity. (2) Significant non-wholly owned subsidiaries Profit or loss Dividends Shareholding attributable to distributed to Closing balance of proportion of Name of Subsidiaries non-controlling non-controlling non-controlling non-controlling shareholders this shareholders this shareholders' equity shareholders (%) year year Shenzhen Hongkangjie Technology Co., Ltd. 6.00 811,372.58 8,693,294.94 Hainan Meinian Onehealth Healthcare Hospital Co., Ltd. 25.00 -179,204.39 18,997,425.74 Yunnan Meinian Onehealth Healthcare Co., Ltd. 25.00 -3,429,067.01 19,270,616.94 (3) Main financial information of significant non-wholly owned subsidiaries

Closing balance Subsidiary Non-current Current Non-current Current assets Total assets Total liabilities assets liabilities liabilities Shenzhen Hongkangjie Technology Co., 174,098,215.83 8,472,116.68 182,570,332.51 35,715,451.81 35,715,451.81 Ltd. Hainan Meinian Onehealth Healthcare 54,453,326.25 73,360,968.75 127,814,295.00 43,542,183.14 8,282,408.90 51,824,592.04 Hospital Co., Ltd. Yunnan Meinian Onehealth Healthcare Co., 66,805,195.41 104,966,024.76 171,771,220.17 87,451,348.20 7,237,404.15 94,688,752.35 Ltd. (Cont.)

Opening balance Subsidiary Non-current Current Non-current Current assets Total assets Total liabilities assets liabilities liabilities Shenzhen Hongkangjie Technology Co., 183,127,117.20 8,264,319.04 191,391,436.24 54,256,004.46 54,256,004.46 Ltd. Hainan Meinian Onehealth Healthcare 67,574,122.95 75,686,430.93 143,260,553.88 53,198,555.52 13,355,477.84 66,554,033.36 Hospital Co., Ltd. Yunnan Meinian Onehealth Healthcare Co., 93,301,711.78 106,825,738.89 200,127,450.67 98,841,084.30 10,506,761.91 109,347,846.21 Ltd. (Cont.)

179 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Current year Total Subsidiary Cash flow from Operating revenue Net profits comprehensive operating activities incomes Shenzhen Hongkangjie 44,914,643.60 9,719,448.92 9,719,448.92 5,650,492.94 Technology Co., Ltd. Hainan Meinian Onehealth 22,369,722.08 -716,817.56 -716,817.56 -41,454,211.70 Healthcare Hospital Co., Ltd. Yunnan Meinian Onehealth 49,346,126.88 -13,716,268.03 -13,716,268.03 -11,735,326.96 Healthcare Co., Ltd. (Cont.) Prior year Total Subsidiary Cash flow from Operating revenue Net profits comprehensive operating activities incomes Shenzhen Hongkangjie Technology 155,653,948.97 48,447,686.29 48,447,686.29 83,933,379.62 Co., Ltd. Hainan Meinian Onehealth 74,963,309.63 10,505,655.16 10,505,655.16 27,089,891.71 Healthcare Hospital Co., Ltd. Yunnan Meinian Onehealth 164,460,051.70 30,587,079.98 30,587,079.98 28,788,985.41 Healthcare Co., Ltd. 2. The share of the owner's equity in the subsidiary changes and still controls over the transactions in the subsidiaries (1) Description of the change of owner’s equity share in the subsidiary ① Acquisition of minority stakes resulted in changes in the share of owners’ equity in subsidiaries From January to June 2019, the Company acquired its subsidiaries a minority equity: Chengdu Jinjiang Meinian Onehealth Health Clinic Co., Ltd., Taiyuan Meinian Onehealth Technology Health Management Co., Ltd., Lanzhou Meinian Onehealth Jinmao Health Management Co., Ltd. Pingdingshan Meinian Onehealth Technology Service Co., Ltd., Shenzhen Hongkangjie Technology Co., Ltd., Zhongshan Meinian Health Management Co., Ltd., Dali Ciming Health Management Co., Ltd. ② The minority shares have not been disposed of in the current period (2) The impact of the transaction on minority shareholders' equity and ownership of the owner's equity Chengdu Jinjiang Lanzhou Meinian Taiyuan Meinian Onehealth Meinian Health Onehealth Jinmao Technology Health Items Guoweikang Medical Health Management Management Co., Ltd. Clinic Branch Co., Ltd. Co., Ltd. Consideration of purchase cost

-Cash 54,000,000.00 32,500,000.00 22,050,000.00

180 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Chengdu Jinjiang Lanzhou Meinian Taiyuan Meinian Onehealth Meinian Health Onehealth Jinmao Technology Health Items Guoweikang Medical Health Management Management Co., Ltd. Clinic Branch Co., Ltd. Co., Ltd. -Fair value of non-monetary assets

Total Consideration of purchase cost 54,000,000.00 32,500,000.00 22,050,000.00 Less: Subsidiary net assets share based on the proportion of equity acquired 13,166,706.62 15,839,109.73 9,126,889.72 Difference 40,833,293.38 16,660,890.27 12,923,110.28

Including: Adjusted capital reserve 40,833,293.38 16,660,890.27 12,923,110.28 (Cont.) Pingdingshan Meinian Onehealth Shenzhen Hongkangjie Technology Items Technology Service Co., Ltd. Co., Ltd. Consideration of purchase cost

-Cash 19,950,000.00 12,600,000.00 -Fair value of non-monetary assets

Total Consideration of purchase cost 19,950,000.00 12,600,000.00 Less: Subsidiary net assets share based on the proportion of equity acquired 4,852,046.20 4,287,390.28 Difference 15,097,953.80 8,312,609.72

Including: Adjusted capital reserve 15,097,953.80 8,312,609.72 (Cont.) Zhongshan Meinian Onehealth Dali Ciming Health Management Co., Items Management Co., Ltd. Ltd. Consideration of purchase cost

-Cash 10,800,000.00 6,720,000.00 -Fair value of non-monetary assets

Total Consideration of purchase cost 10,800,000.00 6,720,000.00 Less: Subsidiary net assets share based on the proportion of equity acquired 3,173,928.45 7,888,512.89 Difference 7,626,071.55 -1,168,512.89

Including: Adjusted capital reserve 7,626,071.55 -1,168,512.89 3. Equity in Associated Enterprise (1) Important joint venture Accounting treatment Main Shareholding (%) Joint Venture or Registration method for investment in business Business nature Associated Enterprise place joint ventures or Associated place Direct Indirect Enterprise Technical consultation Shanghai Haozhuo Shanghai Shanghai and technical services 11.40 Equity method Data Service Co., Ltd. in date service field Jiangsu Huakang Consultation and Wuxi Wuxi 35.00 Equity method Vocational Health service marketing

181 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Joint Venture or Main Registration Accounting treatment Business nature Shareholding (%) Associated Enterprise business place method for investment in Consulting Co., Ltd. planning for occupational disease prevention (2) Main financial information of significant joint ventures Closing balance/amount incurred this year Item Shanghai Haozhuo Data Service Co., Jiangsu Huakang Vocational Health Ltd. Consulting Co., Ltd. Current assets 2,201,300.83 34,690,323.13

Non-current assets 5,558,440.54 34,442,434.61

Total assets 7,759,741.37 69,132,757.74

Current liabilities 19,756,439.73 46,625,458.64

Non-current liabilities 4,396,317.00

Total liabilities 19,756,439.73 51,021,775.64

Non-controlling equity 2,686,774.80 Shareholders' equity attributable to parent company -11,996,698.36 15,424,207.30 Net assets share calculated at shareholding ratio -1,367,623.61 5,398,472.56 Book value of equity investment to associated enterprise 5,398,472.56 Operating revenue 7,649,700.96 22,287,097.07

Net profit -7,968,552.14 -643,021.89 Net profits from termination of operation Other comprehensive incomes

Total comprehensive incomes -7,968,552.14 -643,021.89 Dividends obtained from associated enterprises (3) Summarized financial information of insignificant joint venture or associated enterprise

Item Closing balance / amount incurred this year

Associated Enterprise:

Total Book Value for Investment 71,927,960.26

Total of the followings calculated at the proportion of shareholding

-Net profits -3,475,216.95

-Other comprehensive income

-Total comprehensive income -3,475,216.95 (4) Excessive loss in associates or joint venture

182 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Accumulative unrecognized Unrecognized loss (or net Accumulative Name of Joint Venture or Associated loss at the end of the prior profits shared) in the unrecognized loss at the Enterprise year current year end of this year Shanghai Haozhuo Data Service Co., Ltd. 459,123.72 908,414.94 1,367,538.66

IX. Risks Related to Financial Instruments The major financial instruments of the Company included borrowings, receivables, payables, and available-for-sale financial assets, etc. Refer to relevant items in VI in the Notes for the detailed description of the financial instruments. Risks related to these financial instruments and risk management policies adopted for reducing these risks by the Company are described as follows. Management of the Company managed and supervised these risk exposures to ensure that the above risks were controlled in the limited scope. The Company adopted sensitive analysis technology to analyze the possible influences from the reasonable and possible changes in risk variables to profit or loss for the period or shareholders' equity. Since it is seldom that any risk variables change individually, but relevance between the variables will play a significant role on amount finally influenced by the changes in a certain risk variable; therefore, the above contents are conducted under the assumption that changes in each variable happens individually. Objectives and Policies of Risk Management The objective of the Company to engage in risk management is to obtain suitable balance between risk and profits, to minimize the negative influence from the risk to the business performance of the Company and to maximize the interests of shareholders and other equity investors. Based on the objective of risk management, the basic strategy of risk management of the Company is to determine and analyze all risks the Company faces and to set up suitable bottom line of risk standing and to manage risks, as well as to timely and reliably supervise all risks and control the risk into the limited scope. 1. Market Risks (1) Foreign exchange risk Foreign exchange risk refers to risk of loss caused by changes in exchange rate. The foreign exchange risk of the Company is mainly related to USD and SGD. The subsidiaries of the Company, Meijia Health Holdings Co., Ltd., mainly carries out sales in the currencies of HKD, Meizhao Life Shanghai Capital Holdings Co.,

183 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Ltd. and Meizhao Life Beijing Capital Holdings Co., Ltd. carry out sales in USD. The other major business activities of the Company are priced and settled in RMB. As at December 31, 2017, except for the assets or liabilities mentioned in the table below, the assets and liabilities of the Company are all in RMB. The foreign exchange risk arising from the assets and liabilities of these foreign currency balances may have an impact on the Company's operating results.

Items 2019-6-30 2019-1-1 2018-12-31

Cash and cash equivalent

Including: USD 32,409,005.69 1,389,093.40 1,389,093.40

SGD 139,300.00 139,300.00 139,300.00

Accounts receivable

Including: USD 267,579.76

Other receivables

Including: USD 1,620.00 1,620.00 1,620.00

Interest payable

Including: USD 3,788,888.47

Other payables

Including: USD 3,438.79 3,407.90 3,407.90

Bonds payable

Including: USD 194,628,450.28

Note: The Company closely monitors the impact of foreign exchange changes on the Company's foreign exchange risk. The Company has not taken any measures to avoid foreign exchange risk. Sensitivity Analysis of Foreign Exchange Risk: Assumption of sensitivity analysis of foreign exchange risk: On the condition that other variables do not change, the pre-tax influence of the possible reasonable change of the exchange rate on the profit or loss of the current period and shareholder’s equity:

2019.1-2019.6 2018.1 -2018.6 Effect on Effect on Items Changes of exchange rate Effect on net Effect on net shareholders' shareholders' profit profit equity equity USD Appreciation of 1% to RMB -11,394,304.60 -11,394,304.60 90,929.55 90,929.55

USD Devaluation of 1% to RMB 11,394,304.60 11,394,304.60 -90,929.55 -90,929.55

SGD Appreciation of 1% to RMB 7,077.14 7,077.14 6,696.05 6,696.05

184 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

SGD Devaluation of 1% to RMB -7,077.14 -7,077.14 -6,696.05 -6,696.05 (2) Interest rate risk - cash flow change risk The Company's risk of changes in cash flow from financial instruments due to changes in interest rates is mainly related to floating interest rate bank borrowings (refer to Note VI. 20 and VI. 28). The Company's policy is to maintain the floating rate of these borrowings. Sensitivity Analysis of Interest Rate Risk: Sensitivity analysis of interest rate risk is based on the following assumption:  Changes in market interest rates affect interest income or expenses of variable rate financial instruments; On the basis of the above assumptions, the pre-tax effects of reasonable changes in interest rates on current profit and loss and shareholders' equity are as follows, with other variables unchanged: 2019.1-2019.6 2018.1 -2018.6 Changes of Effect on Items Effect on net Effect on exchange rate shareholders' Effect on net profit profit shareholders' equity equity Short-term Increased by 1% borrowings -23,611,677.46 -23,611,677.46 -23,043,980.52 -23,043,980.52 Short-term Decreased by 1% borrowings 23,611,677.46 23,611,677.46 23,043,980.52 23,043,980.52 Long-term Increased by 1% borrowings -16,099,954.62 -16,099,954.62 -16,894,427.32 -16,894,427.32 Long-term Decreased by 1% borrowings 16,099,954.62 16,099,954.62 16,894,427.32 16,894,427.32 Long-term Increased by 1% bonds -18,369,135.97 -18,369,135.97 -8,950,374.28 -8,950,374.28 Long-term Decreased by 1% bonds 18,369,135.97 18,369,135.97 8,950,374.28 8,950,374.28 2. Credit Risk On June 30, 2019, the maximum credit risk exposure that may cause financial losses of the Company was mainly due to the loss of the financial assets of the Company caused by the failure of the other party to perform its obligations and the financial guarantees assumed by the Company. The Company manages credit risk by portfolio, and credit risk mainly arises from bank deposits, accounts receivable and other receivables. The Company's bank deposits are mainly deposited with state-owned banks and other large and medium-sized listed banks. The Company believes that it does not have significant credit risk and will not bear any major losses due to the default of the other party.

185 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

The Company's receivables are mainly for medical examination services, and the Company only deals with recognized and reputable third parties. The Company's balance of accounts and the ageing of accounts receivable are continuously monitored to ensure that the Company's overall credit risk is within the controllable range. The Company's other receivables are mainly for the margins, deposits, and transactions required to carry out the business. The Company manages and continuously monitors the funds with the economic business to ensure that the Company does not face the risk of large bad debts. 3. Liquidity Risk When managing liquidity risk, the Company maintains and monitors cash and cash equivalents deemed adequate by management to meet the Company's operational needs and mitigate the effects of fluctuations in cash flows. The management of the Company monitors the use of bank borrowings and ensures compliance with the loan agreement.

