Meinian Onehealth Healthcare Holdings Co., Ltd. Auditor’s Report RHSZ [2019] No. 02330031

Contents

1. AUDITOR’S REPORT 1

2. AUDITED FINANCIAL STATEMENTS

1) Consolidated Balance Sheet 6

2) Consolidated Income Statements 8

3) Consolidated Statement of Cash Flows 9

4) Consolidated Statement of Changes in Shareholders’ Equity 10

5) Company Balance Sheet 12

6) Company Income Statements 14

7) Company Statement of Cash Flows 15

8) Company Statement of Changes in Shareholders’ Equity 16

9) Notes to the Financial Statements 18

10) Supplementary Information on Notes to the Financial Statements 248

Postal Address: 9/F, West Tower of China Overseas Property Plaza, Building 7,

NO.8, Yongdingmen Xibinhe Road, Dongcheng District, Beijing

Post Code：100077

Tel：+86(10)88095588 Fax：+86(10)88091199

AUDITOR’S REPORT

RHSZ [2019] No. 02330031

To the Shareholders of Meinian Onehealth Healthcare Holdings Co., Ltd.,

I. Opinion We have audited the financial statements of Meinian Onehealth Healthcare Holdings Co., Ltd. (hereinafter referred to as, the “Company”), which comprise the consolidated and the Company’s balance sheets as at December 31, 2018, the consolidated and the company’s income statements, the consolidated and the company’s statements of changes in shareholders’ equity and the consolidated and the company’s statements of cash flows for the year then ended, and notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial position of the Company as at December 31, 2018, and the consolidated results of operations and cash flows for the year then ended in accordance with the Accounting Standards for Business Enterprises.

II. Basis for opinion We conducted our audit in accordance with China Standards on Auditing for Certified Public Accountants (CSA). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of the company in accordance with “CSA’s Code of Ethics for Certified Public Accountants” (“the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

III. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the following matters in 2018 as key audit matters that need to be communicated in the audit report. 1. Revenue Recognition

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(1) Description As shown in Notes IV. 22 and VI. 37, the Company's 2018 annual operating income amounted to RMB 8,458.4502 million, increased by RMB 2,176.0951 million (i.e. 34.64%) compared with 2017. There is inherent risk that the management of the Company will manipulate the timing of revenue recognition in order to achieve specific goals or expectations. As a result, the revenue recognition has been identified as a key audit matter.

(2) How our audit addressed the Key Audit Matter ① We evaluated and tested the design and operational effectiveness of key internal controls over revenue recognition; ② We inspected samples of sales contracts, check-up list, medical examination reports and other documents, comparing the physical examination time and revenue confirmation time of the medical examination system, and then evaluating whether the medical examination revenue confirmation meets the requirements of the Accounting Standards for Business Enterprises; ③ We performed reasonable test on the revenue by estimating the reasonable range of the revenue generated, based on the information of each physical examination store, including business area, geographical location, headcount of medical staff, headcount of sales personnel, total number of monthly physical examinations, seasonality, equipment for physical examinations, etc.; ④ We performed the analytical review on revenue, such as a) comparing the monthly revenue in the current year with that in prior year; b) analysis on the fluctuation in revenue among the months in the current year and whether the fluctuation and trend are in consistency with the Company’s seasonal operating performance; ⑤ We performed detailed testing on documentary evidence such as the sales contracts, invoices, guidance sheet on examination process, physical examination report and other materials, comparing with the data in Management Information system ("MIS") to assess the authenticity and the accuracy of the revenue; ⑥ Our IT specialist were engaged to perform IT Entity-level Control (ITELC) and Information Technology General Controls ("ITGC") and testing on revenue utilizing Computer Assisted Audit Techniques (CAATs) in the MIS and sale systems; ⑦ We performed a cut-off test on sales revenue recorded before and after the balance sheet date to check whether revenue is recorded in the appropriate accounting period.

2. Goodwill Impairment (1) Description As shown in Notes IV. 19 and VI. 14, the ending balance of goodwill as at December 31, 2018 amounted to RMB 4,739.1772 million, which is material. When the company's management performs the impairment test on the goodwill, the corresponding impairment provision is confirmed based on the portion of the asset group or asset group combination containing the goodwill that is lower than the carrying amount. The key assumptions involved in assessing recoverable amounts include revenue growth rate, gross margin, expense ratio, and discount rate. The evaluation process of goodwill impairment test is complex and involves the estimation and judgment of management. Therefore, the goodwill impairment has been identified as a key audit matter.

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(2) How our audit addressed the Key Audit Matter ①We gained an understanding of, and assessed the design and operational effectiveness of key internal controls over goodwill; ②We examined documents related to the generation of goodwill, including resolutions made by the management, equity acquisition agreements, assets valuation reports, etc. We assessed impacts that acquisition conditions, business completion date, performance forecast and other factors may have on the generation and valuation of goodwill; ③ We communicated with external valuation experts to agree on the nature, scope and objectives of its work, the roles and responsibilities of CPAs and valuation experts, and to evaluate the competency, professionalism and objectivity of external valuation experts; ④ We obtained the valuation report on goodwill impairment testing, communicated with the valuation experts and assessed the reasonableness of the valuation method and underlying assumptions adopted in the impairment test of goodwill as well as the appropriateness of the valuation method; ⑤ With the assistance of our internal valuation experts, we evaluated the value types adopted by external valuation experts, the appropriateness of valuation methods, and the rationality of key parameters such as important assumptions and discount rates, and reviewed related calculation processes and calculation results.

IV. Other information The Company’s management (hereinafter referred to as “the management”) is responsible for the other information. The other information comprises the information included in the 2018 annual report, but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

V. Responsibilities of management and those charged with governance for the financial statements The Management is responsible for the preparation of the financial statements that give a true and fair view in accordance with Accounting Standard for Business Enterprises, and designing, implementing and maintaining internal control, as the management determines, is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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In preparing the financial statements, the management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

VI. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with CSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with CSAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal controls.

3. Evaluate the appropriateness of accounting policies and the reasonableness of accounting estimates and related made by the management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw users’ attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements

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Consolidated Balance Sheet as at December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB

Item Notes Closing Balance Opening Balance

Current assets:

Cash and Cash equivalents VI.1 2,494,443,782.20 2,390,118,239.69 Financial assets measured at fair value through profit or loss for the current period Derivative financial assets

Notes receivable and accounts receivable VI.2 1,969,487,061.48 1,422,072,673.72

Including: notes receivable VI.2 1,161,270.00

Accounts receivable VI.2 1,969,487,061.48 1,420,911,403.72

Advances to customers VI.3 201,910,849.18 121,738,781.65

Other receivables VI.4 396,632,145.97 272,549,027.20

Including: interests receivable

Dividends receivable VI.4 2,506,849.32

Inventories VI.5 126,509,029.89 87,188,562.42

Assets held for sale

Non-current assets due within one year VI.6 360,853,015.93 173,774,268.93

Other current assets VI.7 256,561,998.78 196,965,472.62

Total current assets 5,806,397,883.43 4,664,407,026.23

Non-current assets:

Available-for-sale financial assets VI.8 1,077,054,315.70 576,626,206.70

Held-to-maturity investments

Long-term receivables VI.9 744,652,063.18 336,998,843.52

Long-term equity investments VI.10 60,231,369.98 31,322,043.29

Investment properties

Fixed assets VI.11 2,562,138,477.09 1,861,956,019.33

Construction in progress VI.12 68,604,915.20 86,580,880.55

Biological assets held for production

Oil and gas assets

Intangible assets VI.13 165,411,353.51 138,574,487.23

Development expenditure

Goodwill VI.14 4,739,177,185.62 4,045,550,972.43

Long-term deferred expenses VI.15 827,241,158.91 659,582,566.77

Deferred tax assets VI.16 83,033,241.39 77,347,441.69

Other non-current assets VI.17 220,627,280.10 141,567,156.24

Total non-current assets 10,548,171,360.68 7,956,106,617.75

Total Assets 16,354,569,244.11 12,620,513,643.98

(b.d.) 6 (b.f.) Consolidated Balance Sheet (Continued) as at December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB Item Notes Closing Balance Opening Balance Current liabilities: Short-term borrowings VI. 18 2,413,749,870.37 1,144,429,300.00 Financial liabilities measured at fair value through profit or loss for the current period Notes payable and accounts payable VI. 19 803,502,506.83 595,972,612.79 Advances from customers VI. 20 1,416,392,619.17 1,106,054,141.44 Employee benefits payable VI. 21 445,772,619.73 425,733,585.12 Tax payables VI. 22 156,481,244.95 109,432,976.21 Other payables VI. 23 590,396,914.50 307,243,122.59 Including: interests payable VI. 23 55,119,683.93 34,571,686.48 Dividends payable VI. 23 8,315,608.32 5,843,848.23 Liabilities held for sale Non-current liabilities due within one year VI. 24 827,678,975.49 408,770,288.04 Other current liabilities VI. 25 400,000,000.00 Total current liabilities 6,653,974,751.04 4,497,636,026.19 Non-current liabilities: Long-term borrowings VI. 26 1,353,556,140.76 603,305,502.75 Bonds payable VI. 27 896,123,646.74 396,498,769.88 Including: Preferred shares Perpetual bonds Long-term payables VI. 28 100,552,675.75 92,650,977.73 Long-term employee benefits payable Provisions Deferred income VI. 29 4,950,000.00 Deferred tax liabilities VI. 16 49,414,112.77 18,662,995.09 Other non-current liabilities VI. 30 330,675.54 212,643.51 Total non-current liabilities 2,404,927,251.56 1,111,330,888.96 Total Liabilities 9,058,902,002.60 5,608,966,915.15 Shareholders' equity: Share capital VI. 31 3,121,566,956.00 2,601,305,797.00 Other equity instruments Capital reserve VI. 32 1,331,871,192.64 2,444,954,289.85 Less: Treasury shares VI. 33 83,515,021.33 Other comprehensive income VI. 34 518,850.52 77,933.67 Specialized reserve Surplus reserves VI. 35 71,934,339.69 38,771,034.85 General risk reserve Undistributed profit VI. 36 2,123,783,947.53 1,466,364,214.68 Total equity attributable to the shareholders of the 6,566,160,265.05 6,551,473,270.05 parent company Minority interests 729,506,976.46 460,073,458.78 Total Shareholders' Equity 7,295,667,241.51 7,011,546,728.83 Total Liabilities and Shareholders' Equity 16,354,569,244.11 12,620,513,643.98 The notes to financial statements, pages 18 to 249, form part of the financial statements. Page 6 to page 17 have been approved by the followings: Legal representative: Principal in charge of accounting: Head of accounting department:

7 Consolidated Income Statements for the year ended December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB Item Notes 2018 2017 I. Total revenue VI. 37 8,458,450,179.59 6,282,355,092.36 Including: Operating revenue VI. 37 8,458,450,179.59 6,282,355,092.36 II. Total operating costs 7,361,578,217.52 5,508,094,716.01 Including: Operating costs VI. 37 4,435,543,136.77 3,337,714,034.66 Business tax and surcharge VI. 38 12,241,112.78 7,822,412.96 Selling and distribution expenses VI. 39 2,026,747,403.35 1,532,461,837.59 Administrative expenses VI. 40 577,964,215.12 475,788,546.92 Research and development expenses VI. 41 37,797,628.21 25,351,120.06 Financial expenses VI. 42 245,761,934.65 111,187,338.64 Interest expense 249,249,601.68 104,905,656.49 Interest income 21,478,550.62 10,600,174.98 Impairment loss of assets VI. 43 25,522,786.64 17,769,425.18 Add: Other Income VI. 44 6,113,779.64 5,309,882.62 Investment income (loss presented with "-" prefix) VI. 45 195,410,793.31 64,364,404.18 Including: Investment income from associates and joint ventures VI. 45 -9,848,298.43 -4,800,953.59 Gain from changes in fair value (loss presented with "-" prefix) Gains from asset disposals (loss presented with "-" prefix) VI. 46 -1,535,762.10 -610,803.46 Profit from operation (loss presented with "-" prefix) III. Operating profit ( “-” for loss ) 1,296,860,772.92 843,323,859.69 Add: Non-operating revenue VI. 47 4,719,767.82 4,091,913.52 Less: Non-operating expenses VI. 48 18,109,005.97 6,309,766.51 IV. Total profit ( “-” for loss ) 1,283,471,534.77 841,106,006.70 Less: Income tax expenses VI. 49 310,684,968.10 207,257,786.20 V. Net profit ( “-” for net loss ) 972,786,566.67 633,848,220.50 (I) Classified by continuity of operations 1. Net profit from continuing operations ( “-” for loss ) 972,786,566.67 633,848,220.50 2. Net profit from discontinued operation ( “-” for loss ) (II) Classified by ownership of the equity 1. Net profit from minority interests ( “-” for loss ) 152,138,239.13 49,895,528.34 2. Attributable to shareholders of the company ( “-” for loss ) 820,648,327.54 583,952,692.16 VI. Other comprehensive income, net of tax 440,916.85 -123,320.10 Other comprehensive income after tax attributable to parent company 440,916.85 -123,320.10 (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 (2) Other comprehensive income that will be subsequently reclassified to profit or 440,916.85 -123,320.10 loss 1. Shares of other comprehensive income of the investee accounted for using equity method that will be subsequently reclassified to profit or loss 2. Changes in fair value of available-for-sale financial assets 3. Profits or losses arising from reclassification of held-to-maturity investments to available-for-sale financial assets 4. Effective portion of gains or losses on hedging instruments in a cash flow hedge 5. Translation differences arising on translation of financial statements 440,916.85 -123,320.10 denominated in foreign currencies 6. Others After tax amount of other comprehensive income attributable to non-controlling shareholders VII. Total comprehensive income 973,227,483.52 633,724,900.40 Total comprehensive income attributable to shareholders of the Parent 821,089,244.39 583,829,372.06 Total comprehensive income attributable to minority interests 152,138,239.13 49,895,528.34 VIII. Earnings per share: 1. Basic earnings per share XV. 2 0.26 0.19 2. Diluted earnings per share XV. 2 0.26 0.19 In 2018, when the Company merged under the common control, the net profit realized by the merged party before the merger was RMB 116,464.36 for January to July of year 2018 and RMB -61,954,972.01 for year 2017 respectively. The net profit realized by the merged party before the merger date in the above-mentioned enterprise merger under the common control has been included in the " net profit" in the above statement. The notes to financial statements, pages 18 to 249, form part of the financial statements. Page 6 to page 17 have been approved by the followings: Legal representative: Principal in charge of accounting: Head of accounting department:

8 Consolidated Statement of Cash Flows for the year ended December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB Item Notes 2018 2017 I. Cash flows from operating activities: Cash receipts from the sale of goods and the rendering of services 8,390,901,428.37 6,438,612,249.88 Receipts of taxes refunds 2,836,539.59 1,735,750.13 Other cash receipts relating to operating activities VI. 51 256,254,295.06 221,547,642.34 Subtotal of cash inflows from operating activities 8,649,992,263.02 6,661,895,642.35 Cash payments for goods purchased and services received 2,568,953,172.58 1,775,935,036.66 Cash payments to and on behalf of employees 3,257,101,392.82 2,235,893,893.74 Payments of all types of taxes 266,986,384.93 227,351,865.57 Other cash payments relating to operating activities VI. 51 1,018,343,758.33 1,022,977,795.17 Subtotal of cash outflows from operating activities 7,111,384,708.66 5,262,158,591.14 Net cash flows from operating activities VI. 52 1,538,607,554.36 1,399,737,051.21 II. Cash flows from investing activities: Cash receipts from disposal of investments 223,712,591.00 644,873,000.00 Cash receipts from gains on investments 60,389,644.20 13,718,488.39 Net cash receipts from disposals of fixed assets, intangible assets and 914,646.35 8,325,052.05 other long-term assets Net cash receipts from disposals of subsidiaries and other business

units Other cash receipts relating to investing activities VI. 51 301,371,831.26 156,784,364.82 Subtotal of cash inflows from investment activities 586,388,712.81 823,700,905.26 Cash payments to acquire and construct fixed assets, intangible assets 831,153,571.89 890,785,325.52 and other long-term assets Cash payments to acquire investments 935,108,310.50 945,970,527.08 Net cash payments for acquisitions of subsidiaries and other business VI. 52 523,652,188.09 437,226,781.46 units Other cash payments relating to investing activities VI. 51 1,077,401,765.39 496,264,196.91 Subtotal of cash outflows from investment activities 3,367,315,835.87 2,770,246,830.97 Net cash flows from investing activities -2,780,927,123.06 -1,946,545,925.71 III. Cash flows from financing activities: Cash receipts from capital contribution 31,549,550.00 486,674,987.37 Including: Cash receipts from capital contributions from non-controlling 31,549,550.00 16,675,000.00 shareholders of subsidiaries Cash receipts from borrowings 5,029,290,037.35 2,919,760,745.37 Cash receipts from issue of bonds 497,500,000.00 Other cash receipts relating to financing activities VI. 51 36,020,000.00 24,410,000.00 Subtotal of cash inflows from financing activities 5,594,359,587.35 3,430,845,732.74 Cash repayments of amounts borrowed 3,044,998,547.81 1,209,251,536.35 Cash payments for distribution of dividends, profits or interest expenses 389,810,816.49 125,944,669.46 Including: Cash payments for distribution of dividends or profit from 29,091,817.16 16,329,034.56 subsidiaries to non-controlling shareholders Other cash payments relating to financing activities VI. 51 917,740,998.30 536,792,418.74 Subtotal of cash outflows from financing activities 4,352,550,362.60 1,871,988,624.55 Net cash flows from financing activities 1,241,809,224.75 1,558,857,108.19 IV. Effect of foreign exchange rate changes on cash and cash 615,358.75 -7,252.50 equivalents V. Net increase in cash and cash equivalents VI. 52 105,014.80 1,012,040,981.19 Add: Opening balance of cash and cash equivalents VI. 52 2,390,117,639.69 1,378,076,658.50 VI. Closing balance of cash and cash equivalents VI. 52 2,390,222,654.49 2,390,117,639.69 The notes to financial statements, pages 18 to 249, form part of the financial statements. Page 6 to page 17 have been approved by the followings: Legal representative: Principal in charge of accounting: Head of accounting department:

9 Consolidated Statement of Changes in Shareholders' Equity for the year ended December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB 2018 Total equity attributable to the shareholders of the parent company Item Minority stockholder's Total shareholders' Other comprehensive Share Capital Capital Reserve Less: Treasury stock Surplus reserves Undistributed profits equity equity income

I. Balance at December 31, 2017 2,601,305,797.00 2,357,463,089.85 77,933.67 38,771,034.85 1,498,909,518.25 406,344,718.28 6,902,872,091.90 Add: Changes in accounting policies Correction of prior years errors Combination of businesses under common 87,491,200.00 -32,545,303.57 53,728,740.50 108,674,636.93 control Others II. Balance at January 1, 2018 2,601,305,797.00 2,444,954,289.85 77,933.67 38,771,034.85 1,466,364,214.68 460,073,458.78 7,011,546,728.83 III. Increase / (decrease) in the current year ("-" 520,261,159.00 -1,113,083,097.21 83,515,021.33 440,916.85 33,163,304.84 657,419,732.85 269,433,517.68 284,120,512.68 for losses) (1) Total comprehensive income 440,916.85 820,648,327.54 152,138,239.13 973,227,483.52 (2) Shareholders' contributions and reduction in -592,821,938.21 83,515,021.33 148,638,668.68 -527,698,290.86 capital 1. Capital contribution from shareholders 31,549,550.00 31,549,550.00 2. Capital contribution from other equity instruments holders 3. Share-based payment recognized in shareholders' equity 4. Others -592,821,938.21 83,515,021.33 117,089,118.68 -559,247,840.86 (3) Profit distribution 33,163,304.84 -163,228,594.69 -31,343,390.13 -161,408,679.98 1. Appropriation to surplus reserve 33,163,304.84 -33,163,304.84 2. Appropriation to general risk reserve 3. Profit distribution to shareholders -130,065,289.85 -31,343,390.13 -161,408,679.98 4. Others (4) Internal carry-forward of shareholders' equity 520,261,159.00 -520,261,159.00 1. Transfer from capital reserve to capital (or 520,261,159.00 -520,261,159.00 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 IV. Balance at December 31, 2018 3,121,566,956.00 1,331,871,192.64 83,515,021.33 518,850.52 71,934,339.69 2,123,783,947.53 729,506,976.46 7,295,667,241.51 The notes to financial statements, pages 18 to 249, form part of the financial statements. Page 6 to page 17 have been approved by the followings: Legal representative: Principal in charge of accounting: Head of accounting department:

10 Consolidated Statement of Changes in Shareholders' Equity (Continued) for the year ended December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB 2017 Total equity attributable to the shareholders of the parent company Item Minority stockholder's Total shareholders' Other comprehensive Share Capital Capital Reserve Less: Treasury stock Surplus reserves Undistributed profits equity equity income

I. Balance at December 31, 2017 2,421,482,706.00 21,464,767.03 201,253.77 1,501,538.02 867,978,788.34 271,295,013.69 3,583,924,066.85 Add: Changes in accounting policies Correction of prior years errors Combination of businesses under common 2,545,258,027.01 88,024,471.60 143,996,270.45 2,777,278,769.06 control Others II. Balance at January 1, 2018 2,421,482,706.00 2,566,722,794.04 201,253.77 1,501,538.02 956,003,259.94 415,291,284.14 6,361,202,835.91 III. Increase / (decrease) in the current year ("- 179,823,091.00 -121,768,504.19 -123,320.10 37,269,496.83 510,360,954.74 44,782,174.64 650,343,892.92 " for losses) (1) Total comprehensive income -123,320.10 583,952,692.16 49,895,528.34 633,724,900.40 (2) Shareholders' contributions and reduction in c 179,823,091.00 -121,768,504.19 16,149,327.50 74,203,914.31 1. Capital contribution from shareholders 179,823,091.00 2,615,773,461.84 13,903,000.00 2,809,499,552.84 2. Capital contribution from other equity instruments holders 3. Share-based payment recognized in shareholders' equity 4. Others -2,737,541,966.03 2,246,327.50 -2,735,295,638.53 (3) Profit distribution 37,269,496.83 -73,591,737.42 -21,262,681.20 -57,584,921.79 1. Appropriation to surplus reserve 37,269,496.83 -37,269,496.83 2. Appropriation to general risk reserve 3. Profit distribution to shareholders -36,322,240.59 -21,262,681.20 -57,584,921.79 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. Others

（5）Special reserve 1. Current appropriation 2. Current utilization

（6）Others IV. Balance at December 31, 2018 2,601,305,797.00 2,444,954,289.85 77,933.67 38,771,034.85 1,466,364,214.68 460,073,458.78 7,011,546,728.83

The notes to financial statements, pages 18 to 249, form part of the financial statements.