X. Disclosure of fair value 1. Closing balance of assets and liabilities measured at fair value Closing balance of fair value First level fair Second level Items Third level fair value value fair value Total measurement measurement measurement Other non-current financial assets 1,297,241,515.70 1,297,241,515.70 Total assets that continue to be 1,297,241,515.70 1,297,241,515.70 measured at fair value 2. Basis for determining the market price of continuous and non-sustainable first-level fair value measurement projects The first level input value, the unadjusted quotation of the same assets or liabilities that can be obtained on the measurement date in an active market. 3. Continuing and non-sustainable second-level fair value measurement projects, using valuation techniques and qualitative and quantitative information on important parameters The second level input value, in addition to the input value of the first level, the directly or indirectly observable input value of the relevant asset or liability. 4. Continuing and non-sustainable third-level fair value measurement projects, using valuation techniques and qualitative and quantitative

186 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

information on important parameters Discounted cash flow calculation method. Unobservable input values include income growth rate, discount rate, and regional performance to achieve risk rate. The income growth rate is based on the forecast of the management of the invested company. The discount rate is based on the expected return on investment. The regional performance is based on the performance of the region. Realize risk prediction of historical data. XI. Related Parties and Related Parties Transactions 1. Information of Parent Company of the Company The Company has no holding company and the final control party is Yu Rong. 2. Subsidiaries of the Company Refer to the Notes VIII. 1. Rights and Interests in the Subsidiaries 3. Conditions of Associated Enterprise of the Company Refer to the Notes VIII. 3. Rights and Interests in Associated Enterprises for significant joint ventures and associated enterprises of the Company. 4. Other Related Parties

Other related party names Relationship of other related parties with the Company Shenzhen Aoya Health Management Co., Ltd. Controlled by the actual-controller

Guangzhou Meinian Onehealth Medical Technology Co., Ltd. Controlled by the actual-controller

Zhengzhou Meijian Health Management Co., Ltd. Controlled by the actual-controller

Nanjing Meiyi Outpatient Co., Ltd. Controlled by the actual-controller

Shenzhen Yierkang Health Management Co., Ltd. Controlled by the actual-controller

Xiamen Ciming Health Management Co., Ltd. Controlled by the actual-controller

Shanghai Meikai Outpatient Co., Ltd. Controlled by the actual-controller

Yinchuan Elephant Doctor Internet Hospital Co., Ltd. Controlled by the actual-controller

Jinan Meinian Onehealth Technology Co., Ltd. Controlled by the actual-controller Chengdu Jinniu Meinian Onehealth Management Consulting Co., Controlled by the actual-controller Ltd. chengdu Meizhao Outpatient Co., Ltd. Controlled by the actual-controller

Wuhan Meinian Onehealth Technology Management Co., Ltd. Controlled by the actual-controller Jilin Changyi District Meinian Onehealth Technology Management Controlled by the actual-controller Co., Ltd. Nanjing Meilu Outpatient Co., Ltd. Controlled by the actual-controller

Shenzhen Meiyang Health Management Co., Ltd. Controlled by the actual-controller

Shanghai Meiwei Dental Care Management Group Co., Ltd. Controlled by the actual-controller

187 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Zhuhai Meinian Onehealth & Health Management Co., Ltd. Controlled by the actual-controller

Guangdong Meiciaoya Health Management Co., Ltd. Controlled by the actual-controller

Zhengzhou Meizhao Health Medical Management Co., Ltd. Controlled by the actual-controller

Dongguan Humen Meinian Onehealth Outpatient Co., Ltd. Controlled by the actual-controller

Xi'an Meizhao Health Management Co., Ltd. Controlled by the actual-controller Taizhou Meizhao Health Physical Examination Center (general Controlled by the actual-controller partnership) Changchun Meijian Health Technology Co., Ltd. Controlled by the actual-controller

Shanghai Meizhao Zheyuan Outpatient Co., Ltd. Controlled by the actual-controller

Maanshan Meinian Onehealth Consulting Co., Ltd. Controlled by the actual-controller

Shenzhen Meizhao Health Management Co., Ltd. Controlled by the actual-controller

Chengdu Wuhou Meinian Onehealth Outpatient Co., Ltd. Controlled by the actual-controller

Chengdu Meinian Onehealth Center Onehealth Outpatient Co., Ltd. Controlled by the actual-controller

Guangzhou Meinian Onehealth Hospital Management Co., Ltd. Controlled by the actual-controller Guangzhou Huadu District Meinian Onehealth Management Co., Controlled by the actual-controller Ltd. Chongqing Meizhao Hospital Management Co., Ltd. Controlled by the actual-controller

Jinjiang Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller

Shaoxing Meizhao Out-patient Medical Co., Ltd. Controlled by the actual-controller

Guangzhou Meizhao Health Management Co., Ltd. Controlled by the actual-controller

Shanghai Elephant Medical Health Technology Co., Ltd. Controlled by the actual-controller

Shanghai Haozhuo Data Service Co., Ltd. Controlled by the actual-controller

Shenzhen Honghui Investment Co., Ltd. Controlled by the actual-controller

Shanghai Jiuyi Information Technology Co., Ltd. Controlled by the actual-controller

Nanchang Meiwei Dental Outpatient Co., Ltd. Controlled by the actual-controller Shanghai Baozhongtang Chinese Medicine Outpatient Department Controlled by the actual-controller Co., Ltd. Shanghai Jianyi Investment Center (Limited Partnership) Controlled by the actual-controller

Shenyang Aoya Hospital Co., Ltd. Controlled by the actual-controller

Yunnan Ciming Health Service Co., Ltd. Controlled by the actual-controller

Guangzhou Zengcheng Meinian Health Management Co., Ltd. Controlled by the actual-controller

Putian Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller

Shandong Meiming Aoya Health Consulting Co., Ltd. Controlled by the actual-controller

Kunming Meizhao Health Management Co., Ltd. Controlled by the actual-controller

Nan'an Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller

Shaoxing Meinian Outpatient Co., Ltd. Controlled by the actual-controller

188 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Tianjin Binhai New Area Ciai Outpatient Co., Ltd. Controlled by the actual-controller

Foshan Wanda Meizhao Health Management Co., Ltd. Controlled by the actual-controller

Tianjin Heping District Meinian Meijia Health Management Co., Ltd. Controlled by the actual-controller

Yangzhou Meihao Health Management Co., Ltd. Controlled by the actual-controller

Xiamen Yincheng Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller

Harbin Aoya Health Management Co., Ltd. Controlled by the actual-controller

Wuxi Meizhao Outpatient Co., Ltd. Controlled by the actual-controller

Guizhou Jizhong Health Management Co., Ltd. Controlled by the actual-controller

Changsha Meizhao Medical Management Co., Ltd. Controlled by the actual-controller

Tianjin Ciming Aoya Hospital Management Consulting Co., Ltd. Controlled by the actual-controller

Meiwei (Guangzhou) Oral Health Medical Investment Co., Ltd. Controlled by the actual-controller

Chengdu Aidi Eye Hospital Co., Ltd. Controlled by the actual-controller

Huangshan Meinian Onehealth Consulting Co., Ltd. Controlled by the actual-controller

Qingdao Meiweile Medical Management Co., Ltd. Controlled by the actual-controller

Shanghai Zhongwei Anjian Venture Capital Management Co., Ltd. Controlled by the actual-controller

Jinjian Technology Service (Beijing) Co., Ltd. Controlled by the actual-controller

Meizhi Health Management (Beijing) Co., Ltd. Controlled by the actual-controller

Tonglu Meinian Medical Examination Center Co., Ltd. Controlled by the actual-controller

Dongguan Changan Meinian Health Management Co., Ltd. Controlled by the actual-controller

Fuzhou Changle District Meici Health Management Co., Ltd. Controlled by the actual-controller

Beijing Tianyi Hongfang Investment Management Co., Ltd. Controlled by the actual-controller

Tianjin Nankai District Mei'ao Dental Outpatient Co., Ltd. Controlled by the actual-controller

Shanghai Bairuisi Enterprise Management Co., Ltd. Controlled by the actual-controller

Shanghai Tianyi Hongfang Enterprise Management Co., Ltd. Controlled by the actual-controller

Shanghai Tianyi Hongfang Property Management Co., Ltd. Controlled by the actual-controller

Nanjing Baozhongtang Medical Technology Co., Ltd. Controlled by the actual-controller

Houma Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller Shanghai Baozhongtang Lushan Traditional Chinese Medicine Controlled by the actual-controller Outpatient Co., Ltd. Tianjin Meiweile Health Management Co., Ltd. Controlled by the actual-controller Nantong Meizhao Meinian Health Industry M&A Investment Fund Controlled by the actual-controller (Limited Partnership) Jiaxing Xinwen Ganfu Equity Investment Partnership (Limited Controlled by the actual-controller Partnership) Zhongguancun Meinian Health Industry Research Institute Actual-controller holds office in the institution

Beijing Yinxin Changyuan Technology Co., Ltd. Actual-controller holds office in the Company

189 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Hangzhou Haozhuo You Medical Data Technology Co., Ltd. Actual-controller holds office in the Company Hangzhou Aidi Kang Medical Testing Center Co., Ltd. and its Other related parties subsidiaries Fuyang Meinian Onehealth Examination Management Co., Ltd. Joint venture

Yantai Meinian Onehealth Examination Management Co., Ltd. Joint venture

Anshun Ciming Health Examination Management Co., Ltd. Joint venture

Dongying Meinian Onehealth Co., Ltd. Joint venture Mengcheng county Meinian Onehealth Examination Management Joint venture Co., Ltd. Weihai Guoji Meinian Onehealth Examination Center Co., Ltd Joint venture

Xianning Meinian Onehealth Examination Management Co., Ltd. Joint venture

Leshan Ciming Health Examination Service Co., Ltd. Joint venture

Luoyang Meinian Onehealth Technology Co., Ltd. Joint venture

Enshi Meinian Onehealth Management Co., Ltd. Joint venture

Huai'an Ciming Huakang Outpatient Co., Ltd. Joint venture

Yixing Meinnian Comprehensive Outpatient Co., Ltd. Joint venture

Wuxi Ciming Aoya Outpatient Co., Ltd. Joint venture Wuxi Huishan Huakang Supervision Department Outpatient Co., Joint venture Ltd. Weihai Meinian Onehealth Examination Center Co., Ltd Joint venture

Wenshan Meinian Onehealth Examination Center Co., Ltd. Joint venture

Baoshan Meinian Onehealth Examination Center Co., Ltd. Joint venture

Dalian pulan Meinian Comprehensive Health Outpatient Co., Ltd. Joint venture

Bijie Meinian Onehealth Management Co., Ltd. Joint venture

Guyuan Meinian Onehealth Hospital Co., Ltd. Joint venture

Pizhou Ciming Health Examination Management Co., Ltd. Joint venture

Panzhihua Ciming Health Examination Management Co., Ltd. Joint venture Shouguang Meinian Onehealth Physical Examination Management Joint venture Co., Ltd. Zhangzhou Meinian Onehealth Management Co., Ltd. Joint venture

Jiangsu Huakang Vocational Health Consulting Co., Ltd. Joint venture Company controlled by directors of important Cixin (Beijing) Medical Investment Co., Ltd. subsidiaries Company controlled by directors of important Beijing Ciji Network Technology Co., Ltd. subsidiaries Beijing Wandong Medical Technology Co., Ltd. The actual controller significantly affects the Company

Qingdao Meinian Health Technology Health Management Co., Ltd. The actual controller significantly affects the Company

Baisheng (Shenzhen) Medical Equipment Co., Ltd. The actual controller significantly affects the Company

190 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Wuhan Meizhao Health Management Co., Ltd. The actual controller significantly affects the Company

Shanghai Lubinghua Health Technology Co., Ltd. The actual controller significantly affects the Company

Fuzhou Ciming Aoya Health Examination Center Co., Ltd. The actual controller significantly affects the Company

Tianjin Nankai Meizhao Health Examination Center Co., Ltd. The actual controller significantly affects the Company

Anxi Meinian Onehealth Management Co., Ltd. The actual controller significantly affects the Company

Nanning Meiyoukang Health Management Co., Ltd. The actual controller significantly affects the Company

Nanjing Aoya Health Management Co., Ltd. The actual controller significantly affects the Company

Chongqing Meiyi Health Management Co., Ltd. The actual controller significantly affects the Company

Wuhan Meici Aoya Health Management Co., Ltd. The actual controller significantly affects the Company

Huaihua Meinian Onehealth Medical Service Co., Ltd. The actual controller significantly affects the Company

Perfect (China) Co., Ltd. Key manager holds office in the Company

Xuhui Group Co., Ltd. Key manager holds office in the Company

Lead Technology Co., Ltd. Key manager holds office in the Company Shanghai Jiaotong University Shanghai Institute of Advanced Finance Key manager holds office in the Company Deyang Weile Xinqiao Dental Outpatient Co., Ltd. Key manager holds office in the Company

Shandong Wanshu Trading Co., Ltd. Key manager holds office in the Company

Liangpin Shop Co., Ltd. Director's company Shareholder holding more than 5% of the company's Beijing Century Changhe Technology Group Co., Ltd. shares Shareholder control company holding more than 5% of Weifang Century Changhe Economic and Trade Co., Ltd. the company's shares Shareholder control company holding more than 5% of Shanghai Zunran Hospital Co., Ltd. the company's shares Haining Meinian Health Physical Examination Center Co., Ltd. 2018 is the actual controller control company

Anhui Meixin Health Management Consulting Co., Ltd. 2018 is the actual controller control company Dongguan Dongcheng Meizhao Health Examination Management 2018 is the actual controller control company Co., Ltd. Xuancheng Meinian Onehealth Management Co., Ltd. 2018 is the actual controller control company

Taicang Meinian Onehealth Outpatient Co., Ltd. 2018 is the actual controller control company

Zhangjiagang Meinian Onehealth Management Co., Ltd. 2018 is the actual controller control company

Zhangzhou Meinian Onehealth Hospital Co., Ltd. 2018 is the actual controller control company

Xi'an Yinggu Network Technology Co., Ltd. 2018 is the actual controller control company

Shanghai Weiyin Information Technology Co., Ltd. 2018 is the actual controller control company

Hangzhou Yidian Information Technology Co., Ltd. 2018 is the actual controller control company

China Europe International Business School 2018 is the actual controller control company

Tongyi Petroleum Chemical Co., Ltd. 2018 is the actual controller control company

China Europe International Business School Education 2018 is the actual controller control company

191 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Development Foundation

2018 the company was significantly affected by the Hangzhou Yuanzhi Medical Equipment Co., Ltd. actual controller. Chongqing Banan Ciming Comprehensive Outpatient Co., Ltd. 2018 a member of the key management personnel.

Chongqing Ciming Aoya Health Management Co., Ltd. 2018 a member of the key management personnel. Joint ventures from January to November 2018, Kaifeng Meinian Onehealth Examination Management Co., Ltd. subsidiaries after December 2018 Joint ventures from January to March 2018 and Heze Meinian Onehealth Examination Management Co., Ltd. subsidiaries after April 2018 Shareholder of Shandong Ciming Health Physical Wang Shifang Examination Management Co., Ltd. Beijing Huamei Kangxun Information Technology Co., Ltd. The actual controller significantly affects the company

Shandong Wohua Pharmaceutical Technology Co., Ltd. Key manager holds office in the company

Shanghai Guosheng Capital Management Co., Ltd. Key manager holds office in the company

5. Related Parties Transactions (1) Related transactions for the purchase and sale of goods, provision and receipt of labor services ① Purchase of goods / receipt of labor service

Related party Related party transactions Current year Prior year Hangzhou Aidi Kang Medical Testing Center Outgoing examination fee Co., Ltd. and its subsidiaries 29,291,600.17 Beijing Wandong Medical Technology Co., Purchasing equipment Ltd. 25,910,000.00 4,580,000.00 Beijing Wandong Medical Technology Co., Equipment warranty Ltd. 322,433.30 318,699.96 Beijing Ciji Network Technology Co., Ltd. Accepting labor services 11,138,520.88 8,373,056.40

Shenzhen Aoya Health Management Co., Ltd. Medical examination fee 9,785,649.86 Guangzhou Meinian Onehealth Medical Medical examination fee Technology Co., Ltd. 8,884,700.68 7,439,852.94 Qingdao Meinian Health Technology Health Outsourced physical examination fee Management Co., Ltd. 7,999,849.75 Zhengzhou Meijian Health Management Co., Outsourced physical examination fee Ltd. 6,982,303.15 1,458,220.40 Nanjing Meiyi Outpatient Co., Ltd. Outsourced physical examination fee 4,871,433.62 817,386.00 Shenzhen Yierkang Health Management Co., Outsourced physical examination fee Ltd. 4,735,174.11 6,931,043.74 Xiamen Ciming Health Management Co., Ltd. Outsourced physical examination fee 3,402,090.74 4,998,707.21 Baisheng (Shenzhen) Medical Equipment Co., Ltd. Purchasing equipment 3,040,000.00 Shanghai Meikai Outpatient Co., Ltd. Medical examination fee 2,537,571.90 Fuyang Meinian Onehealth Examination Outsourced physical examination fee Management Co., Ltd. 2,445,466.92 Yinchuan Elephant Doctor Internet Hospital Remote film reading service Co., Ltd. 2,419,095.65 Jinan Meinian Onehealth Technology Co., Ltd. Medical examination fee 2,224,279.34

192 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Related party Related party transactions Current year Prior year Chengdu Jinniu Meinian Onehealth Outsourced physical examination fee Management Consulting Co., Ltd. 2,069,768.24 chengdu Meizhao Outpatient Co., Ltd. Outsourced physical examination fee 2,063,041.25

Shandong Wanshu Trading Co., Ltd. Purchasing equipment 1,729,600.00 3,354,375.00 Wuhan Meinian Onehealth Technology Medical examination fee Management Co., Ltd. 1,560,426.06 Jilin Changyi District Meinian Onehealth Outsourced physical examination fee Technology Management Co., Ltd. 1,174,076.24 Nanjing Meilu Outpatient Co., Ltd. Outsourced physical examination fee 955,994.10 Shenzhen Meiyang Health Management Co., Outsourced physical examination fee Ltd. 829,402.95 Zhongguancun Meinian Health Industry Consultation service Research Institute 750,000.00 329,330.00 Shanghai Meiwei Dental Care Management Technical service fee Group Co., Ltd. 709,690.47 805,306.88 Zhuhai Meinian Onehealth & Health Outsourced physical examination fee Management Co., Ltd. 555,231.33 287,676.99 Guangdong Meiciaoya Health Management examination fee Co., Ltd. 454,069.48 Yantai Meinian Onehealth Examination Outsourced physical examination fee Management Co., Ltd. 427,171.17 234,555.09 Zhengzhou Meizhao Health Medical Outsourced physical examination fee Management Co., Ltd. 404,244.00 Dongguan Humen Meinian Onehealth Outsourced physical examination fee Outpatient Co., Ltd. 389,504.16 Xi'an Meizhao Health Management Co., Ltd. examination fee 346,000.00 Taizhou Meizhao Health Physical Examination Outsourced physical examination fee Center (general partnership) 238,741.79 513,900.75 Changchun Meijian Health Technology Co., examination fee Ltd. 231,109.50 Shanghai Meizhao Wuyuan Outpatient Co., examination fee Ltd. 231,022.00 Anshun Ciming Health Examination examination fee Management Co., Ltd. 200,203.84 Dongying Meinian Onehealth Co., Ltd. Outsourced physical examination fee 181,708.75 110,212.00 Maanshan Meinian Onehealth Consulting Co., Outsourced physical examination fee Ltd. 163,254.43 471,354.35 Shenzhen Meizhao Health Management Co., Outsourced physical examination fee Ltd. 162,273.00 Mengcheng county Meinian Onehealth Outsourced physical examination fee Examination Management Co., Ltd. 145,994.41 Wuhan Meizhao Health Management Co., Ltd. Outsourced physical examination fee 125,911.50 Chengdu Wuhou Meinian Onehealth Outsourced physical examination fee Outpatient Co., Ltd. 79,712.98 Weihai Guoji Meinian Onehealth Examination examination fee Center Co., Ltd 70,382.45 150,176.85 Chengdu Meinian Onehealth Center examination fee Onehealth Outpatient Co., Ltd. 55,954.36 Beijing Huamei Kangxun Information Conference fee Technology Co., Ltd. 49,800.00 Guangzhou Meinian Onehealth Hospital Outsourced physical examination fee Management Co., Ltd. 47,166.55

193 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Related party Related party transactions Current year Prior year Xianning Meinian Onehealth Examination examination fee Management Co., Ltd. 43,805.40 Guangzhou Huadu District Meinian Onehealth examination fee Management Co., Ltd. 39,229.00 Chongqing Meizhao Hospital Management examination fee Co., Ltd. 38,700.00 Leshan Ciming Health Examination Service examination fee Co., Ltd. 34,236.00 Luoyang Meinian Onehealth Technology Co., Outsourced physical examination fee Ltd. 30,732.40 176,002.50 Jinjiang Meinian Onehealth Management Co., examination fee Ltd. 30,313.50 Shanghai Lubinghua Health Technology Co., Consultation service Ltd. 30,000.00 Shaoxing Meizhao Out-patient Medical Co., Outsourced physical examination fee Ltd. 29,922.00 Enshi Meinian Onehealth Management Co., examination fee Ltd. 28,515.95 Guangzhou Meizhao Health Management Outsourced physical examination fee Co., Ltd. 23,874.00 Huai'an Ciming Huakang Outpatient Co., Ltd. examination fee 16,795.50 Yixing Meinnian Comprehensive Outpatient Outsourced physical examination fee Co., Ltd. 15,371.00 Wuxi Ciming Aoya Outpatient Co., Ltd. examination fee 13,054.85 Shanghai Elephant Medical Health Remote film reading service Technology Co., Ltd. 4,162,017.30 Xi'an Yinggu Network Technology Co., Ltd. Procurement of intangible assets 1,563,076.92 Shanghai Weiyin Information Technology Co., Customer service system Ltd. 1,240,732.06 Wuxi Huishan Huakang Supervision Outsourced physical examination fee Department Outpatient Co., Ltd. 380,000.00 Chongqing Ciming Aoya Health Management Outsourced physical examination fee Co., Ltd. 364,362.00 Kaifeng Meinian Onehealth Examination Consultation service Management Co., Ltd. 335,055.25 Hangzhou Yidian Information Technology Co., Outsourced physical examination fee Ltd. 100,000.00 Shanghai Haozhuo Data Service Co., Ltd. Consultation service 92,875.00

Shenzhen Honghui Investment Co., Ltd. Consultation service 60,805.00 Shanghai Jiuyi Information Technology Co., Consultation service Ltd. 33,225.00 Nanchang Meiwei Dental Outpatient Co., Ltd. Delivery inspection fee 18,681.20 Shanghai Baozhongtang Chinese Medicine Purchasing equipment Outpatient Department Co., Ltd. 2,739.75 ② Sales of good / provision of labor services

Related party Related party transactions Current year Prior year Physical examination Beijing Ciji Network Technology Co., Ltd. income,TAP subsidy income 18,373,863.69 2,443,352.90 Physical examination Wuhan Meinian Onehealth Technology income,Professional technical Management Co., Ltd. 7,658,577.06 700,000.00 service income,Financing

194 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Related party Related party transactions Current year Prior year lease income,Consulting service income Physical examination Guangzhou Meinian Onehealth Medical income,Financing lease Technology Co., Ltd. income,Consulting service 5,956,861.15 924,168.33 income,Genetic testing income Consulting service Chengdu Meizhao Outpatient Co., Ltd. income,Genetic testing income 4,910,831.10 172,230.24 Professional technical service income,Financing lease Shenzhen Aoya Health Management Co., Ltd. income,Consulting service 4,179,064.44 106,591.48 income Shanghai Jianyi Investment Center (Limited Investment consultant income, Partnership) investment dividends 3,707,023.07 2,527,777.78 Nantong Meizhao Meinian Health Industry M&A Investment consultant Investment Fund (Limited Partnership) income,Investment dividend 3,685,498.69 2,765,981.74 Physical examination income,Financing lease Shenzhen Yierkang Health Management Co., Ltd. income,Consulting service 2,919,039.19 691,553.58 income,Genetic testing income Service income,Physical Shanghai Haozhuo Data Service Co., Ltd. examination income 2,862,578.25 1,764,535.35 Physical examination income,Professional technical Chengdu Jinniu Meinian Onehealth Management service income,Financing Consulting Co., Ltd. 2,703,700.44 2,539,005.82 lease income,Consulting service income Physical examination income,Professional technical Chengdu Meinian Onehealth Center Onehealth service income,Financing Outpatient Co., Ltd. lease income,Consulting 1,734,736.96 service income,Genetic testing income Jiaxing Xinwen Yufu Equity Investment Investment consultant income Partnership (Limited Partnership) 1,646,420.27 2,019,452.05 Physical examination income,Professional technical Yantai Meinian Onehealth Examination service income,Financing Management Co., Ltd. lease income,Consulting 1,539,728.68 225,648.00 service income,Genetic testing income Physical examination income,Professional technical Chengdu Wuhou Meinian Onehealth Outpatient service income,Financing Co., Ltd. lease income,Consulting 1,305,296.30 702,507.55 service income,Genetic testing income Physical examination income,Professional technical Qingdao Meinian Health Technology Health service income,Financing Management Co., Ltd. lease income,Consulting 1,281,271.21 204,831.98 service income,Genetic testing income Physical examination income,Financing lease Shenyang Aoya Hospital Co., Ltd. income,Consulting service 1,249,074.94 income,Genetic testing income

195 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Related party Related party transactions Current year Prior year Physical examination income,Professional technical Dongguan Humen Meinian Onehealth Outpatient service income,Financing Co., Ltd. lease income,Consulting 1,127,461.74 service income,Genetic testing income Financing lease Yunnan Ciming Health Service Co., Ltd. income,Consulting service 1,097,546.18 15,696.23 income Physical examination income,Professional technical Guangzhou Zengcheng Meinian Health service income,Financing Management Co., Ltd. lease income,Consulting 1,016,104.50 700,000.00 service income,Genetic testing income Physical examination income,Professional technical Xiamen Ciming Health Management Co., Ltd. service income,Consulting 908,040.88 110,471.40 service income,Genetic testing income Physical examination Taizhou Meizhao Health Physical Examination income,Financing lease Center (general partnership) income,Consulting service 889,691.70 33,039.89 income,Genetic testing income Physical examination income,Professional technical Guangzhou Huadu District Meinian Onehealth service income,Financing Management Co., Ltd. 759,834.82 700,000.00 lease income,Consulting service income Physical examination income,Financing lease Shenzhen Meizhao Health Management Co., Ltd. income,Consulting service 739,880.37 income Physical examination income,Professional technical Zhuhai Meinian Onehealth & Health Management service income,Financing Co., Ltd. lease income,Consulting 725,805.14 651,286.06 service income,Genetic testing income Professional technical service income,Financing lease Putian Meinian Onehealth Management Co., Ltd. income,Consulting service 718,574.83 722,977.36 income Initial fee income,Financing Shandong Meiming Aoya Health Consulting Co., lease income,Consulting Ltd. 702,494.66 service income Professional technical service Xianning Meinian Onehealth Examination income,Financing lease Management Co., Ltd. income,Consulting service 664,173.76 income Professional technical service income,Financing lease Jinan Meinian Onehealth Technology Co., Ltd. income,Consulting service 663,566.99 income Professional technical service income,Financing lease Shanghai Meikai Outpatient Co., Ltd. income,Consulting service 645,287.81 115,184.82 income

196 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Related party Related party transactions Current year Prior year Weihai Meinian Onehealth Examination Center Service income,Physical Co., Ltd examination income 637,001.17 Chongqing Meizhao Hospital Management Co., Professional technical service Ltd. income 624,764.17 1,500,000.00 Wuhan Meizhao Health Management Co., Ltd. Physical examination income 613,263.82 172,048.00 Physical examination Guangzhou Meizhao Health Management Co., income,Financing lease Ltd. income,Consulting service 595,767.13 101,797.81 income,Genetic testing income Professional technical service Wenshan Meinian Onehealth Examination Center income,Financing lease Co., Ltd. income,Consulting service 577,698.44 income,Genetic testing income Financing lease Guangdong Meiciaoya Health Management Co., income,Consulting service Ltd. 557,108.11 income Financing lease Jilin Changyi District Meinian Onehealth income,Consulting service Technology Management Co., Ltd. 542,155.28 91,802.45 income,Genetic testing income Financing lease Kunming Meizhao Health Management Co., Ltd. income,Consulting service 529,117.45 income Professional technical service Baoshan Meinian Onehealth Examination Center income,Financing lease Co., Ltd. income,Consulting service 511,154.72 income,Genetic testing income Professional technical service Dalian pulan Meinian Comprehensive Health income,Financing lease Outpatient Co., Ltd. income,Consulting service 505,066.22 income,Genetic testing income Financing lease Zhengzhou Meijian Health Management Co., Ltd. income,Consulting service 466,659.62 170,248.82 income Physical examination income,Professional technical Jinjiang Meinian Onehealth Management Co., Ltd. service income,Financing 432,471.29 lease income,Consulting service income Physical examination income,Professional technical Fuyang Meinian Onehealth Examination service income,Financing Management Co., Ltd. lease income,Consulting 412,564.20 service income,Genetic testing income Financing lease Xi'an Meizhao Health Management Co., Ltd. income,Consulting service 388,503.92 income,Genetic testing income Physical examination income,Financing lease Shaoxing Meizhao Out-patient Medical Co., Ltd. income,Consulting service 386,094.98 income,Genetic testing income Professional technical service income,Financing lease Shenzhen Meiyang Health Management Co., Ltd. income,Consulting service 385,499.83 702,507.55 income,Genetic testing income Professional technical service Changchun Meijian Health Technology Co., Ltd. income,Consulting service 382,210.79 131,812.90

197 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Related party Related party transactions Current year Prior year income,Genetic testing income

Professional technical service income,Financing lease Nan'an Meinian Onehealth Management Co., Ltd. income,Consulting service 342,421.39 income,Genetic testing income Bijie Meinian Onehealth Management Co., Ltd. Genetic testing income 333,446.90 Professional technical service income,Financing lease Shaoxing Meinian Outpatient Co., Ltd. income,Consulting service 303,112.33 income Professional technical service income,Financing lease Nanjing Meilu Outpatient Co., Ltd. income,Consulting service 261,665.69 700,000.00 income Physical examination income,Financing lease Wuxi Ciming Aoya Outpatient Co., Ltd. income,Consulting service 251,328.49 271,220.11 income Financing lease Zhengzhou Meizhao Health Medical Management income,Consulting service Co., Ltd. 243,057.55 income Physical examination Weihai Guoji Meinian Onehealth Examination income,Financing lease Center Co., Ltd income,Consulting service 228,515.72 87,151.92 income,Genetic testing income Financing lease Anshun Ciming Health Examination Management income,Consulting service Co., Ltd. 227,221.15 income Financing lease Nanjing Meiyi Outpatient Co., Ltd. income,Consulting service 213,722.94 215,369.83 income,Genetic testing income Professional technical service income,Financing lease Dongying Meinian Onehealth Co., Ltd. income,Consulting service 208,443.49 214,130.30 income Financing lease Shanghai Meizhao Wuyuan Outpatient Co., Ltd. income,Consulting service 192,991.40 income Consulting service Huai'an Ciming Huakang Outpatient Co., Ltd. income,Genetic testing income 190,970.57 21,476.05 Financing lease Tianjin Binhai New Area Ciai Outpatient Co., Ltd. income,Consulting service 190,381.02 90,280.81 income Physical examination income,Professional technical Guangzhou Meinian Onehealth Hospital service income,Financing Management Co., Ltd. 173,135.02 lease income,Consulting service income Financing lease Foshan Wanda Meizhao Health Management Co., income,Consulting service Ltd. 156,747.46 income Physical examination income,Initial fee Leshan Ciming Health Examination Service Co., income,Financing lease Ltd. 153,334.11 collection consulting service fee income,Genetic testing