Page 6 to page 17 have been approved by the followings:

Legal representative: Principal in charge of accounting: Head of accounting department:

11 Company Balance Sheet as at December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB

Item Notes Closing Balance Opening Balance

Current assets:

Cash and Cash equivalents 67,417,904.15 302,916,906.10 Financial assets measured at fair value through profit or loss for the current period Derivative financial assets

Notes receivable and accounts receivable XIV. 1 7,200,000.00

Including: notes receivable

Accounts receivable 7,200,000.00

Advances to customers 3,554,020.84 197,026.09

Other receivables XIV. 2 404,954,606.26 560,530,948.76

Including: interests receivable

Dividends receivable XIV. 2 302,506,849.32 200,000,000.00

Inventories

Assets held for sale

Non-current assets due within one year

Other current assets 10,162,420.90 7,279,128.02

Total current assets 493,288,952.15 870,924,008.97

Non-current assets:

Available-for-sale financial assets 432,000,000.00 191,900,000.00

Held-to-maturity investments

Long-term receivables

Long-term equity investments XIV. 3 8,858,669,170.05 8,685,214,395.39

Investment properties

Fixed assets 2,512,198.71 2,075,525.98

Construction in progress 371,732.11 933,709.01

Biological assets held for production

Oil and gas assets

Intangible assets

Development expenditure

Goodwill

Long-term deferred expenses 7,776,788.23 7,869,204.35

Deferred tax assets

Other non-current assets 100,640,000.00

Total non-current assets 9,401,969,889.10 8,887,992,834.73

Total Assets 9,895,258,841.25 9,758,916,843.70

(b.d.) 12 (b.f.) Company Balance Sheet (Continued) as at December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB Item Notes Closing Balance Opening Balance Current liabilities: Short-term borrowings 30,000,000.00 100,000,000.00 Financial liabilities measured at fair value through profit or loss for the current period Derivative financial liabilities Notes payable and accounts payable 1,208,332.31 385,820.41 Advances from customers Employee benefits payable 4,425,860.34 4,966,750.01 Tax payables 407,936.98 1,595,570.62 Other payables 468,310,130.51 37,753,041.57 Including: interests payable 41,255,658.97 30,316,228.40 Dividends payable Liabilities held for sale Non-current liabilities due within one year Other current liabilities 400,000,000.00 Total current liabilities 504,352,260.14 544,701,182.61 Non-current liabilities: Long-term borrowings 20,000,000.00 Bonds payable 896,123,646.74 396,498,769.88 Including: Preferred shares Perpetual bonds Long-term payables Deferred tax liabilities Other non-current liabilities Total non-current liabilities 916,123,646.74 396,498,769.88 Total Liabilities 1,420,475,906.88 941,199,952.49 Shareholders' equity: Share capital 3,121,566,956.00 2,601,305,797.00 Other equity instruments Capital reserve 5,047,465,527.61 5,899,502,811.40 Less: Treasury shares 83,515,021.33 Other comprehensive income Specialized reserve Surplus reserves 136,626,800.32 114,351,447.26 General risk reserve Undistributed profit 252,638,671.77 202,556,835.55 Total Shareholders' Equity 8,474,782,934.37 8,817,716,891.21 Total Liabilities and Shareholders' Equity 9,895,258,841.25 9,758,916,843.70 The notes to financial statements, pages 18 to 249, form part of the financial statements. Page 6 to page 17 have been approved by the followings: Legal representative: Principal in charge of accounting: Head of accounting department:

13 Company Income Statements for the year ended December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB

Item Notes 2018 2017

I. Total revenue XIV. 4 6,792,452.83

Less: Operating costs XIV. 4 1,174,863.30

Business tax and surcharge 193,836.00 64,707.25

Selling and distribution expenses

Administrative expenses 76,811,531.80 56,124,050.25

Research and development expenses

Financial expenses 45,592,813.12 32,508,370.46

Interest expense 58,030,054.92 33,704,508.33

Interest income 12,494,849.26 2,808,304.98

Impairment loss of assets

Add: Other Income

Investment income (loss presented with "-" prefix) XIV. 5 324,116,753.31 312,485,935.34

Including: Investment income from associates and joint ventures XIV. 5 -1,176,100.55 -2,514,064.66

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

Gains from asset disposals (loss presented with "-" prefix)

III. Operating profit ( “-” for loss ) 207,136,161.92 223,788,807.38

Add: Non-operating revenue 20,331,051.42

Less: Non-operating expenses 4,713,682.79 5,544,160.87

IV. Total profit ( “-” for loss ) 222,753,530.55 218,244,646.51

Less: Income tax expenses

V. Net profit ( “-” for net loss ) 222,753,530.55 218,244,646.51

1. Net profit from continuing operations ( “-” for loss ) 222,753,530.55 218,244,646.51

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

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 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 (2) Other comprehensive income that will be subsequently reclassified to profit or loss 1. Shares of other comprehensive income of the investee accounted for using equity method that will be subsequently reclassified to profit or loss 2. Changes in fair value of available-for-sale financial assets 3. Profits or losses arising from reclassification of held-to-maturity investments to available-for-sale financial assets 4. Effective portion of gains or losses on hedging instruments in a cash flow hedge 5. Translation differences arising on translation of financial statements denominated in foreign currencies 6. Others

VI. Total comprehensive income 222,753,530.55 218,244,646.51 The notes to financial statements, pages 18 to 249, form part of the financial statements.

Page 6 to page 17 have been approved by the followings:

Legal representative: Principal in charge of accounting: Head of accounting department:

14 Company Statement of Cash Flows for the year ended December 31, 2018

Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB

Item Notes 2018 2017

I. Cash flows from operating activities:

Cash receipts from the sale of goods and the rendering of services 130,857.65

Receipts of taxes refunds

Other cash receipts relating to operating activities 783,448,635.71 1,239,464,819.05

Subtotal of cash inflows from operating activities 783,579,493.36 1,239,464,819.05

Cash payments for goods purchased and services received 5,481,154.84

Cash payments to and on behalf of employees 19,135,984.79 10,336,645.15

Payments of all types of taxes 193,836.00 64,707.25

Other cash payments relating to operating activities 105,057,920.12 1,768,681,128.10

Subtotal of cash outflows from operating activities 129,868,895.75 1,779,082,480.50

Net cash flows from operating activities 653,710,597.61 -539,617,661.45

II. Cash flows from investing activities:

Cash receipts from disposal of investments 37,900,000.00

Cash receipts from gains on investments 222,786,004.54 115,000,000.00 Net cash receipts from disposals of fixed assets, intangible assets and other

long-term assets Other cash receipts relating to investing activities

Subtotal of cash inflows from investment activities 260,686,004.54 115,000,000.00 Cash payments to acquire and construct fixed assets, intangible assets and other 3,466,057.33 8,783,048.89 long-term assets Cash payments to acquire investments 497,375,000.00 567,112,193.00

Other cash payments relating to investing activities

Subtotal of cash outflows from investment activities 500,841,057.33 575,895,241.89

Net cash flows from investing activities -240,155,052.79 -460,895,241.89

III. Cash flows from financing activities:

Cash receipts from capital contribution 469,999,987.37

Cash receipts from borrowings

Cash receipts from issue of bonds 50,000,000.00 794,400,000.00

Other cash receipts relating to financing activities 497,500,000.00 100,000,000.00

Subtotal of cash inflows from financing activities 547,500,000.00 1,364,399,987.37

Cash repayments of amounts borrowed 500,000,000.00 60,000,000.00

Cash payments for distribution of dividends, profits or interest expenses 175,172,546.77 39,593,440.59

Other cash payments relating to financing activities 521,382,000.00 21,597,043.09

Subtotal of cash outflows from financing activities 1,196,554,546.77 121,190,483.68

Net cash flows from financing activities -649,054,546.77 1,243,209,503.69

IV. Effect of foreign exchange rate changes on cash and cash equivalents

V. Net increase in cash and cash equivalents -235,499,001.95 242,696,600.35

Add: Opening balance of cash and cash equivalents 302,916,906.10 60,220,305.75

VI. Closing balance of cash and cash equivalents 67,417,904.15 302,916,906.10

The notes to financial statements, pages 18 to 249, form part of the financial statements.

Page 6 to page 17 have been approved by the followings:

Legal representative: Principal in charge of accounting: Head of accounting department:

15 Company Statement of Changes in Shareholders' Equity for the year ended December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB 2018 Item Share Capital Capital Reserve Less: Treasury stock Other comprehensive income Surplus reserves Undistributed profits Total shareholders' equity

I. Balance at December 31, 2017 2,601,305,797.00 5,899,502,811.40 114,351,447.26 202,556,835.55 8,817,716,891.21 Add: Changes in accounting policies Correction of prior years errors Others II. Balance at January 1, 2018 2,601,305,797.00 5,899,502,811.40 114,351,447.26 202,556,835.55 8,817,716,891.21 III. Increase / (decrease) in the current year ("- 520,261,159.00 -852,037,283.79 83,515,021.33 22,275,353.06 50,081,836.22 -342,933,956.84 " for losses) (1) Total comprehensive income 222,753,530.55 222,753,530.55 (2) Shareholders' contributions and -331,776,124.79 83,515,021.33 -415,291,146.12 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 -331,776,124.79 83,515,021.33 -415,291,146.12 (3) Profit distribution 22,275,353.06 -152,340,642.91 -130,065,289.85 1. Appropriation to surplus reserve 22,275,353.06 -22,275,353.06 2. Appropriation to general risk reserve 3. Profit distribution to shareholders -130,065,289.85 -130,065,289.85 4. Others (4) Internal carry-forward of shareholders' 520,261,159.00 -520,261,159.00 equity 1. Transfer from capital reserve to capital 520,261,159.00 -520,261,159.00 (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 -20,331,051.42 -20,331,051.42 IV. Balance at December 31, 2018 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 The notes to financial statements, pages 18 to 249, form part of the financial statements. Page 6 to page 17 have been approved by the followings: Legal representative: Principal in charge of accounting: Head of accounting department:

16 Company Statement of Changes in Shareholders' Equity (Continued) for the year ended December 31, 2018 Prepared by: Meinian Onehealth Healthcare Holdings Co., Ltd. Unit: RMB 2017 Item Share Capital Capital Reserve Less: Treasury stock Other comprehensive income Surplus reserves Undistributed profits Total shareholders' equity

I. Balance at December 31, 2017 2,421,482,706.00 3,278,531,183.17 92,526,982.61 38,092,181.11 5,830,633,052.89 Add: Changes in accounting policies Correction of prior years errors Others II. Balance at January 1, 2018 2,421,482,706.00 3,278,531,183.17 92,526,982.61 38,092,181.11 5,830,633,052.89 III. Increase / (decrease) in the current year ("- 179,823,091.00 2,620,971,628.23 21,824,464.65 164,464,654.44 2,987,083,838.32 " for losses) (1) Total comprehensive income 218,244,646.51 218,244,646.51 (2) Shareholders' contributions and 179,823,091.00 2,620,971,628.23 2,800,794,719.23 reduction in capital 1. Capital contribution from shareholders 179,823,091.00 2,615,773,461.84 2,795,596,552.84 2. Capital contribution from other equity instruments holders 3. Share-based payment recognized in shareholders' equity 4. Others 5,198,166.39 5,198,166.39 (3) Profit distribution 21,824,464.65 -58,146,705.24 -36,322,240.59 1. Appropriation to surplus reserve 21,824,464.65 -21,824,464.65 2. Appropriation to general risk reserve 3. Profit distribution to shareholders -36,322,240.59 -36,322,240.59 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. Others （5）Special reserve 1. Current appropriation 2. Current utilization （6）Others 4,366,713.17 4,366,713.17 IV. Balance at December 31, 2018 2,601,305,797.00 5,899,502,811.40 114,351,447.26 202,556,835.55 8,817,716,891.21 The notes to financial statements, pages 18 to 249, form part of the financial statements.

Page 6 to page 17 have been approved by the followings:

Legal representative: Principal in charge of accounting: Head of accounting department:

17 Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements for the year 2018 (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 224,250,000. 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 224,250,000 shares. After the distribution of dividends, the Company’s total share capital was increased to RMB 278,070,000. 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 China 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 raising supporting funds. After the increase of capital, the total share capital of the Company

18

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 Checkup Management Group Co., Ltd. (hereinafter referred to as “Ciming Health Checkup”). As at October 11, 2017, 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 office: No.218 East Renmin Road, Nantong, Jiangsu; Legal representative: Yu Rong. Business scope of the Company: engagement in technological development, 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

19

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 counseling); design, production and sales of various kinds of clothing, apparels and raw and auxiliary materials; scientific and technological development relating to textiles and clothing; engage in import and export business of foregoing commodities independently or as an agency. (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 financial statements have been approved by the board of directors of the Company on April 25, 2019. The Company has 240 subsidiaries in total which are included in the consolidation scope in 2018. For more details, please refer to Note VIII “Interests in Other Entities”. The companies in the consolidation scope of the Company for the current year increases by 74 compared with the prior year with no reduction. For more details, please see Note VII “Change in Consolidation Scope”. 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 Accounting

20

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 description. For the description of the significant accounting judgments and estimates made by the 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. 4. Accounting treatment of business combination under the common control

21

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 party that is 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. 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

22

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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

23

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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 have 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

24

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 income statements 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 income statements 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 income statements 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 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 income statements,

25

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 income statements. 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”. 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

26

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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. 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

27

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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.

28

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 "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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 period for disposal. When overseas operational control is retained but the proportion of overseas 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 The Company shall recognize a financial asset or financial liability at the date the Company becomes a party to a financial instrument. The financial assets and financial liabilities are measured at their fair value on initial recognition. For the financial assets and financial liabilities at fair value through profit or loss (FVTPL), the transaction expenses thereof shall be directly recorded into the current profit or loss; for other categories of financial assets and financial liabilities, the transaction expenses thereof shall be recorded into the initially recognized amount. (1) Methods of Recognition of Fair Value of Financial Assets and Financial Liabilities Fair value refers to the price that can be received through selling an asset or payment for the transfer of a liability by the market participant in the orderly transaction on the measurement date. The fair value of the financial assets or financial liabilities in the active market of the Company shall be determined at the quoted price in the active

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 market in case that the financial instruments exist in the active market. The quoted price in active market refers to price that is easily obtained from the exchange, broker, industry association, pricing service institution, etc. and represents the price of market transaction actually happened in the fair transaction. The fair value of the financial assets or financial liabilities of the Company shall be determined via valuation technique in case that the underlying financial instruments do not exist in the active market. The value appraisal techniques mainly comprise the prices adopted by the parties, who are familiar with the condition, in the latest market transaction upon their own free will, the current fair value obtained by referring to other financial instruments of the same essential nature, the cash flow capitalization method, the option pricing model, etc. (2) Classification, Recognition and Measurement of Financial Assets For the standard sale of financial assets, it is recognized and terminated on the transaction date. Financial assets shall be classified into the following four categories when they are initially recognized: The financial assets at fair value through profit or loss, the held-to-maturity investments, loans and receivables, and available-for-sale financial assets. ① Financial Assets at fair value through profit or loss: It includes financial assets held for trading and financial asset designated as at fair value through profit or loss: A financial asset is classified as held for trading if one of the following conditions is satisfied: A. It has been acquired principally for selling in the near term; B. It is part of a portfolio of identifiable financial instruments that the Company manages together and there is objective evidence that the Company has a recent actual pattern of short -term profit -taking; C. It is a derivative that is not designated and effective as a hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured. A financial asset may be designated as at fair value through profit or loss upon initial recognition only when one of the following conditions is satisfied: A. Such designation may eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise result from measuring assets or recognizing the gains or losses on them on different bases; B. The official written documents of risk management or investment strategies of the Company concerned have described that the said combination of financial assets, the said combination of financial liabilities, or

31

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 the combination of financial assets and financial liabilities will be managed and evaluated on the basis of their fair values and will be reported to the key management personnel. Financial assets at fair value through profit or loss are subsequently measured at fair value. Any gains or losses arising from changes in the fair value and any dividend or interest income earned on the financial assets are recognized in current profit or loss. ② Held-to-maturity Investments The term "held-to-maturity investment" refers to a non-derivative financial asset with a fixed date of maturity, a fixed or determinable amount of repo amount and which the Company holds for a definite purpose or the Company is able to hold until its maturity. Held-to-maturity investment shall be subsequently measured at amortized cost by actual interest rate method, with profit or loss arising out from de-recognition, impairment or amortization included into the profit or loss for the period. The actual interest rate method refers to the method by which the post-amortization costs and the interest incomes or interest expenses of different installments are calculated in light of the actual interest rates of the financial assets or financial liabilities (including a set of financial assets or financial liabilities). The effective interest rate refers to the interest rate adopted to the future cash flow of a financial asset or financial liability within the predicted term of existence or within a shorter applicable term into the current book value of the financial asset or financial liability. To calculate the actual interest rate, the Company estimates the future cash flow on the basis of taking all the contractual provisions concerning the financial asset or financial liability into account (exclude the future credit losses). The various fee charged, trading expenses, premiums or reduced values, etc., which are paid or collected by the parties to a financial asset or financial liability contract and which form a part of the actual interest rate, shall be taken into account in the determination of the actual interest rate. ③ Loans and Receivables Loans and Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivable classified by the Company include notes receivable, receivables, interest receivable, dividends receivable and other receivables. Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from de-recognition, impairment or

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 amortization is recognized in current profit or loss. ④ Available-For-Sale Financial Assets "Available-for-sale financial assets" refers to the non-derivative financial assets which are designated as being available-for-sale when they are initially recognized as well as the financial assets other than financial assets at fair value through profit or loss, loans and receivables and held-to-maturity investment. The closing cost of the available-for-sale debt instrument is determined at amortized cost, namely, the closing cost is the amount that the initially recognized amount deducts the repaid principal, adds or deducts accumulated amortized amount arising from the amortization of the balance between the initially recognized amount and the due amount by effective interest rate, and less amounts after incurred impairment loss. Closing cost of the available-for-sale equity instrument investment is the cost of acquisition. Available-for-sale financial assets are subsequently measured at fair value. Any gains or losses arising from changes in the fair value are recognized as other comprehensive incomes, except that impairment losses and exchange differences related to amortized cost of monetary financial assets denominated in foreign currencies are recognized in current profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recorded in current profit or loss. However, for investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, and derivative financial assets that are linked to and must be settled by delivery of such unquoted equity instruments, they are measured subsequently at cost. Interests received, and cash dividends issued as announced by the investee during the obtaining of the available-for-sale financial assets shall be recorded into the investment incomes. (3) Impairment of Financial Assets The Company checks at each balance sheet date the book values of financial assets other than those at fair value through profit or loss. If there is objective evidence that a financial asset is impaired, the Company makes impairment provision. The Company conducts impairment test on the financial assets that are individually significant; for financial assets that are not individually significant will be tested for impairment individually or by being included into the combination of financial assets that have similar credit risk features. Financial assets (including financial assets that are or

33

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 are not individually significant) that have not suffered from impairment after individual test shall be tested for impairment by being included into the combination of financial assets that have similar credit risk features. Financial assets whose have been recognized for impairment individually shall not be tested for impairment by being included into the combination of financial assets that have similar credit risk features. ① Impairment of Held-to-maturity Investments, Loans and Receivables The financial assets measured by cost or amortized cost write down their carrying value by the estimated present value of future cash flow. The difference is recorded as impairment loss. If there is objective evidence to indicate the recovery of value of financial assets after impairment, and it is related with subsequent event after recognition of loss, the impairment loss recorded originally can be reversed. The carrying value of financial assets after impairment loss reversed shall not exceed the amortized cost of the financial assets without provisions of impairment loss on the reserving date. ② Impairment for Available-for-sale Financial Assets Where the fair value of the equity instrument investment drops significantly or not contemporarily according to the integrated relevant factors, an available-for-trade financial asset is impaired. When an available-for-sale financial asset is impaired, the accumulative losses arising from the decrease of the fair value which was originally included into other comprehensive incomes shall be transferred out and recorded into the current profit or loss; the accumulative losses that are transferred out shall be the balance obtained from the initially obtained costs of the sold financial asset after deducting the principals as taken back, the current fair value and the impairment losses as was recorded into the current profit or loss. If, after an impairment loss has been recognized, there is objective evidence that the value of the financial asset is recovered, and it is objectively related to an event occurring after the impairment loss was recognized, the initial impairment loss can be reversed and the reserved impairment loss on available-for-trade equity instrument is recorded in the profit or loss, the reserved impairment loss on available-for-trade debt instrument is recorded in the current profit or loss. The equity instrument where there is no quoted price in an active market, and whose fair value cannot be reliably measured, or impairment loss on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 shall not be reversed. (4) Recognition Basis and Measurement Method of Transferred Financial Assets The financial assets meeting one of the following conditions shall be de-recognized: ① Where the contractual rights for collecting the cash flow of the said financial asset are terminated; ② Where the said financial asset has been transferred and almost all risks and rewards of ownership of financial assets have been transferred into the transfer-in party; ③ The financial assets have been transferred; although the Company has neither transferred nor retained almost all risks and rewards of ownership of financial assets, the Company has given up the control to the financial assets. If the enterprise has neither retained all the risks and rewards from the financial asset nor control over the asset, the asset is recognized according to the extent it exists as financial asset, and correspondent liability is recognized. The extent of existence refers the level of risk by the financial asset changes the enterprise is facing. For a transfer of a financial asset in its entirety that satisfies the de-recognition criteria, the difference between the book value of the financial asset transferred; and the sum of the consideration received from the transfer and any cumulative gain or loss that has been recorded in other comprehensive incomes, is recorded in current profit or loss. If a part of the transferred financial asset qualifies for de-recognition, the book value of the transferred financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the respective fair values of those parts. The difference between the book value allocated to the part derecognized; and the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recorded in other comprehensive incomes, is recorded in current profit or loss. In case of endorsement transfer of the financial assets to be sold by means of attaching the right of recourse or the financial assets held by the Company, the Company shall determine whether almost all risks and remunerations of the ownership of such financial assets are transferred. If almost all risks and remunerations of the ownership of such financial assets are transferred to the transferee, de-recognize such financial assets; where retained, do not de-recognize such financial assets; where neither transferred nor retained, continue to judge whether the enterprise retains control over such assets, and conduct the accounting treatment according to the principle mentioned in above paragraphs. (5) Classification and Measurement of Financial Liabilities

35

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Financial liabilities shall be classified into the financial liabilities at fair value through profit and loss and other financial liabilities when they are initially recognized. When initial recognition, the financial assets shall be measured at fair value. For the financial liabilities at fair value through profit and loss, the relevant transaction expenses thereof shall be directly recorded into the current profit or loss; for other categories of financial liabilities, the transaction expenses thereof shall be recorded into the initially recognized amount. ① Financial Liabilities at fair value through profit and loss The condition that the transactional financial liability at fair value through profit and loss when it is initially recognized is consistent with the condition that the transactional asset at fair value through profit and loss when it is initially recognized. If the financial liability at fair value through profit and loss is measured subsequently, the profit or loss occurred in the fair value and the relevant dividend and interest expenditure and of such financial liability are recorded into the current profit or loss. ② Other Financial Liabilities Derivative financial liabilities that linked with equity instruments, which do not have a quoted price in an active market and their fair value cannot be measured reliably, is subsequently measured by cost Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from de- recognition or amortization is recognized in profit or loss for the current period. ③ Financial Guarantee Contract Financial guarantee contracts that are not classified as financial liabilities measured by fair value with the changes in fair value recognized in profit or loss are initially recognized at fair value. After the initial recognition, financial guarantee contracts shall be measured at the higher of the amount recognized in accordance with the Accounting Standards for Enterprises No. 13 - Contingencies Subsequent measurement and the initial recognition amount deducted by the accumulative amortization amount determined in accordance with the Accounting Standards for Business Enterprises No. 14 - Revenue. (6) De-recognition of Financial Liabilities The Group de-recognizes a financial liability (or part of it) when the underlying present obligation (or part of it) is discharged or cancelled or has expired. An agreement between the Company (an existing borrower) and existing lender to replace original financial liability with a new financial liability with substantially different terms is

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 accounted for as an extinguishment of the original financial liability and the recognition of a new liability. When the Company de-recognizes a financial liability or a part of it, it recognizes the difference between the carrying amount of the financial liability (or part of the financial liability) de-recognized the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss. (7) Derivative Instruments and Embedded Derivative Instruments Derivative instrument is measured at fair value on contract signing date and accounted by fair value subsequently. Changes of fair value of derivative instrument are included into profit or loss for the period. An embedded derivative is separated from the hybrid instrument, where the hybrid instrument is not designated as a financial asset or financial liability at fair value though profit or loss, and the treated as a standalone derivative if the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract; and a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative. If the Company is unable to measure the embedded derivative separately either at acquisition or at a subsequent balance sheet date, it designates the entire hybrid instrument as a financial asset or financial liability at fair value through profit or loss. (8) Offsetting of Financial Assets and Financial Liabilities Where the Company is entitled to offset the confirmed financial assets and financial liabilities, and the legal rights are executable by now; at the same time, the Company plans netting or simultaneously realizes the financial assets to liquidate the financial liabilities, the financial assets and financial liabilities are listed in the balance sheet with the amount after offsetting each other. In addition, the financial assets and financial liabilities are shown separately in the balance sheet and shall not offset each other. (9) Equity Instruments Equity instrument is any contract that evidences a residual interest in the assets of the Company deducting all liabilities. The Company issues (including re-financing), repurchases, sells or cancels equity instruments for disposal of changes of equity investments. The Company does not recognize the change amount of fair value of the equity instrument. Transaction expenses related to equity investment shall be deducted from equity. The Company distributes the holder of the equity instrument (excluding the dividend

37

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 of share) to decrease the rights and interest of the owner. The Company does not recognize the change amount of fair value of the equity instrument. 10. Receivables Receivables comprise accounts receivable and other receivables, etc. (1) Recognition Criteria of Bad Debt Provisions The Company shall inspect the carrying amount of receivables on the balance sheet date. Provision for impairment is made if there is objective evidence that the receivables are impaired: ① The debtor suffers severe financial difficulty; ② The debtor inviolate contract terms (such as the breach or expiry of the repayment of interests or principals); ③ The debtor is likely to close down or conduct other financial restructuring ④ Other objective evidences that could indicate the impairment of the receivable items. (2) Method for Bad Debt Provisions ① Recognition criteria and method of provision for bad debts for receivables that are individually significant The Company recognizes accounts receivables over RMB 1,000,000 as receivables of individual significance. For an account receivable that is individually significant, the asset is individually assessed for impairment, individually test the financial asset without impairment, including the portfolio of financial assets featured in similar credit risk for impairment test. The financial asset assessed separately with impairment that has been recognized will be excluded from impairment assessment of financial asset portfolio featured in similar credit risk. ② Basis of recognition and calculation and method of assessing provision for bad debts for receivables according to credit risk profile A. Recognition basis of portfolio of credit risk features As for the receivables that are not individually significant and that are individually significant without impairment in the separate test, the Company classifies the financial asset based on the similarity and correlation of credit risk features. Those credits usually reflect the capability of debtor paying all due amounts as per the contract of such assets and are related to the future cash flow measurement of the asset inspected. Recognition basis of different portfolio: Items Recognition basis of portfolio

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Portfolio of related parties Receivables due from related parties within in the consolidation within the scope of scope consolidation Special receivables such as deposits, margins, and payments Portfolio of specific nature related to the issuance of equity securities, etc. Portfolio by aging Receivables for which bad debt provision is made by aging

B. Method of Assessing Bad Debt Provision Recognized Based on Portfolio of Credit Risk Features When impairment test is conducted based on portfolio, the amount of bad debt provision is recognized through historical experience loss, current economic situation and the anticipated loss existing in receivables portfolio as per the structure of receivable portfolio and similar credit risk features (capability of debtor for paying debt pursuant to contract term). Method of assessing bad debt provision of different portfolio: Items Provision method Portfolio of related parties within the scope of consolidation specific identification Portfolio of specific nature specific identification Portfolio by aging Aging analysis

For the portfolio, the aging analysis method is adopted to assess bad debt provision. Proportion of provision of Proportion of provision of Aging receivables (%) other receivables (%) Within 1 year (including 1 year, 0 0 the same below) 1-2 years 30 30 2-3 years 50 50 Over 3 years 100 100

③ The receivables that are individually insignificant but for which provision for bad debts has been individually assessed and provided: For the account receivables not individually significant, the Company assesses the account receivables individually for impairment when are of following characteristics (related party receivables; Receivables in dispute with the other party or involving litigation or arbitration; Clear indications that the debtor is likely to be unable to meet repayment obligations, such as receivables, etc.), if there is objective evidence indicating the impairment, the impairment loss is recognized at the difference between the present value of future cash flow less the carrying amount. (3) Reversal of Bad Debt Provisions If there are objective evidences showing that the value of the receivables has

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 been recovered, and the receivables is objectively related to the events occurring after the confirmation of the loss, the impairment loss recognized previously is reversed and recognized through profit or loss for the current period. However, the book value after the reversal shall not exceed the amortized cost of the receivables on the date of reversal. 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. Inventories are required to be measured at the lower of cost and net realizable value on the balance sheet date. If the cost of inventories is higher than the net realizable value, the provision for the loss on decline in value of inventories shall be made. The provision for the loss on decline in value of inventory is assessed based on the difference between the cost of 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.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

(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 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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. 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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. 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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 attributable 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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 attributable share of profits offsets against its attributable share of the unrecognized losses, resume recognizing its attributable 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.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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: Depreciation Depreciation Residual Annual depreciation Category Method period (years) rate (%) rate (%) Straight-line Buildings 40 5 2.38 method Straight-line Machinery equipment 5, 10 5 9.50, 19.00 method Straight-line Transportation equipment 8 5 11.88 method Straight-line Others 3, 5 5 19.00, 31.67 method 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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 each project 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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 recognised 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 recognised in full as fixed assets. The intangible assets shall be initially measured at cost. The expenses incurred on

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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 judgment 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 method, 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, truckage 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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 to settle 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

(1) Revenue from the Sale of Goods 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 recognised 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 recognised to the extent of costs incurred that are expected to be recoverable and the service costs incurred are recognised as expenses for the current period. Where the costs incurred are not expected to be recoverable, no service revenue is recognised. 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 accrual basis.

57

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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

58

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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

59

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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.

60

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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

61

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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,

62

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 On June 15, 2018, the Ministry Of Finance issued the "notice on the revision and issuance of the format of general financial statements of enterprises for 2018" (Caijing [2018] No. 15), requiring enterprises implementing the Accounting Standards for Enterprises when prepare financial statements, and in accordance with the accounting standards for enterprises and the requirements of the notice. Significant influence of above changes in accounting policies of the Company: Amount after Amount before Item after changes Item before changes changes changes Note receivable and Notes receivable 1,161,270.00 1,422,072,673.72 account receivable Accounts receivable 1,420,911,403.72 Interest receivable

Other account receivable 272,549,027.20 Dividends receivable Other accounts 272,549,027.20 receivable

Note payable and account Notes payable 595,972,612.79 payable Accounts payable 595,972,612.79 Interest payable 34,571,686.48

Other account payable 307,243,122.59 Dividends payable 5,843,848.23 Other accounts 266,827,587.88 payable Long-term accounts 91,850,977.73 payable Long-term account payable 92,650,977.73 Accounts payable 800,000.00 special funds Administration expense 475,788,546.92 Research and development Administration expense 501,139,666.98 25,351,120.06 expense Note: Above data include the amount on December 31, 2017 of the merger of enterprise Mainline Health Technology (Beijing) Co., Ltd. which under the common control that took place this year. (2) Changed in significant accounting estimates The Company has no changes in accounting estimates during the reporting period. 27．Significant Accounting Judgments and Estimates 63

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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 fields 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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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) Impairment of Available-for-sale Financial Assets The determination of the Company whether or not an available-for-sale financial asset shall be impaired depends on the judgments and assumptions of management to a great extent. Such judgment and assumption will determine whether to confirm its impairment loss in the income statements. When making judgments and assumptions, the Company needs to assess the extent to which the fair value is lower than the cost and the duration of the same, as well as the financial status and short-term business outlook of the investee, including industry conditions, technological transformation, credit ratings, default rate and counterpart risk. (6) 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.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 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. (7) 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. (8) 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. (9) Income Taxes

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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.

V. Taxes 1. Main Tax Types and Tax Rate Types of Tax Specified tax rate VAT on sales is calculated at 17%、16% or 6% on revenue generated by the general taxpayer and paid after deducting Value added tax("VAT") input VAT on purchases. For the small-scale taxpayer, the VAT is calculated at 3% on revenue. Urban maintenance and Calculated and paid at 7%, 5% or 1% on the payment of construction tax turnover tax. Corporate income tax Please refer the details below.

The original 17% tax rate was used on VAT taxable sales or imported goods of the Company. According to the requirements of (Caishui [2018] No. 32), the applicable tax rate will be adjusted to 16% from 1 May, 2018. 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 implementation of levying VAT in place of Business Tax, the Company’s subsidiaries are exempted from value added tax and surcharges for revenue generated

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 in medical treatment within the business scope of its Practice License of Medical Institution. (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 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 2018. 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 2018. 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 District 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 Onehealth Physical Examination Management Co., Ltd., Chongqing Onehealth Physical Examination Management Co., Ltd., Xi’an Meinian Onehealth Physical Examination Management Co., Ltd., Xi’an Qujiang New District Onehealth Outpatient Co., Ltd., Lanzhou Meinian Onehealth Healthcare Management Co., Ltd., Lanzhou Meinian Onehealth Jinmao Healthcare

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Management Co., Ltd., Xinjiang Meinian Onehealth Healthcare Management Co., Ltd., Chengdu Ciming Checkup Management Co., Ltd., Tongliao Ciming Health Management Co., Ltd., Urumqi Huarui Tianmei Health Management Co., Ltd., Xinjiang Puhuitai Health Management Co., Ltd., Puer Meinian Onehealth Physical Examination Center Co., Ltd., Gunagyuan Meinian Onehealth Technology 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 Healthcare 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 2014 to 2015 and enjoys a reduction of 50% of corporate income tax from 2016 to 2018. 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 of central Xinjiang” (New Caifashui (2011) No. 51), the Company’s subsidiary Hami Meinian Onehealth Healthcare 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 2018, the 40% share of the local share of corporate income tax has been approved by the local tax bureau. According to the requirement of the “Notice of the Ministry of Finance and the State Administration of Taxation on further expanding the scope of preferential income tax policies for small and low-profit enterprises” (Caishui (2018) No. 77), the Company’s subsidiary Hunan Meinian Onehealth Management Co., Ltd belong to the scope of

69

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

“further expand preferential income tax policies for small businesses with small profits”, and has already received relevant documents from local tax bureau. 20% will be used as the enterprise income tax rate and 50% of the income shall be included in the taxable income amount.

VI. Notes to Items of Consolidated Financial Statements Unless otherwise indicated in the below notes (including notes to main items of financial statements of the Company), the opening balance refers to January 1, 2018, and the closing balance refers to December 31, 2018; the current period refers to year 2018 and the previous period refers to year 2017. 1. Cash and Cash equivalents Items Closing balance Opening balance Cash on hand 6,076,636.71 5,075,327.56 Cash in bank 2,384,054,158.55 2,384,802,447.99 Other currency funds 104,312,986.94 240,464.14 Total 2,494,443,782.20 2,390,118,239.69 Including: total amount of deposit abroad 10,225,716.28 9,909,709.85

Note 1: The Company's subsidiary, Meinian Onehealth Management Co., Ltd., deposited RMB 17,230,000.00 as a security deposit at China Merchants Bank Shanghai Branch, replacing the 16.00% equity in Hainan Meinian Health Hospital Co., Ltd. in the bank's equity pledge loan in 2016; then Meinian Onehealth also depositing RMB 13,000,000.00 as a deposit at the China Merchants Bank Shanghai Branch to replace the 62.00% equity of Xiamen Meinian Health Management Co., Ltd. in the bank's equity pledge loan in 2017; Meinian Onehealth deposited RMB 7,800,000.00 as a deposit in China Merchants Bank Shanghai Branch, which replace the 16.90% equity of Taian Meinian Onehealth Management Co., Ltd. in the bank's equity pledge loan in 2016. 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: Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, deposited RMB 15,430,000.00 as a bank acceptance bill deposit at Standard Chartered Bank (China) Co., Ltd. Shanghai Branch. Note 4: Ciming Health Examination Management Group Wuhan Co., Ltd., a

70

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 subsidiary of the Company, has deposited RMB 500,000.00 as security deposit in the Wuhan branch of China Minsheng bank as a guarantee to fully fulfill its obligations under the 2018 employee physical examination contract of Wuhan steel city branch of China construction bank co., LTD. Note 5: Tianjin Meinian Investment Management Co., LTD., a subsidiary of the Company, has had its bank deposit of RMB 600.00 frozen for ETC business. 2. Notes receivable and accounts receivable Items Closing balance Opening balance Notes receivable 1,161,270.00 Accounts receivable 1,969,487,061.48 1,420,911,403.72 Total 1,969,487,061.48 1,422,072,673.72

(1) Notes receivable Bills receivable classification: Items Closing balance Opening balance Bank acceptance bill 1,161,270.00 Commercial acceptance bill Total 1,161,270.00

(2) Accounts receivable ① Receivables disclosed by category Closing balance

Type Book balance Bad debt provision Proportion Proportion Book value Amount Amount (%) (%) Receivables that are individually significant and for which bad debt 2,947,943.16 0.14 2,947,943.16 100.00 provision has been individually assessed Receivables which bad debt provision has been 2,043,547,411.97 99.85 74,060,350.49 3.62 1,969,487,061.48 assessed by portfolio of credit risk features Receivables that are individually insignificant and for which bad debt 84,998.00 0.01 84,998.00 100.00 provision has been individually assessed Total 2,046,580,353.13 100.00 77,093,291.65 3.77 1,969,487,061.48

(Cont.)

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Opening balance

Type Book balance Bad debt provision Proportion Proportion Book value Amount Amount (%) (%) Receivables that are individually significant and for which bad debt 2,947,943.16 0.20 2,947,943.16 100.00 provision has been individually assessed Receivables which bad debt provision has been 1,465,749,487.50 99.79 44,838,083.78 3.06 1,420,911,403.72 assessed by portfolio of credit risk features Receivables that are individually insignificant and for which bad debt 191,329.00 0.01 191,329.00 100.00 provision has been individually assessed Total 1,468,888,759.66 100.00 47,977,355.94 3.27 1,420,911,403.72

A. 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 Reason of Receivable 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 -- --

B. Receivables for which bad debt provision has been assessed by aging analysis method in portfolio Closing balance Aging Receivables Bad debt provision Proportion (%) Within 1 year 1,872,864,325.65 1 to 2 years 120,794,993.08 36,238,497.92 30.00 2 to 3 years 24,132,481.46 12,066,240.79 50.00 3 to 4 years 9,783,392.73 9,783,392.73 100.00 4 to 5 years 9,686,842.75 9,686,842.75 100.00 More than 5 years 6,285,376.30 6,285,376.30 100.00 Total 2,043,547,411.97 74,060,350.49 —

② Provision for bad debts accrued, recovered or reversed in the current year The amount of bad debt provisions accrued for the current year is RMB 27,827,474.89 and the bad debt provisions recovered or reversed is RMB 0.00. ③ Receivables actually written off in the current year

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Amount written-off Receivables actually written off 141,137.20

④ Receivables from the top five debtors by balances The Company’s total receivable from the top five debtors is RMB 176,924,631.51, accounting for 8.64% of the total balance of receivables at year end. The corresponding total balance of provisions for bad debt is RMB 2,392,802.06. 3. Advanced to customers (1) Presented by ageing Closing balance Opening balance Aging Amount Proportion (%) Amount Proportion (%) Within 1 year 188,459,821.69 93.34 109,860,437.43 90.24 1 to 2 years 10,354,995.12 5.13 9,436,022.40 7.75 2 to 3 years 2,251,243.39 1.11 1,759,392.60 1.45 More than 3 years 844,788.98 0.42 682,929.22 0.56 Total 201,910,849.18 100.00 121,738,781.65 100.00

(2) Prepayments to the top five suppliers by balance The total amount of top five prepayment by balance is RMB 27,702,205.41, accounting 13.72% of the total at year end. 4. Other receivables Items Closing balance Opening balance Interest receivable Dividends receivable 2,506,849.32 Other receivables 394,125,296.65 272,549,027.20 Total 396,632,145.97 272,549,027.20

(1) Dividends receivable Items Closing balance Opening balance Nantong Meizhao Meinian Health Industry M&A 2,506,849.32 Investment Fund (Limited Partnership) Total 2,506,849.32

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

(2) Other receivables ① Other receivables classification

Closing balance

Type Book balance Bad debt provision Proportion Proportion Book value Amount Amount (%) (%) Other receivables that are individually significant and for which bad debt 2,587,300.00 0.64 2,587,300.00 100.00 provision has been accrued individually Other receivables for which bad debt provision has been accrued by portfolio of credit risk features (i) Portfolio of specific nature 221,552,567.20 55.13 221,552,567.20

(ii) Portfolio of aging 177,450,666.69 44.15 4,877,937.24 2.75 172,572,729.45

Subtotal 399,003,233.89 99.28 4,877,937.24 1.22 394,125,296.65 Other receivables that are individually insignificant but for which bad debt 330,000.00 0.08 330,000.00 100.00 provision has been accrued individually Total 401,920,533.89 100.00 7,795,237.24 1.94 394,125,296.65