198 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Related party Related party transactions Current year Prior year income

Professional technical service Tianjin Heping District Meinian Meijia Health income,Financing lease Management Co., Ltd. income,Consulting service 144,427.92 income Physical examination income,Professional technical Maanshan Meinian Onehealth Consulting Co., service income,Financing Ltd. lease income,Consulting 135,585.09 133,724.99 service income,Genetic testing income Professional technical service Guyuan Meinian Onehealth Hospital Co., Ltd. income,Software income 121,362.83 Physical examination Yixing Meinnian Comprehensive Outpatient Co., income,Professional technical Ltd. service income,Genetic testing 112,772.26 income Physical examination Mengcheng county Meinian Onehealth income,Financing lease Examination Management Co., Ltd. income,Consulting service 92,697.45 income,Genetic testing income Liangpin Shop Co., Ltd. Physical examination income 91,786.50 Yinchuan Elephant Doctor Internet Hospital Co., Physical examination income Ltd. 77,586.80 Professional technical service Yangzhou Meihao Health Management Co., Ltd. income,Software income 68,160.03 Financing lease Harbin Aoya Health Management Co., Ltd. income,Genetic testing income 63,705.69 Beijing Yinxin Changyuan Technology Co., Ltd. Physical examination income 61,090.70 73,171.50 Pizhou Ciming Health Examination Management Physical examination income Co., Ltd. 59,594.34 Baisheng (Shenzhen) Medical Equipment Co., Physical examination income Ltd. 50,623.71 Panzhihua Ciming Health Examination Physical examination income Management Co., Ltd. 44,009.42 Professional technical service Xiamen Yincheng Meinian Onehealth income,Consulting service Management Co., Ltd. 35,372.82 income Wuxi Meizhao Outpatient Co., Ltd. Genetic testing income 34,578.30

Perfect (China) Co., Ltd. Physical examination income 30,794.40 36,627.00

Guizhou Jizhong Health Management Co., Ltd. Physical examination income 29,520.00 Financing lease Changsha Meizhao Medical Management Co., income,Consulting service Ltd. 24,547.13 income Shandong Wohua Pharmaceutical Technology Physical examination income Co., Ltd. 22,531.00 Physical examination Fuzhou Ciming Aoya Health Examination Center income,Financing lease Co., Ltd. income,Consulting service 21,972.01 income Shanghai Guosheng Capital Management Co., Physical examination income Ltd. 21,378.00

199 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Related party Related party transactions Current year Prior year Financing lease Tianjin Ciming Aoya Hospital Management income,Consulting service Consulting Co., Ltd. 16,985.04 4,116,184.80 income Meiwei (Guangzhou) Oral Health Medical Physical examination income Investment Co., Ltd. 16,486.00 Shanghai Elephant Medical Health Technology Physical examination income Co., Ltd. 15,973.00 51,800.00 Chengdu Aidi Eye Hospital Co., Ltd. Physical examination income 14,702.00

Cixin (Beijing) Medical Investment Co., Ltd. Physical examination income 12,750.00 Huangshan Meinian Onehealth Consulting Co., Consulting service Ltd. income,Software income 12,023.58 Physical examination Kaifeng Meinian Onehealth Examination income,Financing lease Management Co., Ltd. interest income,Consulting 149,027.37 service income Physical examination Anhui Meixin Health Management Consulting Co., income,Financing lease Ltd. interest income,Consulting 125,584.04 service income Software income,Technical Dongguan Dongcheng Meizhao Health service income and consulting Examination Management Co., Ltd. 722,467.00 service income Software fee,Technical service Taicang Meinian Onehealth Outpatient Co., Ltd. income and consulting service 719,025.47 income Financing lease interest Chongqing Ciming Aoya Health Management Co., income,Consulting service Ltd. 543,028.71 income Financing lease interest Heze Meinian Onehealth Examination income,Consulting service Management Co., Ltd. 25,365.08 income Software service fee Taicang Meinian Onehealth Outpatient Co., Ltd. income,Technical service 700,000.00 income China Europe International Business School Physical examination income 209,575.00 Hangzhou Haozhuo You Medical Data Physical examination income Technology Co., Ltd. 203,318.00 Shanghai Weiyin Information Technology Co., Ltd. Physical examination income 129,584.00

Xuhui Group Co., Ltd. Physical examination income 48,332.00

Shanghai Jiuyi Information Technology Co., Ltd. Physical examination income 23,986.00

Hangzhou Yuanzhi Medical Equipment Co., Ltd. Physical examination income 12,866.00

Lead Technology Co., Ltd. Physical examination income 12,140.00

Qingdao Meiweile Medical Management Co., Ltd. Physical examination income 11,639.00 Shanghai Zhongwei Anjian Venture Capital Physical examination income Management Co., Ltd. 11,563.00 Tongyi Petroleum Chemical Co., Ltd. Physical examination income 4,298.50 Shanghai Jiaotong University Shanghai Institute of Physical examination income Advanced Finance 3,080.00 (2) Related leases

200 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

①The Company as a financial leasing lessor The amount of financing lease Lessee name transactions confirmed this year Wuhan Meinian Onehealth Technology Management Co., Ltd. 32,292,000.00

Shenzhen Aoya Health Management Co., Ltd. 14,070,000.00

Chongqing Meizhao Hospital Management Co., Ltd. 11,935,000.00

Kunming Meizhao Health Management Co., Ltd. 10,810,000.00

Xi'an Meizhao Health Management Co., Ltd. 8,995,000.00

Zhengzhou Meijian Health Management Co., Ltd. 7,090,000.00

Changsha Meizhao Medical Management Co., Ltd. 6,740,000.00

Guyuan Meinian Onehealth Hospital Co., Ltd. 6,030,000.00

Yangzhou Meihao Health Management Co., Ltd. 4,590,000.00

Chengdu Meinian Onehealth Center Onehealth Outpatient Co., Ltd. 3,630,000.00

Nanjing Meilu Outpatient Co., Ltd. 3,320,000.00

Shanghai Meikai Outpatient Co., Ltd. 3,100,000.00

Guangzhou Meizhao Health Management Co., Ltd. 3,000,000.00

Nanjing Meiyi Outpatient Co., Ltd. 2,816,000.00

Tianjin Ciming Aoya Hospital Management Consulting Co., Ltd. 2,535,000.00

Fuyang Meinian Onehealth Examination Management Co., Ltd. 2,374,000.00

Fuzhou Ciming Aoya Health Examination Center Co., Ltd. 2,320,000.00

Shenyang Aoya Hospital Co., Ltd. 2,140,000.00

Mengcheng county Meinian Onehealth Examination Management Co., Ltd. 1,880,000.00

Jinjiang Meinian Onehealth Management Co., Ltd. 1,750,000.00

Tianjin Heping District Meinian Meijia Health Management Co., Ltd. 1,700,000.00

Nan'an Meinian Onehealth Management Co., Ltd. 1,640,000.00

Guangzhou Zengcheng Meinian Health Management Co., Ltd. 1,500,000.00

Xiamen Yincheng Meinian Onehealth Management Co., Ltd. 1,500,000.00

Wuxi Meizhao Outpatient Co., Ltd. 1,500,000.00

Zhuhai Meinian Onehealth & Health Management Co., Ltd. 950,000.00

Shenzhen Yierkang Health Management Co., Ltd. 800,000.00

Dongguan Humen Meinian Onehealth Outpatient Co., Ltd. 386,000.00

Chengdu Jinniu Meinian Onehealth Management Consulting Co., Ltd. 307,000.00

Shenzhen Meiyang Health Management Co., Ltd. 300,000.00

Baoshan Meinian Onehealth Examination Center Co., Ltd. 300,000.00

201 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

The amount of financing lease Lessee name transactions confirmed this year Dalian pulan Meinian Comprehensive Health Outpatient Co., Ltd. 298,000.00

Anshun Ciming Health Examination Management Co., Ltd. 298,000.00 ② The Company as an operating lease lessor Lease income confirmed Lease income recognized Type of leased assets Lessor name in the current period in the same period last year Jinjian Technology Service (Beijing) Co., Equipment 906,705.84 Ltd. ③ The Company acts as the operating lease lessee Lease income confirmed Lease income recognized Lessee name Type of leased assets in the current period in the same period last year Shanghai Bairuisi Enterprise Management 2,551,266.00 Co., Ltd. Housing 2,551,266.00 Shanghai Tianyi Hongfang Enterprise Housing 5,128,268.97 Management Co., Ltd. 3,982,110.35 Shanghai Tianyi Hongfang Property Housing 597,064.09 Management Co., Ltd. 3,753,264.76 Beijing Tianyi Hongfang Investment Housing 2,555,018.02 Management Co., Ltd. 4,944,018.38 (3) Related guarantee ① The Company as a guarantor Whether the Guarantee Guaranteed amount Start date End date guarantee has been completed Shanghai Meixin Financial Leasing Co., Ltd. (Note 1) 294,000,000.00 2016-8-31 2023-11-19 No Shanghai Meixin Financial No Leasing Co., Ltd. (Note 2) 300,000,000.00 2016-11-11 2022-6-11 Shanghai Meixin Financial No Leasing Co., Ltd. (Note 3) 160,000,000.00 2017-5-11 2022-5-10 Shanghai Meixin Financial No Leasing Co., Ltd. (Note 4) 150,000,000.00 2017-9-7 2022-9-7 Shanghai Meixin Financial Leasing Co., Ltd. (Note 5) 30,000,000.00 2018-2-5 2019-2-5 Yes Shanghai Meixin Financial Leasing Co., Ltd. (Note 6) 200,000,000.00 2018-4-13 2023-5-17 No Shanghai Meixin Financial Leasing Co., Ltd. (Note 7) 200,000,000.00 2018-7-25 2022-4-29 No Shanghai Meixin Financial Leasing Co., Ltd. (Note 8) 100,000,000.00 2018-8-22 2019-11-23 No Shanghai Meixin Financial Leasing Co., Ltd. (Note 9) 30,000,000.00 2019-5-21 2020-5-20 No Meinian Onehealth (Note 10) 100,000,000.00 2017-1-17 2019-1-16 Yes

Meinian Onehealth (Note 11) 470,000,000.00 2017-5-26 2023-11-19 No

Meinian Onehealth (Note 12) 47,500,000.00 2017-6-23 2022-6-23 No

Meinian Onehealth (Note 13) 1,200,000,000.00 2017-9-22 2020-9-22 No

202 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Meinian Onehealth (Note 14) 188,000,000.00 2017-10-31 2022-10-30 No

Meinian Onehealth (Note 15) 210,000,000.00 2019-5-20 2020-6-17 No

Meinian Onehealth (Note 16) 100,000,000.00 2018-1-11 2023-1-10 No

Meinian Onehealth (Note 17) 300,000,000.00 2018-1-11 2023-1-10 No

Meinian Onehealth (Note 18) 150,000,000.00 2018-1-26 2021-1-26 Yes

Meinian Onehealth (Note 19) 200,000,000.00 2018-3-26 2019-1-29 Yes

Meinian Onehealth (Note 20) 450,000,000.00 2018-4-27 2021-4-27 No

Meinian Onehealth (Note 21) 390,000,000.00 2018-5-25 2025-5-25 No

Meinian Onehealth (Note 22) 80,000,000.00 2018-10-17 2021-10-16 No

Meinian Onehealth (Note 23) 150,000,000.00 2019-1-25 2022-1-24 No

Meinian Onehealth (Note 24) 150,000,000.00 2019-1-29 2020-1-29 No

Meinian Onehealth (Note 25) 200,000,000.00 2019-2-26 2020-2-25 No

Meinian Onehealth (Note 26) 55,000,000.00 2019-3-26 2020-3-27 No

Meinian Onehealth (Note 27) 7,000,000.00 2019-4-9 2024-3-6 No

Meinian Onehealth (Note 28) 10,000,000.00 2019-4-19 2020-4-18 No

Meinian Onehealth (Note 29) 100,000,000.00 2019-4-26 2020-4-11 No Note 1: In 2016, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, used the accounts receivable as a pledge to borrow from Shanghai Pudong Development Bank Co., Ltd., Shanghai Branch. The Company will provide a maximum guarantee of not more than RMB 294 million for the period from August 31, 2016 to November 19, 2023. The balance of loans as at June 30, 2019 was RMB 293.33294 million. Note 2: In 2016, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, used the accounts receivable as a pledge to borrow from HSBC (China) Co., Ltd. Shanghai Branch. The Company provided a maximum guarantee of not more than RMB 300 million for the period from November 11, 2016 to June 11, 2022. The balance of loans as at June 30, 2019 was RMB 259.6632million. Note 3: In 2017, the Company signed a maximum guarantee contract of RMB 160 million with Standard Chartered Bank (China) Co., Ltd. Shanghai Branch for the subsidiary, Shanghai Meixin Financial Leasing Co., Ltd., for the borrowing from May 11, 2017 to May 10, 2022. The balance of the loan as at June 30, 2019 was 127.3902 million. Note 4: In 2017, the Company signed a maximum guarantee contract of RMB 150 million with Hang Seng Bank (China) Co., Ltd. Shanghai Branch, to guarantee for the subsidiary, Shanghai Meixin Financial Leasing Co., Ltd., for the borrowing from September 7, 2017 to September 7, 2022. The balance of the loan as at June 30, 2019 was RMB 135.0864 million.

203 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Note 5: In 2018, the Company provided guarantee to the subsidiary Shanghai Meixin Financial Leasing Co., Ltd. to the Ningbo Tongshang Bank Co., Ltd. Shanghai Branch for a loan of RMB 29.38 million, with a maximum insured amount of RMB 30 million. The balance of the loan as at June 30, 2019 was RMB 0.00 million. Note 6: In 2018, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, used the accounts receivable as a pledge to borrow from Shanghai Songjiang Sub-branch of China Everbright Bank. The Company provides a maximum guarantee of not more than RMB 200 million from April 13, 2018 to May 17, 2023. The balance of the loan as at June 30, 2019 was RMB 152.5591 million. Note 7: In 2018, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, used the accounts receivable as a pledge to borrow from DBS Bank (China) Co., Ltd. The Company provides a maximum guarantee of not more than RMB 200 million for the period from July 25, 2018 to April 29, 2022. The balance of the loan as at June 30, 2019 was 183.1006 million. Note 8: In 2018, the Company signed a maximum guarantee contract of RMB 100 million with BNP Paribas (China) Co., Ltd., which was signed to provide guarantee for the subsidiary, Shanghai Meixin Financial Leasing Co., Ltd., from August 22, 2018 to November 23, 2019. As at June 30, 2019, the balance of the loan was RMB 74.0315 million. Note 9: In 2019, the Company provided guarantee to the subsidiary Shanghai Meixin Financial Leasing Co., Ltd. to the Ningbo Tongshang Bank Co., Ltd. Shanghai Branch for a loan, with a maximum insured amount of RMB 30 million. The balance of the loan as at June 30, 2019 was RMB 0.20 million. Note 10: In 2017, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Bank of Nanjing Co., Ltd. Shanghai Branch for the loan of RMB 100 million, with a maximum insured amount of RMB 100 million. The balance of the loan as at June 30, 2019 was RMB 0.00 million. Note 11: In 2018 and 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Shanghai Pudong Development Bank Co., Ltd, Shanghai Qingpu Branch, for the loan of RMB 535.00 million, with a maximum insured amount of RMB 470.00 million. The balance of the loan as at June 30, 2019 was RMB 470.00 million. Note 12: In 2017, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Ping An Bank Co., Ltd. Shanghai Branch, for the loan of RMB 47.5 million. The maximum insurance amount is RMB 47.50 million. The balance of the loan as at June 30, 2019 was RMB 23.75 million.