(Cont.) Opening balance

Type Book balance Bad debt provision Proportion Proportion Book value Amount Amount (%) (%) Other receivables that are individually significant and for which bad debt 2,587,300.00 0.92 2,587,300.00 100.00 provision has been accrued individually Other receivables for which bad debt provision has been accrued by portfolio of credit risk features (i) Portfolio of specific nature 159,768,112.08 56.55 159,768,112.08

(ii) Portfolio by aging 119,788,238.60 42.41 7,007,323.48 5.85 112,780,915.12

Subtotal 279,556,350.68 98.96 7,007,323.48 2.51 272,549,027.20 Other receivables that are individually insignificant but for which bad debt 330,000.00 0.12 330,000.00 100.00 provision has been accrued individually Total 282,473,650.68 100.00 9,924,623.48 3.51 272,549,027.20

A. Other receivables that are individually significant and for which bad debt provision has been accrued individually at the end of year Closing balance Other receivables Other Bad debt Proportion of Reason of receivables provision provision provision Wang Shifang 2,587,300.00 2,587,300.00 100.00 Uncollectable

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Closing balance Other receivables Other Bad debt Proportion of Reason of receivables provision provision provision Total 2,587,300.00 2,587,300.00 — —

B. Other receivables which bad debt provision has been accrued by method of aging analysis in the combination Closing balance Ageing Other receivables Bad debt provision Proportion (%) Within 1 year 168,529,779.79 1 to 2 years 2,057,538.29 617,261.50 30.00 2 to 3 years 5,205,345.76 2,602,672.89 50.00 3 to 4 years 181,340.33 181,340.33 100.00 4 to 5 years 325,757.78 325,757.78 100.00 More than 5 years 1,150,904.74 1,150,904.74 100.00 Total 177,450,666.69 4,877,937.24 —

② Category of other receivables as per the nature of amount Nature of amount Closing Book Balance Opening Book Balance Deposit 138,713,022.83 105,305,578.27 Inter-company transactions 96,292,868.21 86,157,381.41 Margin 82,839,544.37 54,345,645.81 Stock repurchase 46,484,978.67 Reserve fund 11,043,270.63 9,523,168.72 Equity transfer 7,344,000.00 12,544,000.00 Others 19,202,849.18 14,597,876.47 Total 401,920,533.89 282,473,650.68

③ Conditions of bad debt provision accrued, recovered or reversed for the current year The amount of bad debt provisions accrued for the current year is RMB - 2,304,688.25 and the bad debt provisions recovered or reversed is RMB 0.00. ④ Other receivables actually written off in the current year Items Amount written-off Receivables actually written off 17,174.00

⑤ Other receivables with top five closing balances as collected as per the debtors

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Bad debt Proportion to provision Name of company Nature Closing balance Ageing total other Closing receivable (%) balance Haitong Securities Co., Stock repurchase 46,484,978.67 Within 1 year 11.57 Ltd. Celebrity Health Deposit for equity 26,500,000.00 Within 1 year 6.59 Industry Group Co., Ltd. transfer Deposit for equity Wang Gang 8,000,000.00 1 to 2 years 1.99 transfer Deposit for equity Zhang Hao 7,000,000.00 1 to 2 years 1.74 transfer Yunnan Yuxi Health Deposit for equity Industry Investment 7,000,000.00 Within 1 year 1.74 transfer Co., Ltd. Total —— 94,984,978.67 —— 23.63

5. Inventories Closing balance Items Provisions for Book balance Book value decline in value Reagents and consumables 123,802,239.96 123,802,239.96 Merchandise inventory 2,706,789.93 2,706,789.93 Low value consumables Total 126,509,029.89 126,509,029.89

(Cont.) Opening balance Items Provisions for Book balance Book value decline in value Reagents and consumables 85,749,255.41 85,749,255.41 Merchandise inventory 1,313,051.49 1,313,051.49 Low value consumables 126,255.52 126,255.52 Total 87,188,562.42 87,188,562.42

6. Non-current assets due within one year Items Closing balance Opening balance Remarks Long-term receivables due within one Note VI, 9 for 360,853,015.93 173,774,268.93 year details. Total 360,853,015.93 173,774,268.93

7. Other current assets Items Closing balance Opening balance Input tax to be deducted 253,900,568.64 163,950,711.94 Financing products from bank 2,000,000.00 32,048,780.83 Prepaid enterprise income tax 661,430.14 965,979.85

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Closing balance Opening balance Total 256,561,998.78 196,965,472.62

8. Available-for-sale financial assets (1) Condition of available-for-sale financial assets

Closing balance Opening balance Items Impairment Impairment Book balance Book value Book balance Book value provision provision Available-for-sale debt instruments Available-for-sale 1,077,054,315.70 1,077,054,315.70 576,626,206.70 576,626,206.70 equity Instrument Including: Measured at fair value Measured at 1,077,054,315.70 1,077,054,315.70 576,626,206.70 576,626,206.70 cost Others

Total 1,077,054,315.70 1,077,054,315.70 576,626,206.70 576,626,206.70

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

(2) Available-for-sale financial assets measured at cost at the end of the year

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Nantong Meifu health industry investment partnership (limited 228,000,000.00 228,000,000.00 Note 1 3,040,000.00 partnership) Shanghai Jianyi Investment Center (Limited Partnership) 50,000,000.00 50,000,000.00 Note 2 5,069,444.45 Nantong Meizhao Meinian Health Industry M&A Investment 50,000,000.00 50,000,000.00 Note 3 4,356,164.39 Fund (Limited Partnership) Fuzhou Meinian Medical Investment Partnership (Limited 35,000,000.00 35,000,000.00 Note 4 Partnership) Shanghai Insurance Exchange Co., Ltd. 30,000,000.00 30,000,000.00 1.34 Shanghai Meinian Onehealth Phase I Equity Investment 64,900,000.00 37,900,000.00 27,000,000.00 Note 5 21,520,900.00 Fund Partnership (Limited Partnership) 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

Shanghai Tianguyuan Health Technology Co., Ltd. 12,000,000.00 12,000,000.00 11.7 175,210.02

Shenzhen Meizhao Health Management Co., Ltd. 2,650,000.00 7,350,000.00 10,000,000.00 10 Zhanjiang Shangde Medical Doctor Ciming Health 9,500,000.00 9,500,000.00 19 Management Co., Ltd. Guangzhou Meiyi Medical Technology Co., Ltd. 9,310,000.00 9,310,000.00 12.07

Chongqing Ciming Aoya Health Management Co., Ltd. 5,850,000.00 3,150,000.00 9,000,000.00 18

Quanzhou Fengze Meinian Onehealth Management Co., Ltd. 8,740,000.00 8,740,000.00 19 Wuhan Meinian Onehealth Technology Management Co., 8,100,000.00 8,100,000.00 15 Ltd.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year 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

Zhuhai Meinian Onehealth & Health Management Co., Ltd. 2,700,000.00 2,880,000.00 5,580,000.00 18

Zhengzhou Meizhao Health Medical Management Co., Ltd. 5,400,000.00 5,400,000.00 10.8 Taizhou Meizhao Health Checkup Center (general 5,160,000.00 5,160,000.00 11.88 partnership) Liaoyang Meizhao Health Management Co., Ltd. 5,160,000.00 5,160,000.00 19

Shanghai Meikai Clinic Co., Ltd. 5,000,000.00 5,000,000.00 10.39

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

Wuxi Meizhao Clinic 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

Nanjing Meiyi Clinic Co., Ltd. 4,816,000.00 4,816,000.00 17.2

Fujian Meinian Onehealth Management Co., Ltd. 4,500,000.00 4,500,000.00 15

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

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 4,200,000.00 15

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Wuxi Meihua Clinic Co., Ltd. 4,151,900.00 4,151,900.00 19

Chengdu Meizhao Clinic Co., Ltd. 4,150,000.00 4,150,000.00 10

Huai'an Mingze Meinian Onehealth Management Co., Ltd. 2,647,000.00 1,500,000.00 4,147,000.00 15

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 3,900,000.00 19.5

Yulin Ciming Clinic Co., Ltd. 1,170,000.00 2,730,000.00 3,900,000.00 19.5

Jiujiang Meinian OnePhysical Examination Center Co., Ltd. 2,280,000.00 1,520,000.00 3,800,000.00 19

Zhangzhou Meinian Onehealth Hospital Co., Ltd. 4,580,000.00 780,000.00 3,800,000.00 19

Wenzhou Meinian Onehealth Management Co., Ltd. 3,800,000.00 3,800,000.00 19

Cixi Meinian Comprehensive Clinic Co., Ltd. 3,600,000.00 3,600,000.00 18

Baotou Meinian Onehealth Aiputuo Integrated Clinic Co., Ltd. 3,600,000.00 3,600,000.00 8.6

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 Qinhuangdao MeinNian Onehealth and Health Examination 3,510,000.00 3,510,000.00 19.5 Management Co., Ltd. Benxi Meinian Onehealth Management Co., Ltd. 3,510,000.00 3,510,000.00 19.5

Linhai Meinian Risheng Hospital Co., Ltd. 3,500,000.00 3,500,000.00 10

Shenzhen Yierkang Health Management Co., Ltd. 3,500,000.00 3,500,000.00 4.9

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Xiamen Yincheng Meinian Onehealth Management Co., Ltd. 3,420,000.00 3,420,000.00 19

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 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

Shenzhen Meiyu 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 Clinic 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 Shangrao Meikang Medical Health Examination Center Co., 3,264,700.00 3,264,700.00 15 Ltd. Shaoguan Meinian Onehealth & Health Management Co., 2,040,000.00 1,200,000.00 3,240,000.00 18 Ltd. Qingyuan Meinian Onehealth & Health Management Co., Ltd. 3,240,000.00 3,240,000.00 18

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

Panjin Meinian Onehealth & Health Management Co., Ltd. 3,120,000.00 3,120,000.00 19.5

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Lianyungang Meinian Onehealth & Health Management Co., 3,120,000.00 3,120,000.00 19.5 Ltd. Chengdu Xindu Meinian Onehealth and Health Examination 3,120,000.00 3,120,000.00 19.5 Clinic Co., Ltd. Chengdu Shuangliu MeinNian Onehealth and Health 3,120,000.00 3,120,000.00 19.5 Examination Clinic Co., Ltd. Chengdu Pidu District Meinian Onehealth Management Co., 3,120,000.00 3,120,000.00 19.5 Ltd. Dujiangyan Meinian Health & Onehealth Management Co., 3,120,000.00 3,120,000.00 19.5 Ltd. Lincang Meinian Onehealth Examination Center Co., Ltd. 3,120,000.00 3,120,000.00 19.5

Baicheng Ciming Comprehensive Out-patient Clinic Co., Ltd. 3,050,000.00 3,050,000.00 19

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

Guilin Meinian Health & Onehealth Management Co., Ltd. 3,020,000.00 3,020,000.00 13.35

Suizhou Meinian Health & Onehealth Management Co., Ltd. 3,000,000.00 3,000,000.00 15

Chifeng Meinian Onehealth & Health Management Co., Ltd. 3,000,000.00 3,000,000.00 15

Tianjin Meize Clinic Co., Ltd. 3,000,000.00 3,000,000.00 10

Guangzhou Aoya Health Management 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

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

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

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

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Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Guizhou Meizhao Health Management Co., Ltd. 2,950,000.00 2,950,000.00 5

Kunshan Huatai Clinic Co., Ltd. 2,945,000.00 2,945,000.00 19

Shengzhou Meinian Onehealth Technology Co., Ltd. 2,930,800.00 2,930,800.00 15.99

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

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

Fuqing Meinian Onehealth Management Co., Ltd. 2,880,000.00 2,880,000.00 18

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

Linfen Meinian Health Management Consulting Co., Ltd. 2,880,000.00 2,880,000.00 16

Changzhou Meinian Onehealth Clinic Co., Ltd. 2,850,000.00 2,850,000.00 19

Sanmenxia Meinian Onehealth Management Co., Ltd. 2,850,000.00 2,850,000.00 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 2,850,000.00 19

Xining Meinian Onehealth & Health Management Co., Ltd. 2,850,000.00 2,850,000.00 19

Nanchong Qichen Health Management Co., Ltd. 1,425,000.00 1,425,000.00 2,850,000.00 19

Suzhou Meinian Onehealth & Health Management Co., Ltd. 2,850,000.00 2,850,000.00 19 Dalian Meinian Health Yuexiang Comprehensive Clinic Co., 2,850,000.00 2,850,000.00 19 Ltd. Jianyang Meinian Onehealth Management Co., Ltd. 2,850,000.00 2,850,000.00 19

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Ya'an Meinian Health Management Co., Ltd. 2,850,000.00 2,850,000.00 19

Yichang Meinian Health Management Co., Ltd. 2,809,100.00 2,809,100.00 19 Hangzhou Xiaoshan Meinian Jincheng Comprehensive Clinic 2,700,000.00 2,700,000.00 18 Co., Ltd. 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

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

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

Fuzhou Meinian Health Management Co., Ltd. 2,700,000.00 2,700,000.00 18 Poyang County Changjian Health Examination Center Co., 2,700,000.00 2,700,000.00 18 Ltd. Wulanchabu Meinian Onehealth & Health Management Co., 2,700,000.00 2,700,000.00 18 Ltd. Jiuquan Meinian Onehealth & health Management Co., Ltd. 2,700,000.00 2,700,000.00 18 Chongqing Meizhao Meinian Onehealth Management Co., 2,700,000.00 2,700,000.00 18 Ltd. Xishuangbanna Meinian Onehealth Examination Center Co., 2,700,000.00 2,700,000.00 18 Ltd. Guangshui Meinian Onehealth Management Co., Ltd. 2,625,000.00 2,625,000.00 19 Tianjin Nankai District Meizhao Health Examination Center 2,590,000.00 2,590,000.00 19 Co., Ltd.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Lhasa Meinian Onehealth & Health Management Co., Ltd. 2,560,000.00 2,560,000.00 16

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

Guangdong Meiciaoya Health Management Co., Ltd. 2,500,000.00 2,500,000.00 10 Ningbo Beilun Meijian Integrated Traditional Chinese and 2,420,000.00 2,420,000.00 19 Western Medicine Clinic Zhangjiajie Meinian Onehealth 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

Maanshan 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 Qiannanzhou Meinian Onehealth & Health Management Co., 2,400,000.00 2,400,000.00 16 Ltd. Bijie Meinian Onehealth & Health Management Co., Ltd. 2,400,000.00 2,400,000.00 16 Qianxinanzhou Midea OnePhysical Examination 2,400,000.00 2,400,000.00 16 Management Co., Ltd. Shangqiu Meinian Onehealth Management Co., Ltd. 2,400,000.00 2,400,000.00 16

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

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

Shantou Meinian Health Management Co., Ltd. 2,400,000.00 2,400,000.00 16 Yangjiang Meinian Onehealth & Health Management Co., 2,400,000.00 2,400,000.00 16 Ltd. Jiangmen Meinian Onehealth & Health Management Co., Ltd. 2,400,000.00 2,400,000.00 16

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Huizhou Meinian Onehealth & Health Management Co., Ltd. 2,400,000.00 2,400,000.00 16

Baoding Meinian Onehealth Clinic Co., Ltd. 2,400,000.00 2,400,000.00 16

Cangzhou Meinian Onehealth Clinic Co., Ltd. 2,400,000.00 2,400,000.00 16

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

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

Neijiang Meinian Onehealth & 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

Qiandongnanzhou Ciming Health Management Co., Ltd. 2,110,000.00 290,000.00 2,400,000.00 19

Yancheng Meinian Onehealth Management Co., Ltd. 2,400,000.00 2,400,000.00 16 Yongzhou Meinian Onehealth & Health Management Co., 2,400,000.00 2,400,000.00 16 Ltd. Guangdong Huanyue Health Medical Co., Ltd. 2,400,000.00 2,400,000.00 16

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

Qujing Meinian Health Service Co., Ltd. 2,400,000.00 2,400,000.00 16

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

Zhenjiang Meinian Health Management Co., Ltd. 2,340,000.00 2,340,000.00 19

Qionglai Meinian Onehealth Examination Clinic Co., Ltd. 2,340,000.00 2,340,000.00 19.5

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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Fuzhou Ciming Aoya Health Management Co., Ltd. 2,295,000.00 2,295,000.00 15

Nanchong Meinian Health & Health Management Co., Ltd. 2,280,000.00 2,280,000.00 19

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

Fuxin Meinian Health & Health Management Co., Ltd. 2,250,000.00 2,250,000.00 15

Sanming Meinian Health Management Co., Ltd. 2,250,000.00 2,250,000.00 15 Foshan Nanhai Meinian Onehealth & health Management 2,250,000.00 2,250,000.00 15 Co., Ltd. Zhangzhou Meinian Health Management Co., Ltd. 2,200,000.00 2,200,000.00 17

Anqing Meinian Health Management Co., Ltd. 2,050,000.00 2,050,000.00 19.5 Tianjin Heping District Meinian Meijia Health Management 2,000,000.00 2,000,000.00 10 Co., Ltd. Hangzhou Meishu Comprehensive Clinic Co., Ltd. 2,000,000.00 2,000,000.00 19.5

Lishui Meinian Onehealth Examination Management Co., Ltd. 2,000,000.00 2,000,000.00 19.5 Guangzhou Huadu District Meinian Onehealth Management 2,000,000.00 2,000,000.00 10 Co., Ltd. Dongguan Meinian Health Medical Technology Co., Ltd. 2,000,000.00 2,000,000.00 10

Zhangjiakou Meinian Health Clinic Co., Ltd. 2,000,000.00 2,000,000.00 19.5

Qingyang Meinian Onehealth Health Management Co., Ltd. 1,950,000.00 1,950,000.00 15

Huanggang Meinian Health Management Co., Ltd. 1,920,000.00 1,920,000.00 16

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

87

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Dazhou Meinian Onehealth Management Co., Ltd. 1,920,000.00 1,920,000.00 16

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

Anxi Meinian Onehealth Management Co., Ltd. 1,910,000.00 1,910,000.00 17.1

Shanghai Meihao Health Management Co., Ltd. 1,830,000.00 1,830,000.00 16

Xuchang Meinian Onehealth & Health Management Co., Ltd. 855,925.70 970,000.00 1,825,925.70 19

Jingzhou Meinian Onehealth Management Co., Ltd. 1,800,000.00 1,800,000.00 15

Zhumadian Meinian Onehealth Technology Co., Ltd. 1,800,000.00 1,800,000.00 15

Zaozhuang Meinian Onehealth Checkup Service Co., Ltd. 1,800,000.00 1,800,000.00 15

Shenzhen Meiyang Health 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

Panzhihua Meinian Onehealth Technology Co., Ltd. 1,800,000.00 1,800,000.00 15

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 Guangzhou Meinian Onehealth Hospital Management Co., 1,800,000.00 1,800,000.00 10 Ltd. Shihezi City Meinian Onehealth & Health Management Co., 1,800,000.00 1,800,000.00 15 Ltd. 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

88

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Chengdu Jinniu Meinian Onehealth Management Consulting 1,800,000.00 1,800,000.00 10 Co., Ltd. Yunnan Ciming Health Service 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

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

Zunyi Meinian Onehealth Industry Hospital Co., Ltd. 1,750,000.00 1,750,000.00 5

Xinyu Meiyin Onehealth Checkup Co., Ltd. 1,750,000.00 1,750,000.00 16

Fuzhou Changle District Meici Health Management Co., Ltd. 1,710,000.00 1,710,000.00 19

Nanping Meinian Onehealth Management Co., Ltd. 1,710,000.00 1,710,000.00 19

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

Ji'an Meinian Onehealth Checkup Co., Ltd. 1,680,000.00 1,680,000.00 15 Tangshan Meinian Onehealth and Onehealth Examination 1,620,000.00 1,620,000.00 10.13 Management Co., Ltd. Dezhou Meinian Onehealth Checkup Management Co., Ltd. 1,600,000.00 1,600,000.00 16

Zigong Meinian Onehealth Checkup Hospital Co., Ltd. 1,600,000.00 1,600,000.00 16

Pingliang Meinian Onehealth & Health Management Co., Ltd. 1,500,000.00 15,000.00 1,515,000.00 15

Hangzhou Meixin Medical Outpatient Co., Ltd. 1,500,000.00 1,500,000.00 10

Yiwu Meinian Onehealth Management Co., Ltd. 1,500,000.00 1,500,000.00 10 Huainan Meinian Onehealth & Wellness Management Co., 1,500,000.00 1,500,000.00 15 Ltd.

89

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Chaoyang Meinian Onehealth Management Co., Ltd. 1,500,000.00 1,500,000.00 15

HanzhongMeinianOnehealth Management Service Co., Ltd. 1,500,000.00 1,500,000.00 15

Yangxin Meinian Onehealth Checkup Management Co., Ltd. 1,500,000.00 1,500,000.00 10 Guangzhou Panyu District Meinian Health Management 1,500,000.00 1,500,000.00 10 Service Co., Ltd. Yunfu Meinyian Health Management Co., Ltd. 1,500,000.00 1,500,000.00 10

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

Luoyang Ciming Health Management Co., Ltd. 1,500,000.00 1,500,000.00 10 Jilin Changyi District Meinian Onehealth Technology 1,409,490.00 1,409,490.00 8.71 Management Co., Ltd. Haining Meinian Health Checkup Center Co., Ltd. 1,400,000.00 1,400,000.00 17

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

Luohe Meinian Onehealth Management Co., Ltd. 1,200,000.00 1,200,000.00 10

Sheqi Meinian Onehealth Management Co., Ltd. 1,170,000.00 1,170,000.00 19.5 Liuzhou Meinian Onehealth & Wellness Management Co., 1,000,000.00 1,000,000.00 10 Ltd. Taizhou Meinian Onehealth Management Co., Ltd. 1,000,000.00 1,000,000.00 10

Anyang Meinian Onehealth Management Co., Ltd. 1,000,000.00 1,000,000.00 10 Nanyang Meinian Onehealth & Onehealth Technology Co., 1,000,000.00 1,000,000.00 10 Ltd. Rizhao Meinian Onehealth Checkup Co., Ltd. 1,000,000.00 1,000,000.00 10

90

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Tianjin Binhai New Area Ciai Outpatient Co., Ltd. 1,000,000.00 1,000,000.00 10 Yingkou Meinian Onehealth Technology Onehealth 920,000.00 920,000.00 16 Management Co., Ltd. Jiujiang Meinian Onehealth & Wellness Management Co., 900,000.00 900,000.00 15 Ltd. Urumqi Meinian Onehealth Outpatient (Limited) 900,000.00 900,000.00 15

Zhoukou Meinian Onehealth & Health Management Co., Ltd. 800,000.00 800,000.00 10

Ordos City Meinian Onehealth Management Co., Ltd. 800,000.00 800,000.00 10

Chuxiong Meinian Onehealth Checkup Hospital Co., Ltd. 800,000.00 800,000.00 10

Kashgar Year Onehealth & Health Management Co., Ltd. 700,000.00 700,000.00 10

Jiaozuo Meinian Onehealth & Health Service Co., Ltd. 500,000.00 500,000.00 10 Luliang Onehealth Technology Onehealth Management Co., 500,000.00 500,000.00 10 Ltd. Bazhou Meinian Onehealth Checkup Center Co., Ltd. 500,000.00 500,000.00 5

Nanning Meiyoukang Health Management Co., Ltd. 500,000.00 500,000.00 10 Jincheng Meinian Onehealth Technology Health Management 350,000.00 350,000.00 10 Co., Ltd. Chongqing Banan Ciming Comprehensive Outpatient Co., 150,000.00 150,000.00 1 Ltd. Chengdu Jinjiang Meinian Onehealth Weikang Medical 13,300,000.00 13,300,000.00 Outpatient Branch Co., Ltd. Foshan Meinian Onehealth Checkup Management Co., Ltd. 6,300,000.00 6,300,000.00

91

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Beijing Meinian Meifu Outpatient Co., Ltd. 5,000,000.00 5,000,000.00

Xinjiang Puhuitai Health Management Co., Ltd. 4,222,200.00 4,222,200.00

Huludao Meinian Onehealth Management Co., Ltd. 3,800,000.00 3,800,000.00

Xiangtan Meinian Onehealth & Health Management Co., Ltd. 3,600,000.00 3,600,000.00

JinzhongMeinianOnehealth Management Co., Ltd. 2,700,000.00 2,700,000.00

Handan City Meinian Onehealth Management Co., Ltd. 2,400,000.00 2,400,000.00 Puer Meinian Onehealth Physical Examination Center Co., 2,400,000.00 2,400,000.00 701,537.61 Ltd. Zhanjiang Meinian Onehealth Management Co., Ltd. 2,332,291.00 2,332,291.00

Zhongshan Meinian Onehealth Management Co., Ltd. 2,280,000.00 2,280,000.00

Dandong Meinian Onehealth & Health Management Co., Ltd. 2,280,000.00 2,280,000.00

Dali Meinian Physical Examination Hospital Co., Ltd. 2,250,000.00 2,250,000.00

Heyuan Meiyin Onehealth Management Co., Ltd. 1,920,000.00 1,920,000.00

Wuhan Meinian Health Management Co., Ltd. 1,920,000.00 1,920,000.00

Yueyang Meinian Onehealth & Health Management Co., Ltd. 1,920,000.00 1,920,000.00 Zhuzhou Meinian Onehealth & Wellness Management Co., 1,920,000.00 1,920,000.00 Ltd. Daye Meinian Onehealth Checkup Management Co., Ltd. 1,900,000.00 500,000.00 2,400,000.00

Jiaxing Meinian Onehealth Management Co., Ltd. 1,800,000.00 1,800,000.00

92

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Bozhou Meinian Onehealth & Health Management Co., Ltd. 1,800,000.00 1,800,000.00

Suining Meinian Physical Examination Hospital Co., Ltd. 1,800,000.00 1,800,000.00

Gunagyuan Meinian Onehealth Technology Co., Ltd. 1,800,000.00 1,800,000.00

Yantai Ciming Health Checkup Management Co., Ltd. 1,500,000.00 1,500,000.00

Deyang Meinian Physical Examination Hospital Co., Ltd. 1,500,000.00 1,500,000.00

Ezhou Meinian Onehealth Management Co., Ltd. 1,365,000.00 585,000.00 1,950,000.00

Puyang Meinian Onehealth Management Co., Ltd. 1,200,000.00 1,200,000.00 Songyuan Meinian Onehealth & Wellness Management Co., 1,000,000.00 200,000.00 1,200,000.00 Ltd. Xinyang Meinian Onehealth Management Co., Ltd. 1,000,000.00 1,000,000.00

Xinxiang Meinian Onehealth Management Co., Ltd. 650,000.00 650,000.00 Qingdao Meinian Health Technology Health Management 7,640,300.00 7,640,300.00 Co., Ltd. Nanjing Meizhao Health Management Co., Ltd. 5,000,000.00 5,000,000.00

Zhejiang Meizhao Medical Investment Management Co., Ltd. 5,000,000.00 5,000,000.00 Wuhan Dongxihu Ciming Physical Examination Management 4,750,000.00 4,750,000.00 Co., Ltd. Suzhou Gusu Meizhao Outpatient Co., Ltd. 4,000,000.00 4,000,000.00

Ningbo Yinzhou Meizhao Integrated Outpatient Co., Ltd. 4,000,000.00 4,000,000.00 Qingdao Ciming Physical Examination Health Management 3,800,000.00 3,800,000.00 Co., Ltd.

93

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Shangqiu Aoya Medical Technology Co., Ltd. 3,420,000.00 3,420,000.00

Tieling Meinian Onehealth & Wellness Management Co., Ltd. 3,060,000.00 3,060,000.00

Anhui Meixin Health Management Consulting Co., Ltd. 3,000,000.00 3,000,000.00

Baoding Ciming Outpatient Co., Ltd. 2,720,000.00 2,720,000.00

Qianjiang Meinian Onehealth Checkup Management Co., Ltd. 2,550,000.00 2,550,000.00

Shanghai Meilu Outpatient Co., Ltd. 2,500,000.00 2,500,000.00

Shanghai Meiyun Outpatient Co., Ltd. 2,500,000.00 2,500,000.00

Guangzhou Meinian Onehealth Medical Investment Co., Ltd. 2,500,000.00 2,500,000.00

Yuxi Meinian Onehealth Industry Co., Ltd. 2,400,000.00 2,400,000.00 Dongguan Dongcheng Meizhao Health Medical Outpatient 2,200,000.00 2,200,000.00 Co., Ltd. Taicang Meinian Onehealth Outpatient Co., Ltd. 2,000,000.00 2,000,000.00

Shanghai Meitao Outpatient Co., Ltd. 2,000,000.00 2,000,000.00

Wuhan Meizhinian Health Management Co., Ltd. 2,000,000.00 2,000,000.00

Zhengzhou Meijian Health Management Co., Ltd. 2,000,000.00 2,000,000.00

Nanning Qiankang Health Management Co., Ltd. 1,800,000.00 1,800,000.00

Gao An Meinian Onehealth Checkup Management Co., Ltd. 1,600,000.00 1,600,000.00

Harbin Meiming Health Management Co., Ltd. 1,600,000.00 1,600,000.00

94

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book balance Shareholding Cash dividends Impairment Investee Opening Proportion in in the current Increase Decrease Closing balance provision balance investee (%) year Xuancheng Meinian Onehealth Management Co., Ltd. 1,500,000.00 1,500,000.00

Qinzhou Meiling Health Checkup Co., Ltd. 500,000.00 500,000.00

Total 576,626,206.70 694,292,900.00 193,864,791.00 1,077,054,315.70 34,863,256.47

95

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Note 1: Nantong Meifu Health Industry Investment Partnership (Limited Partnership) has a total amount of RMB 1,203 million, of which the general partner Shanghai Shunxi Investment Management Co., Ltd. has subscribed for RMB 2 million, and the general partner Beijing Dongfuhuitong Investment Management Center (Limited Partnership) subscribed for RMB 1 million, and limited partner Meinian Onehealth Industry Holdings Co., Ltd. subscribed for RMB 228 million, and limited partner Beijing Dongfutongda Investment Management Center (limited partnership) subscribed for RMB 972 million. Note 2: The total amount of funds pledged by Shanghai Jianyi Investment Center (Limited Partnership) is RMB 502 million, of which the general partner Shanghai Tianyi Asset Management Co., Ltd. subscribed for RMB 1 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 million, and Shanghai Tianyi Industrial Holding Group Co., Ltd. subscribed for RMB 50 million. Limited Partner Yinhe Jinhui Securities Asset Management Co., Ltd. (on behalf of “Yinghe Huida 187 Directional Asset Management Plan”) subscribed for RMB 333 million, and the limited partner Great Wall Guorong Investment Management Co., Ltd. subscribed for RMB 62 million, the limited partner Meinian Onehealth subscribed for RMB 50 million. Note 3: Nantong Meizhao Meinian Health Industry M&A Investment Fund (Limited Partnership) has a total amount of RMB 502 million, of which the general partner Shanghai Shunxi Investment Management Co., Ltd. has subscribed for RMB 1 million. The general partner Shanghai Zhongfu Venture Capital Management Co., Ltd. subscribed for RMB 1 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 the capital contribution was RMB 100 million, and the limited partner Shanghai Tianyi Industrial Holding Group Co., Ltd. subscribed for RMB 50 million, and the limited partner Meinian Health subscribed RMB 50 million. Note 4: Fuzhou Meinian Medical Investment Partnership (Limited Partnership) has a total amount of RMB 452.0020 million, of which the general partner Strait Huifu Industrial Investment Fund Management Co., Ltd. has subscribed for RMB 2,000. The limited partner State Investment UBS Capital Management Co., Ltd. subscribed for a capital contribution of RMB 290 million, and the limited partner Guizhou Meinian Yida Health Consulting Co., Ltd. subscribed for a capital contribution of RMB 95 million, and

96

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 the limited partner Meinian Health subscribed for capital contribution with RMB 67 million. Note 5: The fund size of Shanghai Meinian Onehealth Phase I Equity Investment Fund Partnership is RMB 393 million, of which the general partner Beijing Zhongrong Dingsheng Investment Co., Ltd. has subscribed for RMB 1 million, and its wholly-owned subsidiary Shanghai Meinian Onehealth Examination Investment Management Co., Ltd. subscribed for a capital contribution of RMB 1 million, and the limited partner Beijing Zhongrong Dingxin Investment Management Co., Ltd. subscribed for a capital contribution of RMB 325.7 million, and the limited partner Meinian Onehealth subscription amount is RMB 65.3 million. 9. Long-term receivables Closing balance Items Book balance Impairment provision Book value Finance lease 1,092,226,753.77 1,092,226,753.77 Factoring 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 360,853,015.93 360,853,015.93 VI.6) Total 744,652,063.18 744,652,063.18

(Cont.) Opening balance Items Book balance Impairment provision Book value Finance lease 494,914,363.87 494,914,363.87 Factoring 15,114,122.00 15,114,122.00 Deposit for finance lease 744,626.58 744,626.58 Less: Non-current assets due within one year (Note 173,774,268.93 173,774,268.93 VI.6) Total 336,998,843.52 336,998,843.52

97

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

10. Long-term equity investments Increase and decrease in the current Increase and decrease in the Closing year current year Opening Closing balance of Investee Investment income or balance Increase in Other equity balance Impairment loss recognized under Other investments change provision equity method Associated Enterprise Luoyang Meinian Onehealth Technology Co., 784,728.08 159,464.01 944,192.09 Ltd. Beijing Langmei Culture Media Co., Ltd. 1,234,830.17 -285,006.15 949,824.02 Yangxin Ciming Health Examination 1,465,294.48 1,727.55 1,467,022.03 Management Co., Ltd. Panzhihua Ciming Health Examination 1,722,035.65 -709,277.73 1,012,757.92 Management Co., Ltd. Lianjiang Ciming Health Examination 1,733,407.21 62,508.44 1,795,915.65 Management Co., Ltd. Dongying Meinian Onehealth Co., Ltd. 2,214,251.72 892,160.17 3,106,411.89 Pizhou Ciming Health Examination 2,261,565.32 -347,190.95 1,914,374.37 Management Co., Ltd. Weihai Guoji Meinian Comprehensive 2,593,546.30 1,000,000.00 613.18 3,594,159.48 Onehealth Outpatient Co., Ltd. Heze Meinian Onehealth Examination 2,765,837.93 32,004.40 -2,797,842.33 Management Co., Ltd. Kaifeng Meinian Onehealth Examination 3,308,133.94 737,174.39 -4,045,308.33 Management Co., Ltd. Yantai Meinian Onehealth Examination 4,239,218.43 -1,200,565.19 3,038,653.24 Management Co., Ltd. Jiangsu Huakang Vocational Health 6,999,194.06 -1,403,161.46 5,596,032.60 Consulting Co., Ltd. Mengcheng county Meinian Onehealth 840,000.00 -247,487.17 592,512.83 Examination Management Co., Ltd.

98

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Increase and decrease in the current Increase and decrease in the Closing year current year Opening Closing balance of Investee Investment income or balance Increase in Other equity balance Impairment loss recognized under Other investments change provision equity method Fuyang Meinian Onehealth Examination 2,000,000.00 -1,620,268.88 379,731.12 Management Co., Ltd. Guyuan Meinian Onehealth Hospital Co., 3,420,000.00 -530,754.28 2,889,245.72 Ltd. Leshan Ciming Health Examination Service 4,200,000.00 -1,398,183.34 2,801,816.66 Co., Ltd. Anshun Ciming Health Examination 4,200,000.00 -713,436.63 3,486,563.37 Management Co., Ltd. Enshi Meinian Onehealth Management Co., 5,600,000.00 -1,185,616.73 4,414,383.27 Ltd. Baoshan Meinian Onehealth Examination 5,600,000.00 93,075.49 5,693,075.49 Center Co., Ltd. Xianning Meinian Onehealth Examination 6,300,000.00 -567,948.06 5,732,051.94 Management Co., Ltd. Dalian pulan Meinian Comprehensive Health 6,300,000.00 -595,721.88 5,704,278.12 Outpatient Co., Ltd. Wenshan Meinian Onehealth Examination 6,300,000.00 -1,181,631.83 5,118,368.17 Center Co., Ltd. Shanghai Haozhuo Data Service Co., Ltd. -891,094.40 891,094.40

Total 31,322,043.29 45,760,000.00 -10,898,617.05 891,094.40 -6,843,150.66 60,231,369.98

99

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

11. Fixed assets Items Closing balance Opening balance Fixed Assets 2,562,138,477.09 1,861,956,019.33 Disposal of fixed assets Total 2,562,138,477.09 1,861,956,019.33

Fixed Assets Information of fixed assets Machines and Transportation Items Buildings Others Total Equipment equipment I. Original book value

1. Opening balance 96,994,872.23 1,963,660,528.64 95,634,205.26 227,130,800.64 2,383,420,406.77

2. Increase 928,510,201.23 19,581,889.19 71,020,750.25 1,019,112,840.67

(1) Purchase 494,092,937.84 9,057,983.09 39,817,834.68 542,968,755.61 (2) Transfer from construction in 51,099,837.53 2,156,681.75 53,256,519.28 progress (3) Increase from 383,317,425.86 10,523,906.10 29,046,233.82 422,887,565.78 business combination 3. Decrease 35,899,174.13 4,128,313.84 12,590,483.68 52,617,971.65 (1) Disposal or 35,899,174.13 4,128,313.84 12,590,483.68 52,617,971.65 scrapping 4. Closing Balance 96,994,872.23 2,856,271,555.74 111,087,780.61 285,561,067.21 3,349,915,275.79 II. Accumulated - depreciation 1. Opening balance 7,033,587.80 380,696,724.66 30,976,825.26 102,757,249.72 521,464,387.44

2. Increase 3,613,027.06 252,501,289.82 12,545,446.49 40,963,998.80 309,623,762.17

(1) Accrued 3,613,027.06 252,501,289.82 12,545,446.49 40,963,998.80 309,623,762.17

3. Decrease 29,361,322.58 3,055,434.78 10,894,593.55 43,311,350.91 (1) Disposal or 29,361,322.58 3,055,434.78 10,894,593.55 43,311,350.91 scrapping 4. Closing Balance 10,646,614.86 603,836,691.90 40,466,836.97 132,826,654.97 787,776,798.70 III. Impairment - provision 1. Opening balance -

2. Increase -

(1) Accrued -

3. Decrease - (1) Disposal or - scrapping 4. Closing Balance -

100

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Machines and Transportation Items Buildings Others Total Equipment equipment IV. Book value -

1. Closing balance 86,348,257.37 2,252,434,863.84 70,620,943.64 152,734,412.24 2,562,138,477.09

2. Opening balance 89,961,284.43 1,582,963,803.98 64,657,380.00 124,373,550.92 1,861,956,019.33

(2) Fixed assets leased through finance lease Accumulated Impairment Items Original book value Book value depreciation provision MRI equipment 110,094,851.19 23,260,637.96 86,834,213.23

(3) Fixed assets leased out through operating leases Items Closing balance on book value MRI equipment 20,567,411.34 Total 20,567,411.34

12. Construction in progress Items Closing balance Opening balance Projects under construction 68,604,915.20 86,580,880.55 Engineering materials Total 68,604,915.20 86,580,880.55

(1) Condition of construction in progress Closing balance Opening balance Items Impairment Impairment Book balance Book value Book balance Book value provision provision Store decoration fee 54,617,849.08 54,617,849.08 61,002,224.99 61,002,224.99 NMR equipment 7,735,646.80 7,735,646.80 20,636,982.24 20,636,982.24 under installation Medical Service Management Informationalization 6,251,419.32 6,251,419.32 4,308,919.96 4,308,919.96 System Construction Project JAVA System R&D 632,753.36 632,753.36

Total 68,604,915.20 68,604,915.20 86,580,880.55 86,580,880.55

(2) Change of significant construction in progress in the current year Amount Opening Closing Items Budget Increase transferred into Other decrease balance balance fixed assets Store decoration 61,002,224.99 382,603,697.83 388,988,073.74 54,617,849.08 fee NMR equipment 20,636,982.24 37,406,862.72 50,308,198.16 7,735,646.80 under installation Medical Service 4,308,919.96 22,312,416.25 2,948,321.12 17,421,595.77 6,251,419.32 Management

101

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Amount Opening Closing Items Budget Increase transferred into Other decrease balance balance fixed assets Informationalization System Construction Project Total 85,948,127.19 442,322,976.80 53,256,519.28 406,409,669.51 68,604,915.20

(Cont.) Including: Proportion of Accumulated Interest Accumulated accumulative Project amount of capitalization Sources of Name of project interests investment to Progress (%) interest rate of this funds capitalization budget (%) capitalization year this year Under Store decoration fee Owned fund decoration Under NMR equipment under installation and Owned fund installation commissioning Medical Service Management Under Informationalization Fund Raise construction System Construction Project 13. Intangible assets Information of intangible assets Items Software Trademark Total I. Original book value 1. Opening balance 48,435,506.40 103,554,999.81 151,990,506.21 2. Increase 33,454,260.56 591,924.52 34,046,185.08 (1) Purchase 22,575,094.78 591,924.52 23,167,019.30 (2) Internal R&D 2,798,916.50 2,798,916.50 (3) Increase from 8,080,249.28 8,080,249.28 business combination 3. Decrease 23,392.91 23,392.91 (1) Disposal 23,392.91 23,392.91 4. Closing balance 81,866,374.05 104,146,924.33 186,013,298.38 II. Accumulated

Amortization 1. Opening balance 13,378,848.22 37,170.76 13,416,018.98 2. Increase 7,168,325.28 28,600.61 7,196,925.89 (1) Accrued 7,168,325.28 28,600.61 7,196,925.89 3. Decrease 11,000.00 11,000.00 (1) Disposal 11,000.00 11,000.00

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Software Trademark Total 4. Closing balance 20,536,173.50 65,771.37 20,601,944.87 III. Impairment provision 1. Opening balance 2. Increase (1) Accrued 3. Decrease (1) Disposal 4. Closing balance IV. Book value 1. Closing book value 61,330,200.55 104,081,152.96 165,411,353.51 2. Opening book value 35,056,658.18 103,517,829.05 138,574,487.23

14. Goodwill Increase Name of invested entity or matters Opening balance Decrease Closing balance constituting goodwill By business combination Ciming Health Checkup 2,862,973,886.23 2,862,973,886.23 Management Group Co., Ltd. Shenzhen Hongkangjie 254,541,769.69 254,541,769.69 Technology Co., Ltd. New Health Holdings Limited 154,211,053.19 154,211,053.19 Chengdu Tianfu New District Aoya 53,726,006.53 53,726,006.53 Hospital Co., Ltd. Shenzhen Meinian Onehealth & 45,161,039.79 45,161,039.79 Wellness Management Co., Ltd. Urumqi Huarui Tianmei Health 44,534,692.16 44,534,692.16 Management Co., Ltd. Meinian Onehealth Industry 39,554,148.56 39,554,148.56 Group Nantong Co., Ltd. Hainan Meinian Onehealth 34,798,522.93 34,798,522.93 Healthcare Hospital Co., Ltd. Hefei Ciming Health Checkup 33,820,711.17 33,820,711.17 Management Co., Ltd. Wuhan Gaoxin Outpatient Co., 28,736,159.04 28,736,159.04 Ltd. Dalian Lushun Meinian Onehealth New City Comprehensive 24,092,312.78 24,092,312.78 Outpatient Department Co., Ltd. Luoyang Meinian Onehealth 23,208,425.08 23,208,425.08 Information Consulting Co., Ltd. Liaoyang Meinian Onehealth & 22,460,719.71 22,460,719.71 Wellness Management Co., Ltd. Hangzhou Meixi Medical 22,377,861.17 22,377,861.17 Outpatient Co., Ltd. Tianjin Binhai New Area Meixin 20,607,947.55 20,607,947.55 Outpatient Co., Ltd.