204 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Note 13: In 2018 and 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to China Minsheng Bank Co., Ltd. Shanghai Branch for a total loan of RMB 2.9 billion, with a maximum insured amount of RMB 1.2 billion. The balance of the loan as at June 30, 2019 was RMB 995.00 million. Note 14: In 2017, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Ping An Bank Co., Ltd. Shanghai Branch, for the loan of RMB 188.00 million. The maximum insurance amount is RMB 188.00 million. The balance of the loan as at June 30, 2019 was RMB 131.60 million. Note 15: In 2018 and 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Citi Bank (China) Co., Ltd, Shanghai Branch for a total loan of RMB 400.00 million, with a maximum insured amount of RMB 210.00 million. The balance of the loan as at June 30, 2019 was RMB 200.00 million. Note 16: In 2018, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Ping An Bank Co., Ltd. Shanghai Branch, for the loan of RMB 100.00 million. The balance of the loan as at June 30, 2019 was RMB 90.00 million. Note 17: In 2018, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Ping An Bank Co., Ltd. Shanghai Branch, for the loan of RMB 300.00 million. The balance of the loan as at June 30, 2019 was RMB 270.00 million. Note 18: In 2018, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Shanghai Bank Co., Ltd, Pudong Branch for a total loan of RMB 112.50 million, with a maximum insured amount of RMB 150.00 million. The balance of the loan as at June 30, 2019 was RMB 0.00 million. Note 19: In 2018, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Huaxia Bank Co., Ltd, Shanghai Branch for a total loan of RMB 100.00 million, with a maximum insured amount of RMB 200.00 million. The balance of the loan as at June 30, 2019 was RMB 0.00 million. Note 20: In 2018, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Zhongxin Bank Co., Ltd, Shanghai Branch for a total loan of RMB 600.00 million, with a maximum insured amount of RMB 450.00 million. The balance of the loan as at June 30, 2019 was RMB 300.00 million. Note 21: In 2018 and 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Ping An Bank Co., Ltd. Shanghai Branch, for the loan of RMB 349.42 million. The maximum insurance amount is RMB 390.00 million. The balance of the loan as at June 30, 2019 was RMB 285.60 million.

205 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Note 22: In 2018, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Ping An Bank Co., Ltd. Shanghai Branch, for the loan of RMB 80.00 million.The balance of the loan as at June 30, 2019 was RMB72.00 million. Note 23: In 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Shanghai Songjiang Sub-branch of China Everbright Bank for the loan of RMB 150.00 million, with a maximum insured amount of RMB 150.00 million. The balance of the loan as at December 31, 2018 was RMB 150.00 million. Note 24: In 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Shanghai Bank Co., Ltd, Pudong Branch for a total loan of RMB 149.00 million, with a maximum insured amount of RMB 150.00 million. The balance of the loan as at June 30, 2019 was RMB 149.00 million. Note 25: In 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Industrial Bank Co., Ltd, Shanghai Stock Exchange Branch for a total loan of RMB 200.00 million. The balance of the loan as at June 30, 2019 was RMB 200.00 million. Note 26: In 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to HSBC (China) Co., Ltd, Shanghai Branch for a total loan of RMB 50.00 million, with a maximum insured amount of RMB 55.00 million. The balance of the loan as at June 30, 2019 was RMB 50.00 million. Note 27: In 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Shanghai Songjiang Sub-branch of China Everbright Bank for the loan of RMB 7.00 million. The balance of the loan as at December 31, 2018 was RMB 6.30 million. Note 28: In 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Shanghai Pudong Development Bank Co., Ltd., Shanghai Branch for a total loan of RMB 10.00 million. The balance of the loan as at June 30, 2019 was RMB 10.00 million. Note 29: In 2019, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Dalian Bank Co., Ltd., Shanghai Branch for a total loan of RMB 100.00 million, with a maximum insured amount of RMB 100.00 million. The balance of the loan as at June 30, 2019 was RMB 100.00 million. ② The Company acts as a guarantee Whether the guarantee has Guaranteed amount Guarantor Start date End date been completed

206 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Whether the guarantee has Guaranteed amount Guarantor Start date End date been completed Hainan Meinian Onehealth Hospital Co., Ltd. (Note 1) 1,500,000.00 2017-10-30 2020-10-29 No Sha Qibin (Note 1) 1,500,000.00 2017-10-30 2020-10-29 No

Liu Xiaofeng (Note 1) 1,500,000.00 2017-10-30 2020-10-29 No Hainan Meinian Onehealth Hospital Co., Ltd. (Note 2) 1,200,000.00 2017-12-7 2020-12-6 No Sha Qibin (Note 2) 1,200,000.00 2017-12-7 2020-12-6 No

Liu Xiaofeng (Note 2) 1,200,000.00 2017-12-7 2020-12-6 No

Sha Qibin (Note 3) 19,000,000.00 2018-4-12 2025-4-10 No

Liu Xiaofeng (Note 3) 19,000,000.00 2018-4-12 2025-4-10 No Hainan Liushahe Decoration Engineering Co., Ltd. (Note 3) 19,000,000.00 2018-4-12 2025-4-10 No

Xu Zhaorong (Note 4) 5,500,000.00 2018-10-30 2019-10-28 No

Ren Liping (Note 4) 5,500,000.00 2018-10-30 2019-10-28 No

Wang Yunhua (Note 5) 2,000,000.00 2018-6-5 2019-6-5 Yes

Wang Yunhua (Note 6) 2,000,000.00 2019-5-6 2020-6-11 No Jiaxing SME Guarantee Co., Ltd. (Note 7) 1,000,000.00 2018-2-1 2019-1-31 Yes Jiaxing SME Guarantee Co., Ltd. (Note 8) 1,000,000.00 2018-1-10 2019-1-9 Yes Anhui Nuoyi Health Management Co., Ltd. (Note 9) 5,000,000.00 2018-12-26 2019-12-25 Yes

Duan Chuanjing (Note 9) 5,000,000.00 2018-12-26 2019-12-25 Yes

Liu Xueying (Note 9) 5,000,000.00 2018-12-26 2019-12-25 Yes

Xu Yongjun (Note 10) 2,140,000.00 2017-3-8 2020-3-7 No Note 1: In 2017, Haikou Ciming Health Outpatient (General Partnership), a subsidiary of the Company, borrowed RMB 1.5 million from the China Postal Savings Bank Co., Ltd. Haikou City, South of Haiken Road Branch. Shareholders, Sha Qibin and Liu Xiaofeng, and Hainan Meinian Onehealth Hospital Co., Ltd., a subsidiary of the Company, pledged the store, which is located in A301, 3rd Floor, Building 1, 2, Binjiang Holiday City, No. 362, Binjiang Road, Qiongshan District, Haikou City (ownership certificate No.: Haikou property ownership certificate HF Zi. No. HK454142), to provide joint and several liability guarantee for the loan, the maximum insurance amount is RMB 1.5 million.The balance of the loan as at June 30, 2019 was RMB 0.7295 million. Note 2: In 2017, Haikou Ciming Health Outpatient (General Partnership), a subsidiary of the Company, borrowed RMB 1.2 million from the China Postal Savings Bank Co., Ltd. Haikou

207 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

City, South of Haiken Road Branch. Shareholders, Sha Qibin and Liu Xiaofeng, and Hainan Meinian Onehealth Hospital Co., Ltd., a subsidiary of the Company, pledged the store, which is located in A301, 3rd Floor, Building 1, 2, Binjiang Holiday City, No. 362, Binjiang Road, Qiongshan District, Haikou City (ownership certificate No.: Haikou property ownership certificate HF Zi. No. HK454142), to provide joint and several liability guarantee for the loan, the maximum insurance amount was RMB 1.2 million. The balance of the loan as at June 30, 2019 was RMB 0.6276 million. Note 3: In 2018, Hainan Meinian Onehealth Hospital Co., Ltd., a subsidiary of the Company, signed a fixed asset loan contract with China Postal Savings Bank Co., Ltd. Haikou Branch. Shareholders, Shaqi Bin, Liu Xiaofeng and Hainan Liushahe Decoration Engineering Co., Ltd. provide joint and several liability guarantees, with a maximum insured amount of RMB 190.00 million. The balance of the loan as at June 30, 2019 was RMB 10.6518 million. Note 4: In 2018, Wuxi Huakang Outpatient Co., Ltd., a subsidiary of the Company, borrowed RMB 4.00 million from Agricultural Bank of China Co., Ltd. Wuxi Binhu Branch. Xu Zhaorong and Ren Liping provided guarantees for the loan, with a maximum guarantee amount of RMB 5.50 million. The balance of the loan as at June 30, 2019 was RMB 4.00 million. Note 5: In 2018, Yuxi Meinian Onehealth Industry Co., Ltd., a subsidiary of the Company, signed a loan contract with China Construction Bank Co., Ltd. CCB Yuxi Sub-branch, with Wang Yunhua as the co-borrower. The balance of the loan as at June 30, 2019 was RMB 0.00 million. Note 6: In 2019, Yuxi Meinian Onehealth Industry Co., Ltd., a subsidiary of the Company, signed a loan contract with China Construction Bank Co., Ltd. CCB Yuxi Sub-branch, with Wang Yunhua as the co-borrower. The balance of the loan as at June 30, 2019 was RMB 2.00 million. Note 7: In 2018, Jiaxing Meinian Onehealth Management Co., Ltd., a subsidiary of the Company, signed a loan contract with Jiaxing Bank Science and Technology Sub-branch, which was guaranteed by Jiaxing SME Guarantee Co., Ltd. The balance of the loan as at June 30, 2019 was RMB 0.00 million. Note 8: In 2018, Jiaxing Meinian Onehealth Management Co., Ltd., a subsidiary of the Company, signed a loan contract with Jiaxing Bank Science and Technology Sub-branch, which was guaranteed by Jiaxing SME Guarantee Co., Ltd. The balance of the loan as at June 30, 2019 was RMB 0.00 million. Note 9: In 2018, Hefei Shushan Aino Health Examination Outpatient Department Co., Ltd., a subsidiary of the Company, borrowed RMB 3.00 million from ICBC, Hefei Shushan Branch,

208 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 which was guaranteed by Duan Chuanjing, Liu Xueying and Anhui Nuoyi Healthy Management Co, Ltd, with a maximum insured amount of RMB 5.00 million. The balance of the loan as at June 30, 2019 was RMB 0.00 million. Note 10: In 2019, Jiaxing Meinian Onehealth Management Co., Ltd., a subsidiary of the Company, borrowed RMB 1.50 million from Zhejiang Hecheng Rural Commercial Bank Co. Ltd, Nanhu Branch. Shareholders, Xu Yongjun and he pledged the a store under his name, which is located in Room 7-A and 7-B, Building B, Yuanyang Building, No. 1000, Wwst of Zhonghuan Road, Economic Development District, Xiuzhou District, Jiaxing City (ownership certificate No.: Haikou property ownership certificate (2007) HE Zi. No. 00204808), the maximum insurance amount was RMB 2.14 million. The balance of the loan as at June 30, 2019 was RMB 1.5 million. (4) Remuneration of Key Management Personnel

Item Current year Prior year

Compensation of Key Management Personnel RMB 7.34 million RMB 5.55 million 6. Receivables and Payables of Related Parties (1) Receivable items

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Accounts receivable

Beijing Ciji Network Technology Co., Ltd. 42,547,457.20 910,323.60 54,314,489.44

Jinjian Technology Service (Beijing) Co., Ltd. 8,120,732.51 7,082,732.51 Chengdu Jinniu Meinian Onehealth Management Consulting Co., Ltd. 6,197,092.94 3,384,931.98 Yantai Meinian Onehealth Examination Management Co., Ltd. 5,498,272.01 42,389.78 5,219,118.41 5,419.80 Shanghai Haozhuo Data Service Co., Ltd. 4,876,853.42 74,939.34 179,378.25 Guangzhou Meinian Onehealth Hospital Management Co., Ltd. 4,546,576.45 Xiamen Ciming Health Management Co., Ltd. 3,555,946.80 300,000.00 2,425,486.50 300,000.00 Guangzhou Meinian Onehealth Medical Technology Co., Ltd. 3,371,928.79 75,609.00 Wang Shifang 2,947,943.16 2,947,943.16 2,947,943.16 2,947,943.16 Wuhan Meinian Onehealth Technology Management Co., Ltd. 2,410,299.34 769,844.78 Shenzhen Yierkang Health Management Co., Ltd. 2,305,317.16 584,293.26 29,829.75

Shenzhen Aoya Health Management Co., Ltd. 1,745,617.99 12,506.85 327,269.17 Tianjin Nankai Meizhao Health Examination Center Co., Ltd. 1,500,000.00

209 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Shanghai Jianyi Investment Center (Limited Partnership) 1,250,000.00 Jilin Changyi District Meinian Onehealth Technology Management Co., Ltd. 1,148,156.18 Yixing Meinnian Comprehensive Outpatient Co., Ltd. 1,125,735.60 1,005,197.00 Chengdu Wuhou Meinian Onehealth Outpatient Co., Ltd. 922,417.66 Chengdu Meizhao Outpatient Co., Ltd. 892,696.08 Jiaxing Xinwen Ganfu Equity Investment Partnership (Limited Partnership) 882,191.78 Meizhi Health Management (Beijing) Co., Ltd. 866,123.75 866,123.75

Anxi Meinian Onehealth Management Co., Ltd. 708,760.00 Zhuhai Meinian Onehealth & Health Management Co., Ltd. 707,288.96 43,723.98 Tonglu Meinian Medical Examination Center Co., Ltd. 700,670.00 700,000.00 Dongguan Changan Meinian Health Management Co., Ltd. 700,000.00 700,000.00 Fuzhou Changle District Meici Health Management Co., Ltd. 700,000.00 700,000.00 Shouguang Meinian Onehealth Physical Examination Management Co., Ltd. 700,000.00 700,000.00 Taizhou Meizhao Health Physical Examination Center (general partnership) 687,191.77 Xiamen Yincheng Meinian Onehealth Management Co., Ltd. 448,529.81 730,000.00 Bijie Meinian Onehealth Management Co., Ltd. 437,760.00 Chengdu Meinian Onehealth Center Onehealth Outpatient Co., Ltd. 401,965.55 Luoyang Meinian Onehealth Technology Co., Ltd. 320,086.92 97,950.75 319,682.67 34,530.45

Harbin Aoya Health Management Co., Ltd. 309,567.00

Huai'an Ciming Huakang Outpatient Co., Ltd. 309,145.86

Zhangzhou Meinian Onehealth Management Co., Ltd. 200,000.00 500,000.00 Fuzhou Ciming Aoya Health Examination Center Co., Ltd. 187,964.11 495,000.00 Nanning Meiyoukang Health Management Co., Ltd. 165,000.00