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Increase Name of invested entity or matters Opening balance Decrease Closing balance constituting goodwill By business combination Liyang Meinian Onehealth 19,563,520.73 19,563,520.73 Consulting Co., Ltd. Mianyang Meinian Onehealth 19,463,255.70 19,463,255.70 Technology Co., Ltd. Pingdingshan Meinian Onehealth 18,733,424.54 18,733,424.54 Technology Service Co., Ltd. Ningbo Haishu Meinnian Comprehensive Outpatient Co., 18,493,131.07 18,493,131.07 Ltd. Leshan Meinian Onehealth 16,831,918.70 16,831,918.70 Service Co., Ltd. Suzhou Meida Outpatient Co., 16,805,612.94 16,805,612.94 Ltd. Xiamen Meinian Onehealth 16,743,631.51 16,743,631.51 management Co., Ltd Xichang Meinian Onehealth 16,526,450.46 16,526,450.46 Health Management Co., Ltd. Nanchang Meikang Health 16,268,029.59 16,268,029.59 Checkup Center Co., Ltd. Yili Meinian Onehealth Health 15,243,237.37 15,243,237.37 Management Co., Ltd. Chongqing Onehealth Physical Examination Management Co., 15,141,474.53 15,141,474.53 Ltd. Tongliao Ciming Health 14,101,048.93 14,101,048.93 Management Co., Ltd. Zhengzhou Meinian Health 13,241,169.48 13,241,169.48 Medical Management Co., Ltd. Anhui Tzu Chi Medical Investment 11,952,496.78 11,952,496.78 Management Co., Ltd. Tai'an Meinian Onehealth 11,387,029.68 11,387,029.68 Checkup Management Co., Ltd. Nanchang Honggu Changgeng 11,022,422.73 11,022,422.73 Health Checkup Center Co., Ltd. Beijing Ciming Oya Shangdi Brilliant Outpatient Branch Co., 10,610,598.31 10,610,598.31 Ltd. Xi’an Meinian Onehealth Physical Examination Management Co., 9,852,788.67 9,852,788.67 Ltd. Hami Meinian Onehealth 9,758,261.51 9,758,261.51 Healthcare Management Co., Ltd. Yichun Meinian Onehealth 8,806,225.48 8,806,225.48 Checkup Co., Ltd. Lanzhou Meinian Onehealth Jinmao Healthcare Management 8,805,882.61 8,805,882.61 Co., Ltd. Linyi Onehealth and Onehealth Checkup File Management Co., 8,782,601.72 8,782,601.72 Ltd. Weifang Meinian Huier Health 8,210,833.00 8,210,833.00 Management Co., Ltd.

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Increase Name of invested entity or matters Opening balance Decrease Closing balance constituting goodwill By business combination Linyi Meinian Health Checkup 7,810,130.25 7,810,130.25 Management Co., Ltd. Changchun Meinian Onehealth Yu 7,776,353.10 7,776,353.10 Hao Hospital Co., Ltd. Wuhan Meinian Onehealth 7,270,863.41 7,270,863.41 Checkup Management Co., Ltd. Beijing Meinian Jiajing Outpatient 6,422,121.73 6,422,121.73 Co., Ltd. Beijing Meinian Lushengyuan 5,956,525.00 5,956,525.00 Outpatient Co., Ltd. Weifang Meinian Onehealth & 5,588,566.83 5,588,566.83 Wellness Management Co., Ltd. Guizhou Meinian Onehealth Kangyuan Physical Examination 5,051,457.36 5,051,457.36 Center Co., Ltd. Anhui Meinian Onehealth 4,247,500.31 4,247,500.31 Management Consulting Co., Ltd. Jiangsu Huakang Investment 4,216,052.41 4,216,052.41 Development Co., Ltd. Chengdu Kai'er Health Physical 3,493,347.97 3,493,347.97 Examination Hospital Co., Ltd. Changshu Meinian Onehealth 2,010,087.46 2,010,087.46 Outpatient Co., Ltd. Jinzhou Meinian Health 1,893,765.66 1,893,765.66 Management Co., Ltd. Jiyuan Meinian Onehealth 1,732,493.87 1,732,493.87 Technology Co., Ltd. Nanjing Mei Shi Year Specialist 839,465.05 839,465.05 Outpatient Department Co., Ltd. Sichuan Hongkangjie Medical 91,940.40 91,940.40 Investment Management Co., Ltd. Beijing Meinian Meifu Outpatient 44,210,219.63 44,210,219.63 Co., Ltd. Foshan Meinian Onehealth 41,379,426.80 41,379,426.80 Checkup Management Co., Ltd. Chengdu Jinjiang Meinian Onehealth Weikang Medical 40,543,460.68 40,543,460.68 Outpatient Branch Co., Ltd. Changchun Baiwei Ci Kang 30,333,493.00 30,333,493.00 Hospital Co., Ltd. Zhongshan Meinian Onehealth 31,230,102.57 31,230,102.57 Management Co., Ltd. Wenzhou Aoya Hospital Co., Ltd. 24,782,474.88 24,782,474.88 Puyang Meinian Onehealth 25,797,617.78 25,797,617.78 Management Co., Ltd. Xinjiang Puhuitai Health 25,685,129.27 25,685,129.27 Management Co., Ltd. Zhuzhou Meinian Onehealth & 25,431,489.53 25,431,489.53 Wellness Management Co., Ltd. Dali Meinian Physical 25,152,873.60 25,152,873.60 Examination Hospital Co., Ltd.

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Increase Name of invested entity or matters Opening balance Decrease Closing balance constituting goodwill By business combination Yantai Ciming Health Checkup 22,367,134.88 22,367,134.88 Management Co., Ltd. Heyuan MeiyinOnehealth 21,018,412.69 21,018,412.69 Management Co., Ltd. Puer Meinian Onehealth Physical 20,616,526.97 20,616,526.97 Examination Center Co., Ltd. Huludao Meinian Onehealth 20,262,901.85 20,262,901.85 Management Co., Ltd. Xiangtan Meinian Onehealth & 20,192,982.14 20,192,982.14 Health Management Co., Ltd. Xinxiang Meinian Onehealth 19,618,877.76 19,618,877.76 Management Co., Ltd. Heze Meinian Onehealth Examination Management Co., 19,239,221.74 19,239,221.74 Ltd. Yuxi Meinian Onehealth Industry 17,405,420.27 17,405,420.27 Co., Ltd. Xinyang Meinian Onehealth 17,374,313.70 17,374,313.70 Management Co., Ltd. Dandong Meinian Onehealth & 16,972,358.06 16,972,358.06 Health Management Co., Ltd. Wuhan Meinian Yisheng Health 15,407,646.36 15,407,646.36 Management Co., Ltd. Suining Meinian Physical 15,162,158.92 15,162,158.92 Examination Hospital Co., Ltd. Daye Meinian Onehealth Checkup 14,851,246.44 14,851,246.44 Management Co., Ltd. Deyang Meinian Physical 13,979,871.26 13,979,871.26 Examination Hospital Co., Ltd. Gunagyuan Meinian Onehealth 13,249,795.94 13,249,795.94 Technology Co., Ltd. Wuhan Meinian Health 12,672,055.29 12,672,055.29 Management Co., Ltd. Handan City Meinian Onehealth 12,625,237.93 12,625,237.93 Management Co., Ltd. Songyuan Meinian Onehealth & 12,293,726.18 12,293,726.18 Wellness Management Co., Ltd. Yueyang Meinian Onehealth & 12,198,944.99 12,198,944.99 Health Management Co., Ltd. Bozhou Meinian Onehealth Health 11,804,045.18 11,804,045.18 Management Co., Ltd. JinzhongMeinian Onehealth 11,707,167.20 11,707,167.20 Management Co., Ltd. Jiaxing Meinian Onehealth 11,610,377.94 11,610,377.94 Management Co., Ltd. Ezhou Meinian Onehealth 11,413,988.07 11,413,988.07 Management Co., Ltd. Ningbo Yinzhou Yihe Comprehensive Outpatient Co., 7,539,701.89 7,539,701.89 Ltd. Guangdong Youyi Health 5,009,235.97 5,009,235.97 Management Co., Ltd.

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Increase Name of invested entity or matters Opening balance Decrease Closing balance constituting goodwill By business combination Kaifeng Meinian Onehealth Examination Management Co., 2,486,575.83 2,486,575.83 Ltd. Total 4,045,550,972.43 693,626,213.19 4,739,177,185.62

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. 15. Long-term deferred expenses Opening Amortization Other Closing Items Increase balance this year Decrease balance Store decoration 568,493,554.72 388,979,965.64 236,322,269.75 142,390.35 721,008,860.26 fee Expenditure for renovation of 72,284,382.31 5,010,767.03 67,273,615.28 No.91, Beiyuan Road Expenditure for long-term house 18,173,077.16 1,211,538.48 16,961,538.68 leasing right Financial service 24,047,993.62 4,257,953.41 19,790,040.21 custodian fee Rent 631,552.58 693,729.57 421,456.92 903,825.23

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Opening Amortization Other Closing Items Increase balance this year Decrease balance Other 1,859,052.18 555,772.93 1,303,279.25

Total 659,582,566.77 415,580,741.01 247,779,758.52 142,390.35 827,241,158.91

16. Deferred tax assets and deferred tax liabilities (1) Breakdown of deferred tax assets Closing balance Opening balance Deductible Deductible Items Deferred tax Deferred tax temporary temporary assets assets difference difference Deductible loss 150,536,061.85 33,909,376.63 168,431,790.59 40,439,111.41 House rent 110,882,856.84 24,621,000.93 79,806,422.17 18,006,617.33 Provision for assets 76,549,974.13 15,945,128.41 54,361,877.55 11,456,713.91 impairment Unrealized profits of 21,404,049.00 5,351,012.25 23,260,478.60 5,815,119.65 internal transactions Fixed Assets under 7,611,077.93 1,849,788.05 3,742,473.15 908,552.52 finance Lease Deferred income 4,950,000.00 742,500.00 Asset evaluation impairment for business combination not 1,336,749.67 334,187.49 1,838,672.63 459,668.22 involving enterprises under common control Employees’ 207,248.59 41,553.03 compensation Other 1,120,990.52 280,247.63 880,422.47 220,105.62 Total 374,391,759.94 83,033,241.39 332,529,385.75 77,347,441.69

(2) Breakdown of deferred tax liabilities Closing balance Opening balance Taxable Items Deferred tax Taxable temporary Deferred tax temporary liabilities difference liabilities difference Change in fair value controlled through 206,564,111.42 45,368,741.07 64,568,962.08 13,733,683.73 transactions by steps Asset evaluation increment for business combination not 23,796,028.43 4,045,371.70 27,969,595.88 4,929,311.36 involving enterprises under common control Total 230,360,139.85 49,414,112.77 92,538,557.96 18,662,995.09

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

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Closing balance Opening balance Deductible temporary 9,005,591.09 4,407,886.55 difference Deductible loss 477,983,661.28 247,083,668.05 Total 486,989,252.37 251,491,554.60

(4) The deductible losses of unrecognized deferred tax assets will be due in the following year. Year Closing balance Opening balance Remarks 2018 8,860,734.41 2019 25,963,596.68 13,858,156.01 2020 31,051,645.25 41,151,217.54 2021 139,142,253.24 67,749,749.32 2022 132,195,186.50 115,463,810.77 2023 149,630,979.61 Total 477,983,661.28 247,083,668.05

17. Other non-current assets Items Closing balance Opening balance Prepayment for equity acquisition 171,382,245.28 64,492,133.08 Prepayment for equipment 49,245,034.82 77,075,023.16 Total 220,627,280.10 141,567,156.24

18. Short-term borrowings Items Closing balance Opening balance Pledged loan 240,419,870.37 81,429,300.00 Mortgage loan 42,000,000.00 40,000,000.00 Guaranteed loan 2,100,330,000.00 878,000,000.00 Credit loan 31,000,000.00 145,000,000.00 Total 2,413,749,870.37 1,144,429,300.00

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 more than RMB 160 million. As at December 31, 2018, the balance of borrowings was RMB 144,458,300. 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)

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Co., Ltd., and the Company provided a maximum guarantee of not more than RMB 100 million. The balance of borrowings on December 31, 2018 was RMB 95,961,500. Note 3: In 2018, Ciming Health Examination Management Group Co., Ltd., a subsidiary of the Company, borrowed RMB 42 million from Guangfa Bank Co., Ltd. Beijing Weigongcun Sub-branch with fixed assets as collateral. The balance of loans as at December 31, 2018 was RMB 42 million. Note 4: In 2017, the Company provided guarantees to the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to China Minsheng Bank Co., Ltd. Shanghai Branch for RMB 400 million. In 2018, the Company provided guarantee to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to China Minsheng Bank Co., Ltd. Shanghai Branch for loan of RMB 1,100 million. The balance of the loan as at December 31, 2018 was RMB 1,100 million. Note 5: In 2018, the Company provided guarantees for the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to Pudong Development Bank Co., Ltd. Linkong Sub-branch for the loan of RMB 350 million, and the balance of loans as at December 31, 2018 was RMB 350 million. Note 6: In 2018, the Company provided guarantees for the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to China CITIC Bank Co., Ltd. Shanghai Branch to borrow RMB 300 million, and the balance of loans as at December 31, 2018 was RMB 300 million. Note 7: In 2018, the Company provided guarantees for the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to Bank of Shanghai co., LTD Shanghai Pudong Branch to borrow RMB 112.5 million. The balance of loans as at December 31, 2018 was RMB 112.5 million. Note 8: In 2018, the Company provided guarantees for the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to Huaxia bank co., LTD Shanghai Branch to borrow RMB 100 million. The balance of loans as at December 31, 2018 was RMB 100 million. Note 9: In 2018, the Company provided guarantees for the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to Citibank (China) Co., Ltd. Shanghai Branch for revolving loan of RMB 100 million. The balance of loans as at December 31, 2018 was RMB 100 million. Note 10: In 2018, the Company provided guarantees for the subsidiary Shanghai Meixin finance leasing co., LTD to Ningbo Tongshang Bank Co., Ltd. Shanghai Branch

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 to borrow RMB 29.83 million. The balance of loans as at December 31, 2018 was RMB 29.83 million. Note 11: In 2018, the Company provided guarantees for the subsidiary Wuxi Huakang Clinic Co., Ltd. to Agricultural Bank of China Co., Ltd. Wuxi Binhu Branch to borrow RMB 4 million. The loan is guaranteed by Zhaorong Xu and Liping Ren, with a maximum amount of RMB 5.5 million. The balance of loans as at December 31, 2018 was RMB 4 million. Note 12: 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., and the loan balance as at December 31, 2018 was RMB 2 million. Note 13: 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. Yunhua Wang was the co-borrower. The balance of loans as at December 31, 2018 was RMB 2 million. 19. Notes payable and accounts payable Items Closing balance Opening balance Notes payable 30,781,500.00 Accounts payable 772,721,006.83 595,972,612.79 Total 803,502,506.83 595,972,612.79

(1) Notes payable Items Closing balance Opening balance Commercial acceptance Bank acceptance bill 30,781,500.00 Total 30,781,500.00

(2) Accounts payable Items Closing balance Opening balance Materials payable 338,106,469.38 266,919,108.65 Rent and management fee 172,484,748.09 124,163,083.93 Delivery inspection fee 110,383,654.18 78,485,321.94 Outsourced physical examination 106,893,642.27 85,398,906.66 fee Consulting fee 20,275,437.31 17,710,848.04 Equipment inspection fee and 6,978,238.40 2,837,928.93 maintenance fee

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Items Closing balance Opening balance Car rental fee 4,239,684.39 4,826,444.66 Others 13,359,132.81 15,630,969.98 Total 772,721,006.83 595,972,612.79

20. Advanced from customers Items Closing balance Opening balance Physical examination fee 1,131,991,554.97 949,618,735.40 Consulting fee for finance lease 235,524,364.26 108,977,166.70 Membership fee 24,858,154.65 25,522,056.53 Inspection fees 17,250,338.11 13,129,334.63 Franchise chain fee 6,768,207.18 8,806,848.18 Total 1,416,392,619.17 1,106,054,141.44

21. Employee benefits payable (1) Presentation of employee benefits payable Items Opening balance Increase Decrease Closing balance

I. Short-term compensation 420,623,567.91 3,064,310,903.29 3,045,561,280.91 439,373,190.29 II. Post-employment benefits defined 5,110,017.21 213,052,229.70 211,762,817.47 6,399,429.44 contribution plan III. Termination benefits IV. Other welfare due within one year Total 425,733,585.12 3,277,363,132.99 3,257,324,098.38 445,772,619.73

(2) Presentation of short-term remuneration Items Opening balance Increase Decrease Closing balance 1. Wage, bonus, allowance 410,711,116.02 2,733,228,595.92 2,716,873,518.47 427,066,193.47 and subsidy 2. Employee welfare 1,265,983.70 85,194,074.55 85,812,400.15 647,658.10 3.Social insurance 2,956,754.73 110,756,543.00 109,879,416.88 3,833,880.85 expenses Including: Medical 2,551,843.95 98,212,256.54 97,390,887.91 3,373,212.58 insurance premiums Industrial injury insurance 123,808.05 3,667,483.65 3,651,872.31 139,419.39 premium Maternity insurance 281,102.73 8,876,802.81 8,836,656.66 321,248.88 premium 4. Housing fund 1,647,650.67 58,120,694.38 57,768,226.68 2,000,118.37 5. Labor-union expenditure and employee education 3,906,750.29 20,197,124.37 19,693,043.42 4,410,831.24 costs

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Opening balance Increase Decrease Closing balance 6. Short-term compensated absences 7. Short-term profits sharing plan 8.Others 135,312.50 56,813,871.07 55,534,675.31 1,414,508.26

Total 420,623,567.91 3,064,310,903.29 3,045,561,280.91 439,373,190.29

(3) Presentation of defined contribution plan Opening Increase in the Decrease in the Items Closing balance balance current year current year 1.Basic pension insurance 4,859,679.95 206,754,099.17 205,506,923.35 6,106,855.77 2.Unemployment insurance 250,337.26 6,298,130.53 6,255,894.12 292,573.67 premiums 3. Enterprise annuity payment Total 5,110,017.21 213,052,229.70 211,762,817.47 6,399,429.44

22. Tax payable Items Closing balance Opening balance Corporate income tax 140,872,177.04 97,217,112.01 Individual income tax 7,899,611.69 9,868,668.47 Value-added tax 5,484,995.47 321,337.73 Security fund for the disabled 1,216,976.00 311,839.11 Stamp tax 347,794.96 1,586,230.64 Urban maintenance and construction tax 257,717.64 25,092.88 Education surcharge 222,449.19 17,466.76 Others 179,522.96 85,228.61 Total 156,481,244.95 109,432,976.21

23. Other payables Items Closing balance Opening balance Interest payable 55,119,683.93 34,571,686.48 Dividends payable 8,315,608.32 5,843,848.23 Other payables 526,961,622.25 266,827,587.88 Total 590,396,914.50 307,243,122.59

(1) Interests Payable Items Closing balance Opening balance Bond interests payable 41,175,832.58 30,176,665.90 Interests payable for long-term loan 9,627,954.07 2,530,883.16

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Items Closing balance Opening balance Interests payable for short-term loan 4,315,897.28 1,864,137.42 Total 55,119,683.93 34,571,686.48

(2) Dividends Payable Items Closing balance Opening balance Excellence in Future (Beijing) Education 3,388,690.00 Consulting Co., Ltd. Xujing Jin 877,400.00 618,349.04 Chenggong Hu 477,330.46 Hongqi Guo 454,660.91 Hu Sun 427,675.80 104,021.33 Yongtian Dong 418,568.89 173,368.89 Ouke Express International Trade Wenzhou Co., 220,187.12 Ltd. Yucheng Wang 209,684.45 86,684.45 Lanping Mao 209,684.45 86,684.45 Jiangxia Guo 209,284.45 146,684.45 Yanwen Sun 188,064.27 188,064.27 Yan Hu 176,054.47 Jing Liu 176,054.47 Shangyi Zhang 159,110.15 Wanbing Pan 141,048.21 141,048.21 Chunyan Yang 133,909.03 133,909.03 Yan Li 133,909.03 133,909.03 Jingyan Yang 84,628.92 84,628.92 Yan Wang 77,628.42 77,628.42 Lengmu Chen 61,021.11 156,526.39 Qingzheng Sun 47,016.07 47,016.07 Shuxian Fan 19,407.11 19,407.11 Xiaoshan Hu 15,525.68 15,525.68 Tao Gong 9,064.85 9,064.85 Qikai Xu 1,369,494.98 Min Zhang 1,069,376.34 Lin Shi 684,533.97 Danjiang Wei 279,410.69

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Items Closing balance Opening balance Hong Du 218,511.66 Total 8,315,608.32 5,843,848.23