Perfect (China) Co., Ltd. 126,975.90 72,805.50 130,582.50 28,134.00

Beijing Yinxin Changyuan Technology Co., Ltd. 110,175.50 31,655.40 432.30

Yinchuan Elephant Doctor Internet Hospital Co., Ltd. 98,611.40 Shanghai Jiaotong University Shanghai Institute of Advanced Finance 51,000.00 15,540.00 51,000.00 14,960.00 Shanghai Elephant Medical Health Technology Co., Ltd. 49,000.00 14,700.00 51,600.00

210 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Shanghai Zhongwei Anjian Venture Capital Management Co., Ltd. 29,788.00 91.20 30,778.00 Maanshan Meinian Onehealth Consulting Co., Ltd. 27,049.63 5,331.15 113,454.34 8,431.13

Lead Technology Co., Ltd. 25,855.00 3,357.00 15,340.00 Panzhihua Ciming Health Examination Management Co., Ltd. 23,858.30 216,808.30 Shanghai Jiuyi Information Technology Co., Ltd. 20,702.00 3,465.00 20,702.00 570.00 Weifang Century Changhe Economic and Trade Co., Ltd. 19,885.00 19,885.00 5,965.50 Beijing Century Changhe Technology Group Co., Ltd. 17,200.00 8,257.90 17,200.00 4,886.85

Shanghai Guosheng Capital Management Co., Ltd. 16,500.00

Huangshan Meinian Onehealth Consulting Co., Ltd. 12,650.00 700,000.00 Pizhou Ciming Health Examination Management Co., Ltd. 12,035.00 Beijing Tianyi Hongfang Investment Management Co., Ltd. 10,344.00 3,030.00 10,344.00 Haining Meinian Health Physical Examination Center Co., Ltd. 1,195,000.00 Guyuan Meinian Onehealth Hospital Co., Ltd. 700,000.00 Zhangjiagang Meinian Onehealth Management Co., Ltd. 700,000.00 Yangzhou Meihao Health Management Co., Ltd. 698,000.00 China Europe International Business School Education Development Foundation 202,432.00 Chongqing Banan Ciming Comprehensive Outpatient Co., Ltd. 178,179.31 Jinjiang Meinian Onehealth Management Co., Ltd. 19,782.00

Total 105,046,918.53 4,588,240.23 89,097,957.71 3,381,102.94

Prepayments:

Xiamen Ciming Health Management Co., Ltd. 12,522,591.37 110,036.11

Nanjing Meiyi Outpatient Co., Ltd. 8,820,688.15 3,011,693.20 Tianjin Heping District Meinian Meijia Health Management Co., Ltd. 5,035,000.00 Shenzhen Yierkang Health Management Co., Ltd. 3,950,749.57 Chengdu Jinniu Meinian Onehealth Management Consulting Co., Ltd. 3,690,107.91 Zhengzhou Meijian Health Management Co., Ltd. 3,684,443.10 Shanghai Elephant Medical Health Technology Co., Ltd. 2,744,169.90 Chengdu Wuhou Meinian Onehealth Outpatient Co., Ltd. 2,426,900.98 Zhongguancun Meinian Health Industry Research 2,250,000.00

211 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Institute

Guangzhou Meinian Onehealth Hospital Management Co., Ltd. 2,060,833.45 Wuhan Meinian Onehealth Technology Management Co., Ltd. 2,022,801.41 Tonglu Meinian Medical Examination Center Co., Ltd. 2,000,000.00

Chengdu Meizhao Outpatient Co., Ltd. 1,244,641.50

Beijing Wandong Medical Technology Co., Ltd. 990,966.70

Shenzhen Meiyang Health Management Co., Ltd. 383,940.15 Tianjin Nankai District Mei'ao Dental Outpatient Co., Ltd. 193,947.00 Shanghai Jiuyi Information Technology Co., Ltd. 130,135.50 130,135.50

Shanghai Meizhao Wuyuan Outpatient Co., Ltd. 79,195.00

Nanchang Meiwei Dental Outpatient Co., Ltd. 55,201.00

Xi'an Yinggu Network Technology Co., Ltd. 238,888.93 Beijing Tianyi Hongfang Investment Management Co., Ltd. 146,390.16 Deyang Weile Xinqiao Dental Outpatient Co., Ltd. 96,094.11

Hangzhou Yidian Information Technology Co., Ltd. 80,000.00 Shanghai Meiwei Dental Care Management Group Co., Ltd. 53,831.19 Total 54,286,312.69 3,867,069.20

Other receivables:

Nanjing Aoya Health Management Co., Ltd. 6,650,000.00

Shanghai Haozhuo Data Service Co., Ltd. 5,772,660.80 10,135.80 Yantai Meinian Onehealth Examination Management Co., Ltd. 4,426,319.90 Jiangsu Huakang Vocational Health Consulting Co., Ltd. 4,140,000.00 3,653,727.65 Chongqing Meiyi Health Management Co., Ltd. 3,094,607.78

Leshan Ciming Health Examination Service Co., Ltd. 2,752,819.72 137,281.95

Chengdu Meizhao Outpatient Co., Ltd. 2,131,884.00

Nanning Meiyoukang Health Management Co., Ltd. 1,686,528.35 Chengdu Wuhou Meinian Onehealth Outpatient Co., Ltd. 1,645,721.37 Beijing Tianyi Hongfang Investment Management Co., Ltd. 1,530,671.00 100,546.50 Nanjing Meiyi Outpatient Co., Ltd. 1,257,796.00 377,338.80

212 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Shanghai Bairuisi Enterprise Management Co., Ltd. 1,189,742.78 232,940.00

Wang Shifang 1,188,070.00 1,188,070.00 2,587,300.00 2,587,300.00 Shanghai Tianyi Hongfang Enterprise Management Co., Ltd. 1,061,297.37 191,932.69 1,061,297.37 Chengdu Jinniu Meinian Onehealth Management Consulting Co., Ltd. 768,435.77 Fuzhou Ciming Aoya Health Examination Center Co., Ltd. 700,000.00 Guangdong Meiciaoya Health Management Co., Ltd. 300,000.00 Jilin Changyi District Meinian Onehealth Technology Management Co., Ltd. 270,000.00 Shanghai Tianyi Hongfang Property Management Co., Ltd. 212,689.90 213,986.09 Xiamen Ciming Health Management Co., Ltd. 122,089.13 172,028.00

Deyang Weile Xinqiao Dental Outpatient Co., Ltd. 97,535.52

Yinchuan Elephant Doctor Internet Hospital Co., Ltd. 65,990.00 15,000.00 Hangzhou Aidi Kang Medical Testing Center Co., Ltd. and its subsidiaries 43,506.70 Shanghai Zunran Hospital Co., Ltd. 10,000.00 3,000.00 10,000.00 Chongqing Ciming Aoya Health Management Co., Ltd. 68,155.79 Total 41,118,366.09 1,886,023.79 8,136,716.85 2,587,300.00

Long-term accounts receivables: Wuhan Meinian Onehealth Technology Management Co., Ltd. 36,337,890.00 972,400.00 Chongqing Meizhao Hospital Management Co., Ltd. 20,627,810.00 9,997,500.00

Kunming Meizhao Health Management Co., Ltd. 19,063,562.00 9,444,600.00

Xi'an Meizhao Health Management Co., Ltd. 18,392,492.00 9,540,000.00

Shenyang Aoya Hospital Co., Ltd. 18,330,743.00 18,594,377.00

Shenzhen Aoya Health Management Co., Ltd. 16,181,106.00 1,742,569.00

Shandong Meiming Aoya Health Consulting Co., Ltd. 15,966,534.00 17,825,538.00

Guangzhou Meizhao Health Management Co., Ltd. 15,847,593.00 13,994,517.00

Shenzhen Meizhao Health Management Co., Ltd. 15,825,431.00 18,240,553.00

Chengdu Meizhao Outpatient Co., Ltd. 15,442,631.00 17,887,835.00

Shanghai Meikai Outpatient Co., Ltd. 13,194,934.00 12,400,028.00 Dongguan Humen Meinian Onehealth Outpatient Co., Ltd. 11,729,242.00 13,302,748.00 Putian Meinian Onehealth Management Co., Ltd. 11,719,274.00 13,754,498.00

213 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Shenzhen Yierkang Health Management Co., Ltd. 10,243,347.00 12,322,905.00 Qingdao Meinian Health Technology Health Management Co., Ltd. 10,178,884.00 12,626,896.00 Guangzhou Meinian Onehealth Medical Technology Co., Ltd. 9,734,783.00 12,919,475.00 Zhengzhou Meijian Health Management Co., Ltd. 8,958,823.00 3,243,915.00 Xianning Meinian Onehealth Examination Management Co., Ltd. 8,957,587.00 10,466,035.00 Dalian pulandian Meinian Comprehensive Health Outpatient Co., Ltd. 8,943,813.00 10,641,828.00 Yunnan Ciming Health Service Co., Ltd. 8,699,389.00 10,351,975.00 Wenshan Meinian Onehealth Examination Center Co., Ltd. 8,393,316.00 9,871,260.00 Changsha Meizhao Medical Management Co., Ltd. 8,311,364.00 Baoshan Meinian Onehealth Examination Center Co., Ltd. 8,310,940.00 9,521,312.00 Shaoxing Meizhao Out-patient Medical Co., Ltd. 8,098,770.00 9,448,565.00 Chengdu Meinian Onehealth Center Onehealth Outpatient Co., Ltd. 7,988,528.82 5,100,829.00 Guangzhou Zengcheng Meinian Health Management Co., Ltd. 7,484,118.00 7,152,468.00 Shaoxing Meinian Outpatient Co., Ltd. 7,348,284.00 6,773,271.00 Chengdu Jinniu Meinian Onehealth Management Consulting Co., Ltd. 6,859,683.00 7,842,517.00 Tianjin Ciming Aoya Hospital Management Consulting Co., Ltd. 6,571,762.90 Nanjing Meiyi Outpatient Co., Ltd. 6,466,913.00 3,979,589.00

Shenzhen Meiyang Health Management Co., Ltd. 6,151,633.00 6,843,208.00 Guangzhou Huadu District Meinian Onehealth Management Co., Ltd. 6,134,316.00 7,152,468.00 Jinan Meinian Onehealth Technology Co., Ltd. 6,126,679.00 7,019,641.00

Guyuan Meinian Onehealth Hospital Co., Ltd. 6,019,656.00 Fuyang Meinian Onehealth Examination Management Co., Ltd. 5,946,636.00 4,601,542.00 Nanjing Meilu Outpatient Co., Ltd. 5,943,526.00 3,141,745.00 Jilin Changyi District Meinian Onehealth Technology Management Co., Ltd. 5,854,885.00 6,943,249.00 Jinjiang Meinian Onehealth Management Co., Ltd. 5,851,760.00 5,194,454.00

Nan'an Meinian Onehealth Management Co., Ltd. 5,733,093.00 5,160,147.00 Zhengzhou Meizhao Health Medical Management Co., Ltd. 5,434,744.00 6,211,136.00 Changchun Meijian Health Technology Co., Ltd. 5,063,168.00 5,980,484.00

214 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Yangzhou Meihao Health Management Co., Ltd. 4,934,658.00 Chengdu Wuhou Meinian Onehealth Outpatient Co., Ltd. 4,863,489.25 5,510,029.00 Wuxi Ciming Aoya Outpatient Co., Ltd. 4,474,343.00 5,381,141.00

Shanghai Meizhao Wuyuan Outpatient Co., Ltd. 4,275,351.00 4,678,686.00

Tianjin Binhai New Area Ciai Outpatient Co., Ltd. 4,021,972.00 4,705,600.00 Anshun Ciming Health Examination Management Co., Ltd. 3,986,630.00 Taizhou Meizhao Health Physical Examination Center (general partnership) 3,793,246.00 4,322,122.00 Tianjin Heping District Meinian Meijia Health Management Co., Ltd. 3,773,158.00 2,561,421.00 Foshan Wanda Meizhao Health Management Co., Ltd. 3,005,100.00 3,561,600.00 Wuhan Meici Aoya Health Management Co., Ltd. 2,925,000.00 Zhuhai Meinian Onehealth & Health Management Co., Ltd. 2,811,806.00 3,781,807.00 Mengcheng county Meinian Onehealth Examination Management Co., Ltd. 2,133,930.00 Wuhan Meizhao Health Management Co., Ltd. 2,075,776.50 3,261,934.50

Leshan Ciming Health Examination Service Co., Ltd. 1,912,736.00 2,322,608.00

Harbin Aoya Health Management Co., Ltd. 1,851,939.00 Fuzhou Ciming Aoya Health Examination Center Co., Ltd. 1,793,190.00 Dongying Meinian Onehealth Co., Ltd. 1,729,923.00 2,528,349.00 Guangzhou Meinian Onehealth Hospital Management Co., Ltd. 1,700,480.00 2,062,754.00 Xiamen Yincheng Meinian Onehealth Management Co., Ltd. 1,650,428.00 Guangdong Meiciaoya Health Management Co., Ltd. 1,485,786.00 1,803,190.00 Weihai Guoji Meinian Onehealth Examination Center Co., Ltd 909,454.00 1,329,202.00 Wuxi Meizhao Outpatient Co., Ltd. 778,125.00

Huai'an Ciming Huakang Outpatient Co., Ltd. 269,392.00 370,414.00

Maanshan Meinian Onehealth Consulting Co., Ltd. 183,118.00 586,123.00 Chongqing Ciming Aoya Health Management Co., Ltd. 10,749,546.00 Zhangzhou Meinian Onehealth Hospital Co., Ltd. 7,108,944.00

Enshi Meinian Onehealth Management Co., Ltd. 6,799,920.00 Haining Meinian Health Physical Examination Center Co., Ltd. 5,403,594.00 Total 495,808,674.47 427,037,061.50

215 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

(2) Payable items

Items Closing balance Opening balance

Account payable: Hangzhou Aidi Kang Medical Testing Center Co., Ltd. and its subsidiaries 44,810,571.51 23,725,125.19 Shenzhen Aoya Health Management Co., Ltd. 9,788,707.48 Qingdao Meinian Health Technology Health Management Co., Ltd. 3,806,658.50 206,808.75 Beijing Tianyi Hongfang Investment Management Co., Ltd. 3,435,481.56 Shanghai Meikai Outpatient Co., Ltd. 2,537,571.90

Jinan Meinian Onehealth Technology Co., Ltd. 2,224,279.34 Fuyang Meinian Onehealth Examination Management Co., Ltd. 2,205,107.47 490,370.40 Shanghai Tianyi Hongfang Enterprise Management Co., Ltd. 2,082,486.10 2,337,639.21 Zhuhai Meinian Onehealth & Health Management Co., Ltd. 1,589,510.45 1,031,687.82 Yantai Meinian Onehealth Examination Management Co., Ltd. 1,319,131.05 1,214,238.30 Guangzhou Meinian Onehealth Medical Technology Co., Ltd. 1,236,019.52 923,944.80 Nanjing Meilu Outpatient Co., Ltd. 955,994.10

Beijing Ciji Network Technology Co., Ltd. 948,002.41 2,070,571.83 Jilin Changyi District Meinian Onehealth Technology Management Co., Ltd. 924,779.49 Shanghai Bairuisi Enterprise Management Co., Ltd. 734,231.00 2,124,055.00

Luoyang Meinian Onehealth Technology Co., Ltd. 647,709.78 673,454.93

Maanshan Meinian Onehealth Consulting Co., Ltd. 594,509.58 630,490.15 Shanghai Tianyi Hongfang Property Management Co., Ltd. 519,979.43 121,054.31 Weihai Guoji Meinian Onehealth Examination Center Co., Ltd 484,193.30 417,233.55 Taizhou Meizhao Health Physical Examination Center (general partnership) 468,792.71 332,495.12 Yinchuan Elephant Doctor Internet Hospital Co., Ltd. 424,686.39 539,792.70

Xi'an Meizhao Health Management Co., Ltd. 346,000.00

Dongguan Humen Meinian Onehealth Outpatient Co., Ltd. 325,917.59 363,427.70 Shanghai Meiwei Dental Care Management Group Co., Ltd. 316,780.85 Changchun Meijian Health Technology Co., Ltd. 231,109.50

Shenzhen Meizhao Health Management Co., Ltd. 228,922.60 482,189.60 Anshun Ciming Health Examination Management Co., Ltd. 200,203.84 Dongying Meinian Onehealth Co., Ltd. 172,231.25 86,953.50

216 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Closing balance Opening balance Mengcheng county Meinian Onehealth Examination Management Co., Ltd. 164,818.41 223,543.90 Guangdong Meiciaoya Health Management Co., Ltd. 138,516.07 Zhengzhou Meizhao Health Medical Management Co., Ltd. 83,183.00 39,774.00 Chengdu Meinian Onehealth Center Onehealth Outpatient Co., Ltd. 61,009.86 15,903.00 Shanghai Haozhuo Data Service Co., Ltd. 59,096.59 192,438.59 Guangzhou Huadu District Meinian Onehealth Management Co., Ltd. 44,260.00 Xianning Meinian Onehealth Examination Management Co., Ltd. 43,805.40 Leshan Ciming Health Examination Service Co., Ltd. 43,170.00

Wuhan Meizhao Health Management Co., Ltd. 37,610.00 49,930.43

Shaoxing Meizhao Out-patient Medical Co., Ltd. 32,478.00 18,318.00

Jinjiang Meinian Onehealth Management Co., Ltd. 31,279.50

Yixing Meinnian Comprehensive Outpatient Co., Ltd. 30,845.25 170,145.25

Enshi Meinian Onehealth Management Co., Ltd. 28,515.95

Guangzhou Meizhao Health Management Co., Ltd. 20,296.00

Huai'an Ciming Huakang Outpatient Co., Ltd. 17,631.60

Wuxi Ciming Aoya Outpatient Co., Ltd. 17,503.53

Baoshan Meinian Onehealth Examination Center Co., Ltd. 11,007.90 50,311.50 Chengdu Jinniu Meinian Onehealth Management Consulting Co., Ltd. 2,068,822.87 Chongqing Ciming Aoya Health Management Co., Ltd. 1,633,146.81

Shanghai Elephant Medical Health Technology Co., Ltd. 858,777.90

Chengdu Wuhou Meinian Onehealth Outpatient Co., Ltd. 587,103.35

Zhengzhou Meijian Health Management Co., Ltd. 383,253.75 Shanghai Baozhongtang Lushan Traditional Chinese Medicine Outpatient Co., Ltd. 160,000.00 Wuhan Meinian Onehealth Technology Management Co., Ltd. 140,563.40 Shandong Wanshu Trading Co., Ltd. 53,687.50 Chongqing Banan Ciming Comprehensive Outpatient Co., Ltd. 31,786.45 Guangzhou Meinian Onehealth Hospital Management Co., Ltd. 19,488.60 Total 84,424,595.76 44,468,528.16

Advanced from customers:

Shenyang Aoya Hospital Co., Ltd. 4,886,318.94 4,996,963.67

217 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Closing balance Opening balance

Chongqing Meizhao Hospital Management Co., Ltd. 4,256,283.80 1,715,235.86

Shandong Meiming Aoya Health Consulting Co., Ltd. 4,002,437.78 4,440,884.96

Guangzhou Meizhao Health Management Co., Ltd. 3,424,818.58 3,245,787.63

Kunming Meizhao Health Management Co., Ltd. 3,294,841.30 1,649,283.97

Xi'an Meizhao Health Management Co., Ltd. 3,189,589.73 1,665,943.40

Shenzhen Meizhao Health Management Co., Ltd. 2,816,560.08 3,414,144.86

Shanghai Meikai Outpatient Co., Ltd. 2,635,016.75 2,521,900.21

Putian Meinian Onehealth Management Co., Ltd. 2,535,041.82 3,016,457.78 Dalian pulan Meinian Comprehensive Health Outpatient Co., Ltd. 2,038,658.89 2,000,914.16 Wenshan Meinian Onehealth Examination Center Co., Ltd. 1,793,562.21 2,014,395.33 Yunnan Ciming Health Service Co., Ltd. 1,786,151.51 2,064,872.03

Dongguan Humen Meinian Onehealth Outpatient Co., Ltd. 1,759,619.62 1,771,065.40 Xianning Meinian Onehealth Examination Management Co., Ltd. 1,709,243.01 2,184,148.57 Shaoxing Meinian Outpatient Co., Ltd. 1,647,304.79 181,507.31

Baoshan Meinian Onehealth Examination Center Co., Ltd. 1,641,902.93 1,806,615.94

Zhengzhou Meijian Health Management Co., Ltd. 1,580,425.66 596,583.39

Changchun Meijian Health Technology Co., Ltd. 1,471,119.34 1,367,858.66

Shaoxing Meizhao Out-patient Medical Co., Ltd. 1,390,832.40 1,665,255.98 Qingdao Meinian Health Technology Health Management Co., Ltd. 1,367,317.31 1,857,595.69 Nanjing Meiyi Outpatient Co., Ltd. 1,335,843.85 936,606.97

Changsha Meizhao Medical Management Co., Ltd. 1,330,612.26

Nanjing Meikai Outpatient Co., Ltd. 1,292,102.99 538,982.12

Shanghai Meizhao Wuyuan Outpatient Co., Ltd. 1,028,288.18 1,165,100.02

Tianjin Binhai New Area Ciai Outpatient Co., Ltd. 958,518.20 1,095,346.50

Nan'an Meinian Onehealth Management Co., Ltd. 891,810.96 813,048.54 Zhengzhou Meizhao Health Medical Management Co., Ltd. 888,554.20 1,065,362.16 Anshun Ciming Health Examination Management Co., Ltd. 702,900.95 Wuxi Ciming Aoya Outpatient Co., Ltd. 664,755.67 819,442.45 Tianjin Heping District Meinian Meijia Health Management Co., Ltd. 662,547.79 41,903.99 Jinan Meinian Onehealth Technology Co., Ltd. 612,559.44 1,127,978.88

Shenzhen Meiyang Health Management Co., Ltd. 603,921.95 1,548,965.61

218 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Closing balance Opening balance Guangzhou Huadu District Meinian Onehealth Management Co., Ltd. 546,070.66 1,275,446.02 Yangzhou Meihao Health Management Co., Ltd. 541,682.08

Foshan Wanda Meizhao Health Management Co., Ltd. 508,378.49 617,974.53 Tianjin Ciming Aoya Hospital Management Consulting Co., Ltd. 498,449.06 Fuyang Meinian Onehealth Examination Management Co., Ltd. 455,298.21 300,756.23 Guangzhou Zengcheng Meinian Health Management Co., Ltd. 368,888.25 736,653.02 Mengcheng county Meinian Onehealth Examination Management Co., Ltd. 353,893.68 Dongying Meinian Onehealth Co., Ltd. 340,352.20 472,748.70

Guyuan Meinian Onehealth Hospital Co., Ltd. 330,557.60

Nanjing Baozhongtang Medical Technology Co., Ltd. 299,612.00

Leshan Ciming Health Examination Service Co., Ltd. 299,503.47 377,650.69

Wuhan Meizhao Health Management Co., Ltd. 201,298.22 802,096.09

Jinjiang Meinian Onehealth Management Co., Ltd. 160,126.60

Guangdong Meiciaoya Health Management Co., Ltd. 131,770.72 307,035.89

Liangpin Shop Co., Ltd. 68,577.50

Houma Meinian Onehealth Management Co., Ltd. 45,000.00 Weihai Guoji Meinian Onehealth Examination Center Co., Ltd 40,481.36 158,495.93 Cixin (Beijing) Medical Investment Co., Ltd. 38,060.00

Qingdao Meiweile Medical Management Co., Ltd. 34,174.00 18,949.00 Shanghai Meiwei Dental Care Management Group Co., Ltd. 19,155.00 36,635.00 Baisheng (Shenzhen) Medical Equipment Co., Ltd. 10,942.40

Chengdu Meizhao Outpatient Co., Ltd. 3,793,933.15 Jilin Changyi District Meinian Onehealth Technology Management Co., Ltd. 1,834,531.66 Guangzhou Meinian Onehealth Medical Technology Co., Ltd. 1,723,303.09 Enshi Meinian Onehealth Management Co., Ltd. 1,432,478.40

Zhangzhou Meinian Onehealth Hospital Co., Ltd. 727,395.18

Chengdu Wuhou Meinian Onehealth Outpatient Co., Ltd. 614,859.47 Guangzhou Meinian Onehealth Hospital Management Co., Ltd. 357,930.66 Taizhou Meizhao Health Physical Examination Center (general partnership) 200,817.33 Chengdu Meinian Onehealth Center Onehealth Outpatient Co., Ltd. 194,323.47

219 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Closing balance Opening balance

Huai'an Ciming Huakang Outpatient Co., Ltd. 58,764.32

Pizhou Ciming Health Examination Management Co., Ltd. 26,945.00

Tongyi Petroleum Chemical Co., Ltd. 13,233.75

Chongqing Ciming Aoya Health Management Co., Ltd. 11,844.81

Total 65,491,734.39 69,424,953.43

Other receivables:

Beijing Wandong Medical Technology Co., Ltd. 5,855,200.00 1,033,600.00

Shenzhen Yierkang Health Management Co., Ltd. 4,684,911.42 734,161.85

Shanghai Elephant Medical Health Technology Co., Ltd. 1,293,513.81 893,686.31 Zhuhai Meinian Onehealth & Health Management Co., Ltd. 1,051,863.87 308,317.00 Changsha Meizhao Medical Management Co., Ltd. 958,117.64

Shandong Wanshu Trading Co., Ltd. 921,600.00

Wuxi Ciming Aoya Outpatient Co., Ltd. 681,000.00 Hangzhou Aidi Kang Medical Testing Center Co., Ltd. and its subsidiaries 674,275.00 Guangzhou Meinian Onehealth Medical Technology Co., Ltd. 393,400.00 219,872.00 Shenzhen Meiyang Health Management Co., Ltd. 290,648.15

Tianjin Meiweile Health Management Co., Ltd. 184,482.43 184,482.43 Taizhou Meizhao Health Physical Examination Center (general partnership) 125,656.00 90,740.00 Shanghai Meiwei Dental Care Management Group Co., Ltd. 100,000.00 100,000.00 Weihai International Meinian Onehealth Examination Center Co., Ltd 60,871.00 46,621.00 Huaihua Meinian Onehealth Medical Service Co., Ltd. 40,000.00 40,000.00 Xiamen Yincheng Meinian Onehealth Management Co., Ltd. 30,000.00 30,000.00 Shaoxing Meinian Outpatient Co., Ltd. 30,000.00

Maanshan Meinian Onehealth Consulting Co., Ltd. 28,411.00 24,924.00 Chengdu Meinian Onehealth Center Onehealth Outpatient Co., Ltd. 23,032.45 Luoyang Meinian Onehealth Technology Co., Ltd. 21,998.00 24,932.00 Beijing Tianyi Hongfang Investment Management Co., Ltd. 2,033,270.08 Zhengzhou Meijian Health Management Co., Ltd. 457,656.37 Haining Meinian Health Physical Examination Center Co., Ltd. 30,000.00 Xi'an Yinggu Network Technology Co., Ltd. 29,999.97

220 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Closing balance Opening balance

Hangzhou Yidian Information Technology Co., Ltd. 20,000.00 Chongqing Banan Ciming Comprehensive Outpatient Co., Ltd. 17,064.70 Shandong Meiming Aoya Health Consulting Co., Ltd. 13,473.00 Yantai Meinian Onehealth Examination Management Co., Ltd. 51,955.00 Total 17,448,980.77 6,384,755.71

XII. Events after the Balance Sheet Date 1. Important non-adjustment items (1) Capital commitment

Items Closing balance Opening balance Signed but not yet confirmed in the financial statements

- Foreign investment commitment 384,897,900.00 375,220,500.00

Total 384,897,900.00 375,220,500.00 (2) Operating lease commitment As of the balance sheet date, the irrevocable operating lease contracts signed by the Company are as follows:

Items Closing balance Opening balance

Minimum lease payment for an irrevocable operating lease: 1st year after balance sheet date 700,693,759.55 686,482,298.79

2nd year after balance sheet date 626,707,303.21 627,248,435.98

3rd year after balance sheet date 566,516,964.82 562,149,443.21

Subsequent years 2,038,925,904.54 2,100,343,268.49

Total 3,932,843,932.12 3,976,223,446.47 2. Contingency (1) Contingent liabilities of unresolved litigation and arbitration and the impact in finance a. The dispute case of joint infringement of business secret of iKang Guobin Physical Examination Management Group Co., Ltd. (hereinafter referred to as “iKang Guobin”) charging 5 defendants including Meinian Onehealth and Guangzhou Meinian Medical Clinic Co., Ltd. The litigation claims: To order the defendants to immediately stop the act of infringement of business secret of the plaintiff; order the defendants to jointly compensate for the economic loss of RMB

221 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

50,000,000; order the defendants to bear all the litigation fees and reasonable fees of the plaintiff incurred from the investigation and stopping of infringement action. Beijing Intellectual Property Court gave the final judgment on the jurisdiction dissent and judged that Chaoyang Court would continue to try the case. The plaintiff iKang Guobin submitted the application for nolle prosequi on December 28, 2017. Chaoyang Court issued Civil Judgment (2016) J 0105 MC No. 6716 and approved nolle prosequi. After the withdrawal of the case, iKang Guobin filed a lawsuit with the Shanghai Pudong Court, and the Shanghai Pudong Court filed the case on January 17, 2018. After receiving the subpoena, U.S. Health sent a dispute to the Shanghai Pudong Court on the jurisdiction of the case, arguing that the original infringement was declared not in Shanghai and in Guangzhou, the application was transferred to Guangzhou Intermediate. The People's Court heard that the Shanghai Pudong Court rejected the defendant's US Health Day's objection to the jurisdiction of the case. Subsequently, the Guangzhou Mei Nian Clinic opened an appeal on December 19, 2018, appealing to the Shanghai Intellectual Property Court, and the Shanghai Intellectual Property Court dismissed the appeal and upheld the original ruling. On April 15, 2019, the case was held in the Pudong Court. At present, the court has arranged for the case to open on October 11, 2019. The Company is actively preparing for the response, but the case response procedure has just started, so it is impossible to estimate the impact of this lawsuit on the Company's current profit and future profits. ② IKang Health Technology (Beijing) Co., Ltd. v. the four defendants, including Mei Nian Da Health, Shanghai Meidong Software Development Co., Ltd. and Wang Haifeng, jointly infringed computer software copyright disputes. The lawsuit requested: the defendant immediately stopped infringing the plaintiff’s intellectual property rights. The act of adjudicating the defendant jointly compensated the plaintiff for economic losses of RMB 53 million; the defendant was responsible for all litigation costs in this case. On December 3, 2016, the evidence exchange was carried out, and on January 9, 2017, the exchange of confidential evidence was carried out. On June 14, 2017, the court entrusted Beijing Guochuang Dingcheng Intellectual Property Judicial Appraisal Center to carry out the software provided by the parties. On April 28, 2018, the appraisal agency made an appraisal opinion on the software involved, and the details were confidential. On June 8, 2018, around

222 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30 the appraisal opinion, the upper court organized the parties to conduct the current exchange of evidence. On August 21, 2018, after Wang Haifeng applied, the court began to entrust the appraisal agency to carry out supplementary judicial appraisal. On March 21, 2019, the appraisal agency made additional appraisal opinions on the software involved, and the details were confidential. After the case, the pre-trial meeting, evidence exchange and trial were held on May 10, 2019, May 22, 2019 and July 30, 2019. At present, the Company is actively responding to the lawsuit, but because the case is still in the first-instance trial stage, it is temporarily impossible to estimate the impact of the lawsuit on the Company's current profit and future profit. (2) Contingent liabilities of liability security provided for other organizations and the financial influence The Company provided security for the financial leasing agreement signed between the following company and De Lage Landen Financial Leasing (China) Co., Ltd. As at the reporting date, there are no breach:

Guaranteed amount (RMB Name of guaranteed company Term of guarantee ‘0,000)

Baotou Meinian Onehealth Aiputuo Integrated Clinic Co., Ltd. 120.00 60 months

Linhai Meinian Risheng Hospital Co., Ltd. 144.00 60 months The Company provided security for the financial leasing agreement signed between the following company and De Lage Landen Financial Leasing (China) Co., Ltd. As at the reporting date, there are no breach: Amount of leasing (RMB Name of the first lessee Term of leasing ‘0,000) Yantai Meinian OnePhysical Examination Management Co., Ltd. 110.86 60 months (3) Contingent liabilities related to investment in joint ventures or associations. Refer to “Note VIII. Equity in Associated Enterprise”.