(3) Other Payables Category by nature Items Closing balance Opening balance Equity acquisition 148,077,371.90 57,085,307.90 Amount paid by finance lease company for 100,721,218.43 55,824,652.53 purchasing equipment Current payable 91,876,888.90 52,938,211.48 Decoration fee 45,720,824.70 35,938,052.39 Collection and payment of employee 30,706,960.90 shareholding Equipment 25,944,767.31 14,993,781.16 Deposit and margin 25,821,497.85 12,248,023.14 Equipment purchase warranty 21,351,000.00 Personal loan 5,639,599.18 11,744,741.80 Service charges 4,985,064.62 2,795,380.00 Withholding social security fund 4,670,943.91 2,628,038.66 Issuance fee 2,320,000.00 Other 21,445,484.55 18,311,398.82 Total 526,961,622.25 266,827,587.88

24. Non-current liabilities due within one year Items Closing balance Opening balance

Long-term loans due within one year (Note VI.26) 766,677,149.83 392,299,368.67

Long-term payables due within one year (Note VI.28) 61,001,825.66 16,470,919.37

Total 827,678,975.49 408,770,288.04

25. Other current liabilities Items Closing balance Opening balance 17 Meinian SCP001 400,000,000.00 Total 400,000,000.00

Including: Increase and decrease of short-term bonds payable Date of Opening Name of Bond Face value Term Issuing value issuance balance 17 Meinian 400,000,000.00 April 19, 2017 270 days 398,600,000.00 400,000,000.00 SCP001

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

(Cont.) Interest Amortization Repayment this Name of Bond Issued this year accrued by of premium Closing balance year book value and discount 17 Meinian 400,000,000.00 SCP001 26. Long-term borrowings Items Closing balance Opening balance Pledge loan 1,253,646,099.73 615,509,950.31 Mortgaged loan 3,282,377.48 2,594,921.11 Guaranteed loan 824,954,813.38 318,500,000.00 Credit loan 38,350,000.00 59,000,000.00 Less: Long-term loans due within one year 766,677,149.83 392,299,368.67 (Note VI. 24) Total 1,353,556,140.76 603,305,502.75

Note 1: In 2015, the Company pledges 31.00% of the equity of Shenzhen Hongkang Technology Co., Ltd., a subsidiary of the Company, who borrow 42million from Shanghai Pudong Development Bank Co., Ltd., Shanghai Branch. As at December 31, 2018, the balance of the loan was RMB 35 million. Note 2: In 2016, the Company pledges 13.00% equity of Xi'an Meinian Onehealth & Health Management Co., Ltd., a subsidiary of the Company, who borrows RMB 8.722 million from China Merchants Bank Co., Ltd. Shanghai Branch. As at December 31, 2018, the balance of the loan was RMB 4.722 million. Note 3: 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., and RMB 25.03 million deposit of Meinian Onehealth as pledge loan. It borrowed RMB 42.5 million from China Merchants Bank Co., Ltd. Shanghai Branch. The balance of loans as at December 31, 2018 was RMB 22.46 million. Note 4: In 2016, 2017 and 2018, Shanghai Meixin Finance Leasing Co., Ltd., a subsidiary of the Company, pledges the accounts receivable and borrows from Shanghai Pudong Development Bank Co., Ltd. Qingpu Branch. The Company provide the maximum guarantee of not more than RMB 294 million from August 31, 2016 to November 19, 2023. The balance of loans as at December 31, 2018 is RMB 272.1992 million. Note 5: In 2016, 2017 and 2018, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, pledges the accounts receivable and borrows from HSBC (China) Co., Ltd. Shanghai Branch, which provides the maximum amount of guarantees

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 no more than RMB 300 million. As at December 31, 2018, the balance of the loan was RMB 211,793,400. Note 6: In 2017, the Company borrowed RMB 50 million from Shanghai Branch Banking Office of China Merchants Bank Co., Ltd. with its subsidiaries Chengdu Tianfu New District Aoya Hospital Co., Ltd.’s 85% equity, Ningbo Haishu Meinian Comprehensive Clinic Co., Ltd.’s 51% equity and Suzhou Meida Clinic Co., Ltd.’s 80.66% equity, and RMB 13 million deposit of Meinian Onehealth held by it as collateral. As at December 31, 2018, the balance of the loan was RMB 40 million. Note 7: In 2017 and 2018, Shanghai Meixin Finance Leasing Co., Ltd., the Company’s subsidiary pledged accounts receivable to Shanghai Branch of Hang Seng Bank (China) Limited based on the financial leasing invoices, and Meinian Onehealth Healthcare provided guarantee for it with the maximum credit line of not exceeding RMB 150 million. As at December 31 2018, the borrowing balance was RMB 149.3239 million. Note 8: 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 200 million. As at December 31, 2018, the balance of loans was RMB 174.3612 million. Note 9: In 2018, Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, used the accounts receivable as the pledge to borrow from DBS Bank (China) Co., Ltd., and the Company provided the maximum guarantee of not more than RMB 200 million. The balance of loans as at December 31, 2018 was RMB 90.7064 million. Note 10: In 2018, the Company holds 51.00% equity of Xinxiang Meinian Health Management Co., Ltd., 51.00% equity of Wuhan Meinian Health Management Co., Ltd., and 72.00% of Fuyang Meinian Health Management Co., Ltd. Equity, 75.00% equity of Hainan Meinian Health Hospital Co., Ltd. and 100.00% equity of Beijing Meinian Meifu Clinic Co., Ltd. as pledge, who borrowed RMB 28.12 million from Ping An Bank Co., Ltd. Shanghai Branch, as at December 31, 2018, the balance of loans was RMB 253.08 million. Note 11: In 2017, Haikou Ciming Health Checkup Clinic (General Partnership), a subsidiary of the Company, borrowed RMB 1.5 million from Haikou Branch of Postal Savings Bank of China Co., Ltd. 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

117

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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. As at December 31, 2018, the balance of the loan was RMB 0.9581 million. Note 12: In 2017, Haikou Ciming Health Outpatient (General Partnership), a subsidiary of the Company, borrowed RMB 1.20 million from China Post Savings Bank Co., Ltd. Haikou Haiken South 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 1.2 million. As at December 31, 2018, the balance of the loan was RMB 0.8242 million. Note 13: In 2018, Jiaxing Meinian Health Management Co., Ltd., a subsidiary of the Company, borrowed RMB 1.5 million from Zhejiang Hecheng Rural Commercial Bank Co., Ltd. Nanhu Branch. The shareholder Xu Yongjun uses his owed houses, which located in Zhonghuan West Road, Economic Development Zone, Xiuzhou District, Jiaxing City. Room 7-A, Room 7-B, Building B, Ocean Building No. 1000 (ownership certificate No.: Jiatu Guoyong (2007) No. 272694, Jiatu National Use (2007) No. 272696, Jia House ownership certificate Hezi No. 00204734, Jia House ownership certificate Hezi No. 00204808) as a mortgage, the maximum insured amount is RMB 2.14 million, and the balance of loans as at December 31, 2018 is RMB 1.5 million. Note 14: In 2017, the Company provided guarantees for the subsidiary Bank of China Great Health Industry (Group) Co., Ltd. to Nanjing Bank Co., Ltd. Shanghai Branch Bank for RMB 100 million. The balance of loans as at December 31, 2018 was RMB 40 million. Note 15: In 2017, the Company provided guarantees for the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to Ping An Bank Co., Ltd. Shanghai Branch for RMB 235.50 million. The balance of loans as at December 31, 2018 was RMB 201.95 million. Note 16: In 2018, the Company provided guarantees for the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Ping An Bank Co., Ltd. Shanghai Branch for RMB 100 million. The balance of loans as at December 31, 2018 was RMB 97.5 million. Note 17: In 2018, the Company provided guarantees for the subsidiary, Meinian

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Onehealth Industry (Group) Co., Ltd., to Ping An Bank Co., Ltd. Shanghai Branch for RMB 300 million. The balance of loans as at December 31, 2018 was RMB 292.50 million. Note 18: In 2018, Hainan Meinian Onehealth Hospital Co., Ltd., a subsidiary of the Company, provided joint and several liability guarantees by Qibin Sha, Xiaofeng Liu and Hainan Liushahe Decoration Engineering Co., Ltd., with a maximum insured amount of RMB 19 million. Sign a fixed asset loan contract with China Postal Savings Bank Co., Ltd. Haikou Branch. The balance of the loan as at December 31, 2018 was RMB 13.0048 million. Note 19: In 2018, the Company provided guarantees for the subsidiary Company, Meinian Onehealth Industry (Group) Co., Ltd., to Ping An Bank Co., Ltd. Shanghai Branch for RMB 80 million. The balance of loans as at December 31, 2018 was RMB 80 million. Note 20: In 2018, the Company provided guarantees to the subsidiary Meinian Onehealth Industry (Group) Co., Ltd. to China Minsheng Bank Co., Ltd. Shanghai Branch for RMB 100 million. The balance of loans as at December 31, 2018 was RMB 100 million. Note 21: The long-term borrowing rate range is 4.7500% to 6.6500%. 27. Bonds payable (1) Bonds payable Items Closing balance Opening balance 17 Meinian MTN001 397,778,749.98 396,498,769.88 18 Meinian 01 498,344,896.76 Total 896,123,646.74 396,498,769.88

(2) Increase and decrease of bonds payable Date of Term to Opening Name of Bond Face value Issuing value issuance maturity balance 17 Meinian 400,000,000.00 June 5, 2017 3 years 396,037,735.85 396,498,769.88 MTN001 March 19, 18 Meinian 01 500,000,000.00 3 years 497,641,509.43 2018 Subtotal 900,000,000.00 893,679,245.28 396,498,769.88 Less: Part of the year-end balance due within one year Total 900,000,000.00 893,679,245.28 396,498,769.88

(Cont.)

119

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Interest Amortization of Repayme Name of Bond Issued this year accrued by premium and nt this Closing balance book value discount year 17 Meinian -1,279,980.10 397,778,749.98 MTN001 18 Meinian 01 497,641,509.43 -703,387.33 498,344,896.76 Subtotal 497,641,509.43 -1,983,367.43 896,123,646.74 Less: Part of the year-end balance due within one year Total 497,641,509.43 -1,983,367.43 896,123,646.74

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 return options. 28. Long-term payable Items Closing balance Opening balance Long-Term Payable 99,752,675.75 91,850,977.73 Special accounts payable 800,000.00 800,000.00 Total 100,552,675.75 92,650,977.73

(1) Long-Term Payable Items Closing balance Opening balance VAT payable for finance lease 82,668,550.07 54,325,109.62 Equipment under finance lease 14,088,743.57 36,423,030.93 Margin payable for finance lease 32,833,482.50 11,398,705.00 Equipment for leaseback 30,883,725.27 4,508,519.36 Equipment under installment 280,000.00 1,666,532.19 Less: Due within one year (Note VI. 24 61,001,825.66 16,470,919.37 Total 99,752,675.75 91,850,977.73

(2) Special account payable Increase in Decrease in Opening Closing Reasons for the Items the current the current balance balance formation year year Taian Ciming health The finance bureau examination 800,000.00 800,000.00 appropriated special construction project funds Total 800,000.00 800,000.00 ——

Note: For Tai’an Ciming Health Checkup construction project, Taian Meinian OnePhysical Examination Management Co., Ltd., the subsidiary of the Company,

120

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 received special fund in the amount of RMB 800,000.00 offered by Tai’an Municipal Finance Bureau according to the document of Tai’an Municipal Finance Bureau and Tai’an Development and Reform Commission, Notification on Allotment of “Allotment Transferred into Borrowing” Fund for Municipal Service Industry Development Guidance Project 2014. As at 31 December 2018, the project was not accepted. 29. Deferred income Increase in Decrease in Opening Closing Reasons for the Items the current the current balance balance formation year year Government Government subsidy 5,000,000.00 50,000.00 4,950,000.00 subsidies related to assets Total 5,000,000.00 50,000.00 4,950,000.00 —

Including, projects involving government subsidies: The amount of Other New subsidy non-operating income Related to Opening Other Closing Items amounts this income is amount is assets/ben balance changes balance year included in the included in efits current year this year SME public service platform Related to 5,000,000.00 50,000.00 4,950,000.00 construction assets subsidy Total 5,000,000.00 50,000.00 4,950,000.00

Note: On December 14, 2018, the Beijing Municipal Commission of Economics and Information Technology received a subsidy of RMB 5 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. 30. Other non-current liabilities

Items Closing balance Opening balance Equity of other partners of Haikou Ciming Health Checkup 330,675.54 212,643.51 Clinic (General Partnership) Total 330,675.54 212,643.51

31. Share capital Increase and decrease in the current year (+\-) Issuance Accumulation Items Opening balance Shares Closing balance New fund Other Subtotal donation shares Share transfer Total 2,601,305,797.00 52 0,261,159.00 520,261,159.00 3,121,566,956.00 shares 32. Capital reserve

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Opening balance Increase Decrease Closing balance

Capital premium 2,444,954,289.85 33,377,513.59 1,146,460,610.80 1,331,871,192.64

Total 2,444,954,289.85 33,377,513.59 1,146,460,610.80 1,331,871,192.64

Note 1: According to the “Proposal on the Profit Distribution Plan for 2017” in the shareholders' meeting passed on May 15, 2018. Based on the share capital of 2,601,305,797 shares, the capital reserve will be transferred to all shareholders for every 10 shares converted into 2 shares, and the capital reserve will be reduced by RMB 520,261,159.00. Note 2: Current year, under the common control, merged with Meiyin Health Technology (Beijing) Co., Ltd. (hereinafter referred to as “Meiyin Gene”). According to the provisions of the Accounting Standards for Business Enterprises, retrospective adjustment of the consolidated statements for current year, the annual capital reserve- capital premium 2017 annual report was increased to RMB 87,491,200.00. Due to the actual completion of the business combination under the common control this year, the retained earnings of the Meiyin Gene belonging to the Company before the merger was negative RMB 32,486,419.19. Increase the capital reserve- capital premium for the current year, and reduce the capital reserve-capital premium of RMB 87,491,200.00 due to retrospective reduction. The difference between the investment cost paid by the Company and the net assets of Meiyin Gene due to the merger date is RMB 332,667,219.19, and the capital reserve-capital premium is reduced. Note 3: Note 3: The Company acquired the minority shareholder's equity this year, and the difference between the payment consideration and the share of the shareholding according to the new shareholding ratio was RMB 205,849,043.15, reducing the capital reserve-capital premium. In the current year, the minority shareholders' equity was disposed, and the difference between the share price and the shareholding ratio was calculated to be RMB 191,989.46, which reduced the capital reserve-capital premium. Unequal capital increase resulted in a change in net assets and an increase of RMB 891,094.40 in capital reserve. 33. Treasury stock Closing Opening Opening balance Increase Decrease balance balance The Company's shares acquired for employee stock ownership plans or 83,515,021.33 83,515,021.33 equity incentives Total 83,515,021.33 83,515,021.33

122

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Note 1: The Company repurchased the Company's shares with its own funds for the employee stock ownership plan or the equity incentive plan. The shares repurchased are measured by the cost method. In 2018, the Company repurchased 5,607,000 shares of the Company due to the implementation of equity incentives, accounting for 0.18% of the total issued shares of the Company, and the cumulative ratio of accumulated treasury shares to issued shares was 0.18%. 34. Other comprehensive income

Amount incurred for the current year

Less: Net amount Opening Amount that is recorded Attributed to Attributable to Closing Items Less: Balance before into OCI and parent non-controlling balance Income income tax transferred into company shareholders taxes this year profit or loss for after tax after tax the period Other comprehensive incomes that will be 77,933.67 440,916.85 440,916.85 518,850.52 re-classified into profit or loss Including: Translation differences arising on translation of 77,933.67 440,916.85 440,916.85 518,850.52 financial statements denominated in foreign currencies Total Other comprehensive 77,933.67 440,916.85 440,916.85 518,850.52 incomes 35. Surplus reserve Items Opening balance Increase Decrease Closing balance Statutory surplus 38,771,034.85 33,163,304.84 71,934,339.69 reserve Total 38,771,034.85 33,163,304.84 71,934,339.69

36. Undistributed profits Items Current year Prior year Undistributed profits in the Prior year before 1,498,909,518.25 867,978,788.34 adjustment Total adjusted opening undistributed profits (increase is indicated by “+” and decrease is -32,545,303.57 88,024,471.60 indicated by “-”) Opening undistributed profits after adjustment 1,466,364,214.68 956,003,259.94 Plus: Net profits attributable to equity owners of the 820,648,327.54 583,952,692.16 Company in the current year Less: Appropriation of statutory surplus reserve 33,163,304.84 37,269,496.83 Appropriation of discretionary surplus reserve

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Current year Prior year Extraction of general risk reserve Common stock dividends payable 130,065,289.85 36,322,240.59 Common stock dividends converted to equity Closing undistributed profits 2,123,783,947.53 1,466,364,214.68

Note: Due to the change in scope of consolidation caused by business combination under the common control, the undistributed profit at the beginning of the year was affected RMB -32,545,303.57. 37. Operating revenue and operating costs Amount for the current year Amount for the Prior year Items Revenue Costs Revenue Costs Main businesses 8,428,009,262.85 4,414,732,278.81 6,263,336,993.79 3,331,571,348.10 Other businesses 30,440,916.74 20,810,857.96 19,018,098.57 6,142,686.56 Total 8,458,450,179.59 4,435,543,136.77 6,282,355,092.36 3,337,714,034.66

38. Business tax and surcharge Items Current year Prior year Security fund for the disabled 7,906,960.14 4,907,368.23 Stamp tax 1,945,165.43 1,483,517.57 Property tax 697,981.54 659,471.14 Education surcharge (including local education surcharge) 623,144.22 237,953.22 Urban maintenance and construction tax 516,698.81 159,224.09 Water conservancy fund 347,122.61 105,775.66 Vehicle and vessel use tax 59,892.78 76,056.23 Others 144,147.25 193,046.82 Total 12,241,112.78 7,822,412.96

Note: Please refer to Note V. Tax for details of various taxes and additional payment standards. 39. Selling and distribution expenses Items Current year Prior year Labor costs 1,453,049,223.58 1,049,595,443.33 Advertising and promotion 120,454,511.92 101,628,347.54 expenses Car rental fee 114,705,531.68 101,942,683.61 Business expansion fees 103,202,125.81 76,302,347.57

124

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Current year Prior year Rent 64,255,064.53 34,415,852.15 Office miscellaneous fees 59,234,126.31 61,384,658.71 Conference fee 32,942,378.67 33,755,415.39 Traveling expenses 22,543,007.70 29,373,665.21 Business Hospitality 18,926,129.19 12,295,826.91 Amortization fee 11,379,405.84 5,238,049.61 Other 26,055,898.12 26,529,547.56 Total 2,026,747,403.35 1,532,461,837.59

40. Administrative expenses Items Current year Prior year Labor costs 323,959,850.03 264,252,704.72 Agent service charge 44,285,020.05 38,708,792.64 Rent 35,943,850.79 35,429,185.98 Traveling expenses 24,360,855.36 21,555,007.06 Office fees 19,713,313.13 24,025,585.85 Business entertainment fee 17,437,077.76 11,205,884.94 Depreciation 13,773,171.14 10,134,922.33 Amortization fee 13,396,958.17 15,149,671.67 Auto fees 12,996,358.36 7,310,531.25 Organization costs 10,617,251.26 6,041,189.66 Other 61,480,509.07 41,975,070.82 Total 577,964,215.12 475,788,546.92

41. Research and development expenses Items Current year Prior year Labor costs 32,535,721.58 20,046,988.39 Depreciation and Amortization fee 4,101,432.53 2,015,168.16 Other 1,160,474.10 3,288,963.51 Total 37,797,628.21 25,351,120.06

42. Financial expenses Items Current year Prior year Interest expense 249,249,601.68 104,905,656.49 Less: Interest income 21,478,550.62 10,600,174.98

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Current year Prior year Less: interest capitalization Exchange gains or losses 501,865.33 1,055,149.51 Less: exchange gains and losses capitalization amount Other 17,489,018.26 15,826,707.62 Total 245,761,934.65 111,187,338.64

43. Impairment loss of assets Items Current year Prior year Loss on bad debt 25,522,786.64 17,769,425.18 Total 25,522,786.64 17,769,425.18

44. Other income Amount included in non- Items Current year Prior year recurring gains and losses for the year Immediate refund upon 2,836,539.59 2,332,301.44 assessment of VAT Personal income tax return 1,558,711.08 1,558,711.08 Social insurance subsidies 1,059,441.28 1,402,581.18 1,059,441.28 Special fund for smart platform 600,000.00 1,400,000.00 600,000.00 SME Public Service Platform 50,000.00 175,000.00 50,000.00 Construction Subsidy Project Refund of employment reward 5,000.00 5,000.00 for disabled persons Other subsidies 4,087.69 4,087.69 Total 6,113,779.64 5,309,882.62 3,277,240.05

45. Investment income Items Current year Prior year Profits generated from control of fair value through 143,318,649.34 52,812,957.33 transactions by steps Investment income of available-for-sale financial 34,863,256.47 assets during the holding period Interests for finance lease 24,194,118.56 11,157,253.99 Investment incomes from disposal of long-term equity -10,898,617.05 -3,323,956.28 investment Investment income from disposal of available-for-sale 3,379,700.00 financial assets Interests for finance lease 553,685.99 2,594,884.95 Long-term equity investment incomes calculated by 1,123,264.19 equity method Total 195,410,793.31 64,364,404.18