XII. Events after the Balance Sheet Date 1. Important Non-adjustment Items (1) Important non-adjustment items Reason for failing to Item Contents Influence on financial conditions and operating results estimate the influence In 2019, interest is expected to be $11.63 million. According Due to exchange rate The Company issued Issuance of to the central exchange rate of RMB exchange rate in the fluctuations, it is a S-rule senior US stocks and inter-bank foreign exchange market on March 29, 2019: impossible to dollar debt of RMB bonds 6.7335 RMB to 1 USD, it is estimated that the total profit for accurately predict the 200 million the year will be RMB 78.31 million. impact on total profit.

223 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

2. Profit Distribution On April 25, 2019 and May 17, 2019, with the approval of the 6th meeting of the 7th Board of Directors and the 2018 Annual General Meeting of Shareholders, the total share capital of the company as of the 2018 profit distribution equity registration date was 3,106,073,126.00 shares (deducted Based on the reduction of 15,493,830 shares of the Company, the Company will distribute a cash dividend of RMB 0.53 (including tax) for every 10 shares of undistributed profits to all shareholders. The total cash dividend will be RMB 165,092,877.67 (including tax); The number of shares will increase by 2 shares, and the total number of shares will be increased by 621,214,625 shares. After the increase, the total share capital of the Company will increase to 3,742,781,581 shares. The 2018 annual profit distribution was completed on July 10, 2019.

224 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

XIII. Other Important Events Information of Divisions (1) Identifying reportable segments and accounting policies According to the internal organizational structure, management requirements and internal reporting system of the Company, the Company operational business is divided into 8 operational segments. The management assesses the operational achievements of the segments regularly to determine the resource for distribution and the performance evaluation. Based on the operational segments, the Company sets 8 reporting segments including Northeast Area, Eastern China Area, Northern China Area, South Central Area (Central China Area), Northwest Area, Southwest Area, and Southern China Area. The reporting segments are determined according to the management demand and geographic location of the Company. The information of reporting segments is disclosed in the accounting policy and measurement standard adopted in the report to the management of the segments. The measurement basis is in line with the accounting and measurement basis for financial statement preparation. (2) Financial information of reporting segments as at June 30, 2018 / January to June, 2019. (Unit: RMB 10,000) Northern China Eastern China South China Central China Offset among Item Northeast Area Northwest Area Southwest Area Oversea Total Area Area Area Area divisions Main 25,003.04 122,772.05 120,734.53 32,353.98 38,801.70 17,508.20 36,489.73 -29,557.15 364,106.07 operating revenue Main 15,403.61 81,341.84 73,224.13 23,710.48 27,443.63 12,621.47 25,505.04 -24,833.67 234,416.53 operating costs Total assets 118,648.30 495,847.07 2,551,875.00 291,074.38 208,975.68 68,678.31 206,598.60 161,703.52 -2,363,155.90 1,740,244.95 Total 77,955.21 261,385.47 1,172,023.74 226,887.28 147,863.98 49,512.00 147,827.92 139,728.08 -1,178,046.45 1,045,137.24 liabilities Note: The trading information of the divisions of Ciming Health Physical Examination Management Group Co., Ltd. and its subsidiaries is disclosed in North China.

225 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

XV. Main Items of the Financial Statements 1. Account Receivable (1) Disclosed by aging

Aging Closing balance

Within 1 year 41,100,000.00

1 to 2 year

2 to 3 year

3 to 4 year

4 to 5 year

Above 5 years

Subtotal 41,100,000.00

Less: Bad debt provision

Total 41,100,000.00 (2) Disclosed by bad debt provision method

Closing balance

Category Book balance Bad debt provision Book value Amount Proportion (%) Amount Proportion (%) Accounts receivable that are individually significant and for which bad debt provision has been accrued individually Accounts receivable for which bad debt provision has been accrued 41,100,000.00 100.00 41,100,000.00 by portfolio of credit risk features Accounts receivable that are individually insignificant but for which bad debt provision has been accrued individually Total 41,100,000.00 100.00 41,100,000.00 (Cont.)

Opening balance

Category Book balance Bad debt provision Book value Amount Proportion (%) Amount Proportion (%) Accounts receivable that are individually significant and for which bad debt provision has been accrued individually Accounts receivable for which bad debt provision has been accrued 7,200,000.00 100.00 7,200,000.00 by portfolio of credit risk features Accounts receivable that are

226 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Opening balance

Category Book balance Bad debt provision Book value Amount Proportion (%) Amount Proportion (%) individually insignificant but for which bad debt provision has been accrued individually Total 7,200,000.00 100.00 7,200,000.00 (3) Accounts receivable for the top five balances at the end of the balance The Company's year-end balance of top five accounts receivable amounted to RMB 750,000.00, accounting for 1.83% of the total balance of accounts receivable at the end of the year. The corresponding provision for bad debts at the end of the year is summed up by RMB 0.00. 2. Other Receivables Items Closing balance Opening balance

Interest receivable

Dividends receivable 110,953,333.33 302,506,849.32

Other receivables 87,818,680.70 102,447,756.94

Total 198,772,014.03 404,954,606.26 (1) Dividends Receivables Situation of dividends receivables Project (or invested unit) Closing balance Opening balance

Meinian Onehealth Industry (Group) Co., Ltd. 100,000,000.00 300,000,000.00 Nantong Meizhao Meinian Health Industry M&A Investment Fund (Limited Partnership) 5,953,333.33 Nantong Meizhao Meinian Health Industry M&A Investment 5,000,000.00 2,506,849.32 Fund (Limited Partnership)

Subtotal 110,953,333.33 302,506,849.32

Less: Bad debt provision

Total 110,953,333.33 302,506,849.32 (2) Other Receivables ① Disclosed by aging

Aging Closing balance

Within 1 year 86,839,441.73

1 to 2 year 269,048.00

2 to 3 year 1,197,945.37

227 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Aging Closing balance

3 to 4 year

4 to 5 year

Above 5 years

Subtotal 88,306,435.10

Less: Bad debt provision 487,754.40

Total 87,818,680.70 ② Other receivables are classified by nature of the payment Nature Closing balance Opening balance

Inter-company transactions of related parties 73,891,910.38 53,814,045.90

Stock repurchase 12,412,540.35 46,484,978.67

Current account 1,100,141.00 367,000.00

Deposit 698,604.37 1,781,732.37

Reserve funds 200,039.00

Welfare medical examination 3,200.00

Subtotal 88,306,435.10 102,447,756.94

Less: Bad debt provision 487,754.40

Total 87,818,680.70 102,447,756.94 ③ Accrued situation of bad debt provision

Stage I Stage II Stage III Bad debt provision Expected credit Expected credit Expected credit Total losses for next 12 losses for whole losses whole months period(unimpaired) period(impaired) Balance on 01/01/2019 - -

Balance of other receivables in current period:

—Transfer into Stage II

—Transfer into Stage III

—Back to Stage II

—Back to Stage I

Current accrual 487,754.40 487,754.40

Current reversal

Current write-off

Current verification

Other changes

228 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Stage I Stage II Stage III Bad debt provision Expected credit Expected credit Expected credit Total losses for next 12 losses for whole losses whole months period(unimpaired) period(impaired) Balance on 30/06/2019 487,754.40 487,754.40 ④ Situation of bad debt provision

Opening Current changes Type Closing balance balance Accrued Rewind Write-off

Other receivable 487,754.40 487,754.40

Total 487,754.40 487,754.40 ⑤ Other receivables for the top five balances at the end of the balance Closing Proportion of ending balance of Company name Nature Closing balance Ageing balance of other bad debt receivables (%) provision

Shanghai Meizhao Health Within one Management Co., Ltd. Current account 47,440,000.00 53.72 - year

Shanghai Meiling Medical Within one Imaging Diagnosis Center Current account 13,101,484.90 14.84 - Co., Ltd. year

Within one Haitong Securities Co., Ltd. Stock repurchase 12,412,540.35 14.06 year

Zhoushan Meici Investment Within one Management Co., Ltd. Current account 11,165,000.00 12.64 - year

Jiangxi Meinian Onehealth Within one Management Co., Ltd. Current account 1,719,091.00 1.95 year

Total —— 85,838,116.25 —— 97.21 - 3. Long-term Equity Investment (1) Category of Long-term equity investment

Closing balance Items Book balance Impairment preparation Book value

Investment in subsidiaries 9,693,224,346.03 9,693,224,346.03 Investment in associated enterprises 796,077.70 796,077.70 Total 9,694,020,423.73 9,694,020,423.73 (Cont.)

Opening balance Items Book balance Impairment preparation Book value

229 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Opening balance Items Book balance Impairment preparation Book value

Investment in subsidiaries 8,857,719,346.03 8,857,719,346.03 Investment in associated enterprises 949,824.02 949,824.02 Total 8,858,669,170.05 8,858,669,170.05 (2) Investment in Subsidiaries Closin g Impairm Decr balanc Investee Opening balance Increase Closing balance ent ease e of provision provisi on Meinian Onehealth Industry (Group) 5,882,699,415.39 800,000,000.00 6,682,699,415.39 Co., Ltd. Ciming Health Physical Examination 2,792,615,149.83 2,792,615,149.83 Management Group Co., Ltd. Mainline Health Technology 55,004,780.81 55,004,780.81 (Beijing) Co., Ltd. Shanghai Meizhao Health Management Co., 50,000,000.00 50,000,000.00 Ltd. Beijing Meinian Insurance Broker 50,000,000.00 50,000,000.00 Co., Ltd. Shanghai Meijian Aoya Health Management Co., 21,300,000.00 35,505,000.00 56,805,000.00 Ltd. Shanghai Elephant Medical Technology Co., 5,100,000.00 5,100,000.00 Ltd. Zhoushan Meici Investment Management Co., 1,000,000.00 1,000,000.00 Ltd. Total 8,857,719,346.03 835,505,000.00 9,693,224,346.03

(3) Investment to associated enterprises Increase and decrease in the current year Opening Profit or loss Investee Adjustment of Other equity Increase Decrease recognized by balance OCI changes equity method

230 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Increase and decrease in the current year Opening Profit or loss Investee Adjustment of Other equity Increase Decrease recognized by balance OCI changes equity method Associate Beijing Langmei Culture Media Co., Ltd. 949,824.02 -153,746.32 Total 949,824.02 -153,746.32 (Cont.) Increase and decrease this year Closing balance of Closing Investee Declared distribution of Accruing impairment assets Other balance cash dividends or profit provision impairment provisions Associate Beijing Langmei Culture Media Co., Ltd. 796,077.70 Total 796,077.70 4. Operating Revenue and Operating Costs Current year Prior year Items Revenue Cost Revenue Cost

Main businesses 38,915,094.34 4,000,000.00

Other businesses

Total 38,915,094.34 4,000,000.00 5. Investment Income Items Current year Prior year

Long-term equity investment income calculated by cost method 100,000,000.00 Investment income of available-for-sale financial assets during the holding period 16,968,795.12 4,552,302.87 Long-term equity investment benefited by equity method -153,746.32 -115,456.08

Total 116,815,048.80 4,436,846.79

XVI. Supplementary Information 1. Breakdown of Non-Recurring Profit and Loss for the Current Year Items Amount Note

Profit or loss from disposal of non-current assets -1,619,758.59 Unauthorized approval, or without formal approval, or occasional tax return or exemption Government grants included into the profit or loss for the period (closely related to enterprise’s normal business, meet the national policy, except for government grants in 6,055,324.43 quota or quantity of unified national standards

231 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Items Amount Note continuously enjoyed)

Fund possession costs included in the profit or loss for the period and collected from non-financial enterprises The enterprise’s investment costs for acquisition of subsidiaries, joint venture and associated enterprises are less than the earnings from the fair value of the net identifiable assets of the invested entity that the enterprise should enjoy upon acquisition Profit or loss from non-monetary assets exchange Profit or loss from the assets which are invested or managed by others entrusted 107,015.62 Provision for asset impairments accrued due to force majeure, such as natural disaster Profit or loss from debt restructuring Enterprise restructuring expenses, such as expenditures for employee allocation and integration expenses, etc. Profit or loss exceeding the fair value generated from the transaction with the unfair transaction price Current profits and losses of the subsidiary from business combination under common control from the beginning of the year to the date of consolidation Profit or loss from contingencies irrelevant to normal businesses of the Company Except for valid hedging business related to regular business of the Company, profit or loss from change of fair value from trading financial assets and trading financial liabilities held, and investment income from disposal of trading financial assets, trading financial liabilities and Available-for-sale financial assets Reverse of Provision for Impairment of Receivables under Single Impairment Test Profit or loss from entrusted loans Profit or loss from change of fair value of investment properties measured subsequently at fair value: Influence on the profit or loss for the period by one-off adjustment of profit or loss for the period according to the requirements of tax, accounting and other laws and regulations Custody fee income from entrusted operation

Other non-operating revenues and expenditures -6,341,267.79 The gains and losses from Other profit or loss items in line with the definition of changes in fair value of other non-recurring profit or loss 203,314,558.79 non-current financial assets during the period Subtotal 201,515,872.46

Influenced amount of income tax 47,441,308.19

Influenced amount of non-controlling equity (after-tax) 930,758.19

Total 153,143,806.08

232 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2019.6.30

Note: For the non-recurring profit or loss, “+” represents gains and incomes and “-” represents losses or expenses. The Company recognizes the non-recurring profit or loss as per the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public-Non-recurring profit or loss (Announcement of China Securities Regulatory Commission [2008] No. 43). 2. Return on Equity and Earnings per Share Earnings per share Weighted Average Return Profits for the current period Basic Earnings per on Equity (%) Diluted EPS Share Net profits attributable to the ordinary shareholders of the Company 0.26% 0.01 0.01 Net profits attributable to the ordinary shareholders after deducting non-recurring profit or loss -2.12% -0.04 -0.04

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