46. Gains on disposal of assets 126

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Amount included into Items Current year Prior year non-recurring profit or loss this year Disposal of fixed assets -1,535,762.10 -631,113.84 -1,535,762.10 Exchange of non-monetary 20,310.38 assets Total -1,535,762.10 -610,803.46 -1,535,762.10

47. 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 33,058.76 33,058.76 assets: Government subsidies unrelated to the daily 4,122,679.25 906,386.88 4,122,679.25 activities of the Company Compensation amount received for early termination 2,187,768.33 of house renting Others 564,029.81 997,758.31 564,029.81 Total 4,719,767.82 4,091,913.52 4,719,767.82

Including: Government grants recorded into the profit or loss for the period:

Current year Prior year Accounting Related Accounting for Write off Write off Subsidy items Account for for non- Account for to assets/ non-operating costs and costs and other income operating other income earnings income expenses expenses income Pudong New Area 1,546,000.00 Financial Support Fund Special fund for 1,240,000.00 350,000.00 enterprise development First phase settlement 830,000.00 subsidy Incentives for promoting enterprises to speed up 262,000.00 72,000.00 and increase efficiency Party building fee 188,679.25 Family planning 40,000.00 allowance Special fund for pilot 9,000.00 reform Supporting funds for 270,000.00 enterprise development Incentives for emerging 200,000.00 service industry Immediate refund upon 2,836,539.59 2,332,301.44 assessment of VAT Personal income tax 1,558,711.08 return

127

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Current year Prior year Accounting Related Accounting for Write off Write off Subsidy items Account for for non- Account for to assets/ non-operating costs and costs and other income operating other income earnings income expenses expenses income Social security subsidy 1,059,441.28 1,402,581.18 Smart platform special 600,000.00 1,400,000.00 funds SME Public Service Platform Construction 50,000.00 175,000.00 Subsidy Project Return of employment reward for disabled 5,000.00 persons Other subsidies 7,000.00 4,087.69 14,386.88

Total 4,122,679.25 6,113,779.64 906,386.88 5,309,882.62

48. Non-operating expenses Amount included into non-recurring Items Current year Prior year profit or loss this year Loss from damage and retirement of 3,833,318.77 2,541,666.40 3,833,318.77 non-current assets Wherein: Loss from damage and 3,833,318.77 2,541,666.40 3,833,318.77 retirement of fixed assets External donation outlay 6,903,041.09 522,201.69 6,903,041.09 Expenditure for litigation 1,304,698.05 100,134.35 1,304,698.05 compensation Expenditure for penalty and overdue 421,295.09 1,493,934.37 421,295.09 fine Others 5,646,652.97 1,651,829.70 5,646,652.97 Total 18,109,005.97 6,309,766.51 18,109,005.97

49. Income tax expenses (1) Income Taxes Items Current year Prior year Income taxes in the current period 280,904,507.80 216,405,093.70 Deferred taxes 29,780,460.30 -9,147,307.50 Total 310,684,968.10 207,257,786.20

(2) Reconciliation from total profit Items Current year Total profits 1,283,471,534.77 Income tax expenses calculated at applicable tax rates 320,867,883.69 Effect of applicable tax rates to subsidiaries -33,484,976.33

128

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Current year Adjustment of the effects on the income tax in previous periods 1,618,385.45 Effect of non-taxable income -2,218,450.96 Impact of non-deductible costs, expenses and losses 12,414,539.95 Utilization of previously unrecognized tax losses -24,603,186.94 Influence from deductible temporary difference or deductible losses of 38,982,428.47 unrecognized deferred tax assets in the current year Change in balance of opening deferred tax asset/liabilities caused by tax rate adjustment Tax Preference -2,891,655.23 Income taxes 310,684,968.10

50. Other comprehensive incomes Please refer to Note VI.34 for details. 51. Items in statement of cash flows (1) Other cash received from operating activities Items Current year Prior year Inter-company transactions 226,171,202.02 206,398,555.35 Interest income 21,478,550.62 10,600,174.98 Subsidy income 7,344,349.14 3,762,146.99 Others 1,260,193.28 786,765.02 Total 256,254,295.06 221,547,642.34

(2) Other cash paid for operating activities Items Current year Prior year Selling expenses in cash 629,845,365.93 503,950,662.42 Administrative expenses in cash 203,981,818.09 196,608,564.73 Current accounts 161,387,597.51 309,722,857.04 Bank service charge 10,208,773.25 9,270,295.23 Other 12,920,203.55 3,425,415.75 Total 1,018,343,758.33 1,022,977,795.17

(3) Other cash received from investing activities Items Current year Prior year Rent received from finance lease and factoring 298,930,127.82 154,394,364.82 Obtaining the book capital of the subsidiary is greater 2,441,703.44 than the payment consideration Loans received 2,390,000.00 Total 301,371,831.26 156,784,364.82

129

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

(4) Other cash paid for investing activities Items Current year Prior year Finance lease and factoring 1,027,141,237.68 495,073,425.47 Special funds for handling insurance brokerage 50,260,527.71 business license Related party loans 700,000.00 Others 490,771.44 Total 1,077,401,765.39 496,264,196.91

(5) Other cash received from investing activities Items Current year Prior year Leaseback 35,500,000.00 4,410,000.00 Equipment sales installments 520,000.00 Borrowings from enterprises (non-related party) 20,000,000.00 Total 36,020,000.00 24,410,000.00

(6) Other cashes paid for financing activities Items Current year Prior year Combination consideration paid under the common 387,672,000.00 281,969,411.00 control Acquisition of minority equity payments 269,249,090.00 174,824,869.00 Payment for repurchase of shares 130,000,000.00 Margin relating to borrowing 38,030,000.00 Rent paid for finance lease 30,961,253.01 14,841,393.09 Amounts for Prior year for business combination not 20,419,456.00 12,193,600.00 involving enterprises under common control Management fees charged by bank 19,538,178.05 3,917,775.20 Rent paid for leaseback 13,154,218.00 474,600.00 Reporting fee and consulting fee paid by the 4,640,000.00 leaseback Issuance of bond related fees 3,710,000.00 Rent paid by installment payment 366,803.24 701,727.36 Issue fee 21,597,043.09 Borrowing from a business (non-related party) 20,000,000.00 Return the investment of minority shareholders 6,272,000.00 Total 917,740,998.30 536,792,418.74

52. Supplementary information for statement of cash flows (1) Supplementary Information for Statement of Cash Flows

130

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Supplementary information Current year Prior year 1. Reconciliation from net profit to cash flows from operating activities: Net profits 972,786,566.67 633,848,220.50

Add: Provision for assets impairment 25,522,786.64 17,769,425.18 Depreciation of fixed assets, depletion of oil- 309,623,762.17 211,254,125.91 and-gas assets and depreciation of biological assets Amortization of intangible assets 7,196,925.89 3,987,877.88

Amortization of long-term prepaid expenses 247,779,758.52 193,778,945.32 Loss on scrapping of fixed assets, intangible assets and other long-term assets (profit is indicated 1,535,762.10 1,553,946.92 by "-") Loss on retirement of fixed assets (profit is 3,800,260.01 1,598,522.94 indicated by “-”) Loss on change of fair value (profit is indicated by “-”) Financial expenses (profit is indicated by “-”) 251,964,735.61 112,252,750.40

Loss on investment (profit is indicated by “-”) -195,410,793.31 -64,364,404.18 Decrease in deferred tax asset (increase is -1,361,635.51 -17,276,432.55 indicated by “-”) Increase in deferred tax liabilities (decrease is 30,751,117.68 9,170,840.36 indicated by “-”) Decrease in inventory (increase is indicated by -24,243,836.78 -20,037,672.42 “-”) Decreases in operating receivables (increase is -442,166,310.15 -373,994,036.28 indicated by “-”) Increase in operating payables (decrease is 350,828,454.82 691,978,801.51 indicated by “-”) Others -1,783,860.28

Net cash flow from operating activities 1,538,607,554.36 1,399,737,051.21 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 83,812,930.40 29,460,400.00 3. Change of cash and cash equivalents: Closing balance of cash 2,390,222,654.49 2,390,117,639.69 Less: Opening balance of cash 2,390,117,639.69 1,378,076,658.50

Plus: Closing balance of cash equivalents Less: Opening balance of cash equivalents

Net increase of cash and cash equivalents 105,014.80 1,012,040,981.19

(2) Net cash paid for obtaining subsidiaries in the current year

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Items Amount Cash or cash equivalents paid in the current period for business 698,219,040.00 combination in the current year Including: Changchun Baiwei Ci Kang Hospital Co., Ltd. 51,000,000.00 Foshan Meinian Onehealth Checkup Management Co., Ltd. 49,500,000.00 Beijing Meinian Meifu Outpatient Co., Ltd. 40,176,000.00 Zhongshan Meinian Onehealth Management Co., Ltd. 30,256,000.00 Zhuzhou Meinian Onehealth & Wellness Management Co., Ltd. 30,240,000.00 Xiangtan Meinian Onehealth & Health Management Co., Ltd. 29,504,000.00 Chengdu Jinjiang Meinian Onehealth Weikang Medical Outpatient Branch 28,416,010.00 Co., Ltd. Puyang Meinian Onehealth Management Co., Ltd. 27,280,000.00 Daye Meinian Onehealth Checkup Management Co., Ltd. 26,650,000.00 Yantai Ciming Health Checkup Management Co., Ltd. 26,240,000.00 Dali Meinian Physical Examination Hospital Co., Ltd. 25,920,000.00 Xinxiang Meinian Onehealth Management Co., Ltd. 23,780,000.00 Heyuan MeiyinOnehealth Management Co., Ltd. 23,400,000.00 Wuhan Meinian Yisheng Health Management Co., Ltd. 21,000,000.00 Puer Meinian Onehealth Physical Examination Center Co., Ltd. 20,633,600.00 Dandong Meinian Onehealth & Health Management Co., Ltd. 20,400,000.00 Xinyang Meinian Onehealth Management Co., Ltd. 20,336,000.00 Huludao Meinian Onehealth Management Co., Ltd. 19,320,000.00 Suining Meinian Physical Examination Hospital Co., Ltd. 16,200,000.00 Xinjiang Puhuitai Health Management Co., Ltd. 15,697,800.00 Heze Meinian Onehealth Examination Management Co., Ltd. 15,376,000.00 Deyang Meinian Physical Examination Hospital Co., Ltd. 14,400,000.00 Linyi Meigu Health Checkup Management Co., Ltd. 13,350,000.00 Zhangzhou Meinian Onehealth & Health Management Co., Ltd. 12,960,000.00 Wuhan Meinian Health Management Co., Ltd. 12,250,000.00 Ningbo Yinzhou Yihe Comprehensive Outpatient Co., Ltd. 10,710,000.00 Songyuan Meinian Onehealth & Wellness Management Co., Ltd. 9,690,000.00 Gunagyuan Meinian Onehealth Technology Co., Ltd. 8,835,750.00 Yuxi Meinian Onehealth Industry Co., Ltd. 8,782,200.00 Yueyang Meinian Onehealth & Health Management Co., Ltd. 8,120,000.00 Handan City Meinian Onehealth Management Co., Ltd. 7,978,950.00

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Items Amount Ezhou Meinian Onehealth Management Co., Ltd. 7,619,400.00 JinzhongMeinian Onehealth Management Co., Ltd. 6,664,680.00 Jiaxing Meinian Onehealth Management Co., Ltd. 6,426,000.00 Guangdong Youyi Health Management Co., Ltd. 5,251,050.00 Kaifeng Meinian Onehealth Examination Management Co., Ltd. 3,855,600.00 Less: Cash and cash equivalents held by subsidiaries purchased 174,566,851.91 Including: Changchun Baiwei Ci Kang Hospital Co., Ltd. 878,700.56 Foshan Meinian Onehealth Checkup Management Co., Ltd. 14,312,847.09 Beijing Meinian Meifu Outpatient Co., Ltd. 1,814,665.03 Zhongshan Meinian Onehealth Management Co., Ltd. 8,917,663.84 Zhuzhou Meinian Onehealth & Wellness Management Co., Ltd. 2,818,237.12 Xiangtan Meinian Onehealth & Health Management Co., Ltd. 5,460,011.84 Chengdu Jinjiang Meinian Onehealth Weikang Medical Outpatient Branch 16,470,913.77 Co., Ltd. Puyang Meinian Onehealth Management Co., Ltd. 1,881,682.02 Daye Meinian Onehealth Checkup Management Co., Ltd. 17,726,096.38 Yantai Ciming Health Checkup Management Co., Ltd. 208,962.16 Dali Meinian Physical Examination Hospital Co., Ltd. 9,718,044.59 Xinxiang Meinian Onehealth Management Co., Ltd. 4,058,490.99 Heyuan MeiyinOnehealth Management Co., Ltd. 6,070,309.96 Wuhan Meinian Yisheng Health Management Co., Ltd. 475,169.40 Puer Meinian Onehealth Physical Examination Center Co., Ltd. 7,922,199.82 Dandong Meinian Onehealth & Health Management Co., Ltd. 2,237,934.84 Xinyang Meinian Onehealth Management Co., Ltd. 3,628,515.24 Huludao Meinian Onehealth Management Co., Ltd. 1,976,873.30 Suining Meinian Physical Examination Hospital Co., Ltd. 4,185,801.16 Xinjiang Puhuitai Health Management Co., Ltd. 533,621.05 Heze Meinian Onehealth Examination Management Co., Ltd. 1,571,055.75 Deyang Meinian Physical Examination Hospital Co., Ltd. 4,795,458.94 Linyi Meigu Health Checkup Management Co., Ltd. 403,909.96 Zhangzhou Meinian Onehealth & Health Management Co., Ltd. 8,810,279.44 Wuhan Meinian Health Management Co., Ltd. 2,068,776.17 Ningbo Yinzhou Yihe Comprehensive Outpatient Co., Ltd. 138,680.30

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Items Amount Songyuan Meinian Onehealth & Wellness Management Co., Ltd. 3,462,723.15 Gunagyuan Meinian Onehealth Technology Co., Ltd. 5,342,525.00 Yuxi Meinian Onehealth Industry Co., Ltd. 5,208,109.70 Yueyang Meinian Onehealth & Health Management Co., Ltd. 4,596,887.42 Handan City Meinian Onehealth Management Co., Ltd. 6,451,975.41 Ezhou Meinian Onehealth Management Co., Ltd. 7,619,400.00 JinzhongMeinian Onehealth Management Co., Ltd. 5,502,688.18 Jiaxing Meinian Onehealth Management Co., Ltd. 4,847,046.44 Guangdong Youyi Health Management Co., Ltd. 731,886.02 Kaifeng Meinian Onehealth Examination Management Co., Ltd. 1,718,709.87 Net cash paid for obtaining subsidiaries 523,652,188.09

(3) Cash and cash equivalents Items Closing balance Opening balance I. Cash Including: Cash on hand 6,076,636.71 5,075,327.56 Deposit in bank available for payment at 2,384,053,558.55 2,384,801,847.99 demand Other monetary funds available for 92,459.23 240,464.14 payment at demand II. Cash Equivalents Including: Bond investment due within three months III. Closing balance of cash and cash equivalents 2,390,222,654.49 2,390,117,639.69 Note: Cash and cash equivalents do not include those of the parent company and subsidiaries with restricted use. 53. Assets with restricted ownership or use right Items Closing book value Reasons of limitations

Cash and cash equivalents 104,221,127.71 Note 1,2,3,4,5 Long-term receivables 936,962,386.00 Note 6 Fixed assets 58,416,192.84 Note 7,8,9,10 Total 1,099,599,706.55

Note 1: The Company's subsidiary, Meinian Onehealth, deposited RMB 17,230,000.00 as margin at China Merchants Bank Shanghai Branch, replacing the 16.00% equity in Hainan Meinian Health Hospital Co., Ltd. in the bank's equity pledge loan in 2016. Meinian Onehealth depositing RMB 13,000,000.00 as margin at the China

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Merchants Bank Shanghai Branch, replacing the 62.00% equity of Xiamen Meinian Health Management Co., Ltd. in the bank's equity pledge loan in 2017. Meinian Onehealth deposited RMB 7,800,000.00 as margin in China Merchants Bank Shanghai Branch, which replace the 16.90% equity of Taian Meinian Onehealth Management Co., Ltd. in the bank's equity pledge loan in 2016. 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: Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, deposited RMB 15,430,000.00 as a bank acceptance bill deposit at Standard Chartered Bank (China) Co., Ltd. Shanghai Branch. Note 4: Ciming Health Checkup Management Group Wuhan Co., Ltd., a subsidiary of the Company, deposits RMB 500,000.00 as margin at the Wuhan Branch of China Minsheng Banking Co., Ltd., in order to ensure full fulfillment of its 2018 annual report of China Construction Bank Corporation Wuhan Steel City Sub-branch The obligations under the employee medical examination contract provide a performance bond. Note 5: Tianjin Meinian Investment Management Co., Ltd., a subsidiary of the Company, has had its bank deposit of RMB 600.00 frozen for ETC business. Note 6: Shanghai Meixin Financial Leasing Co., Ltd., a subsidiary of the Company, pledges the bank's book value of the Company's book value of RMB 936,962,386.00 as pledge 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) Co., Ltd. Note 7: Ciming Health Checkup Management Group Co., LTD., a subsidiary of the Company, takes the property with the ending book value of RMB 51,250,395.51 as the mortgage to Beijing Weigong Village Branch of Guangfa Bank Co., LTD. The real estate located at No. 3, 1st to 2nd Floor, Building 28, Panjiayuan, Chaoyang District (Proof No.: Beijing (2016) Chaoyang District Immovable Property No. 0068139), Chaoyang District Panjiayuan Building No. 28, 1st to 2nd Floor, Commercial (Wit No.: Beijing (2016) Chaoyang District Immovable Property Rights No. 0068208), Unit 1, 201, 1st to 2nd Floor, No. 7 Beitucheng West Road, Chaoyang District (Property Certificate: Beijing

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(2016) Chaoyang District Immovable Property Rights No. 0076295) and Chaoyang District Beitucheng West Road No. 7 2 to 3, Level 2, Unit 201 (Property Certificate: Beijing (2016) Chaoyang District, Immovable Property Rights No. 0076294) Note 8: Hainan Meinian Onehealth Hospital Co., LTD., a subsidiary of the Company, signed an after-sale leaseback agreement with Ping An International Financial Leasing Co., Ltd. The fixed assets of Hainan Meinian Onehealth Hospital Co., LTD. are used as the leaseback. The book value of the leasehold at the end of the lease period is RMB 2,792,193.56. Note 9: Haikou Ciming Health Checkup Clinic (General Partnership), a subsidiary of the Company, the property with a book value of RMB 2,459,273.19 at the end of the period was used as a mortgage to make loans to the China Postal Savings Bank Co., Ltd. Haikou Branch. The property is under the name of Hainan Meinian Health Hospital Co., Ltd., which is located in A301, 3rd Floor, Binjiang Holiday City, No. 362 Binjiang Road, Qiongshan District, Haikou, (Warrant No.: Haikou City Real Estate Certificate Haifangzi No. HK454142). Note 10: Haikou Ciming Health Checkup 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 Checkup Clinic (general partnership) as lease items. The book value of the leased goods at the end of the period is RMB 1,914,330.58. 54. Foreign currency monetary item Closing Balance of Foreign Closing translated Items Rate of translation Currency RMB Balance Cash and cash equivalents Including: USD 1,389,093.40 6.8632 9,533,625.82 SGD 139,300.00 5.0062 697,363.66 Other receivables Including: USD 1,620.00 6.8632 11,118.38 Other payables Including: USD 3,407.90 6.8632 23,389.10

Note: The base currency of Meijia Health Holdings Co., Ltd. is HKD. The ending balance for the year is USD and SGD. First, it is converted from USD to HKD at the exchange rate of 7.83297 and SGD to HKD at the exchange rate of 5.7135, and then used the exchange rate of 0.8762 from HKD to RMB. 55. Government grants 136

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Basic condition of government grants The amount Items Amount Presentation project recorded as current profit or loss Immediate refund of 2,836,539.59 Other income 2,836,539.59 VAT Pudong New Area Non-operating 1,546,000.00 1,546,000.00 Financial Support Fund income Special fund for Non-operating 1,240,000.00 1,240,000.00 enterprise development income First phase settlement Non-operating 830,000.00 830,000.00 subsidy income Steady post subsidies 752,734.88 Other income 752,734.88 Smart platform special 600,000.00 Other income 600,000.00 funds Incentives for promoting enterprises Non-operating 262,000.00 262,000.00 to speed up and income increase efficiency Non-operating Party building fee 188,679.25 188,679.25 income Social insurance 110,949.00 Other income 110,949.00 subsidies Reemployment 102,562.40 Other income 102,562.40 difficulty subsidy Employment subsidy 68,305.00 Other income 68,305.00 for college students SME Public Service Platform Construction 50,000.00 Other income 50,000.00 Subsidy Project Family planning Non-operating 40,000.00 40,000.00 subsidy income College graduates' 24,890.00 Other income 24,890.00 training subsidies Non-operating Support project fund 9,000.00 9,000.00 income Return of employment reward for disabled 5,000.00 Other income 5,000.00 persons Other income / Non- Other subsidies 11,087.69 11,087.69 operating income

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 Equity When the equity is Cost for Shareholding Name of acquiree acquisition acquired acquiring equity ratio (%) method Guangdong Youyi Health Feb 1, 2018 7,501,500.00 50.01 Purchase Management Co., Ltd.

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Equity When the equity is Cost for Shareholding Name of acquiree acquisition acquired acquiring equity ratio (%) method Ningbo Yinzhou Yihe Comprehensive Outpatient Feb 1, 2018 15,300,000.00 51.00 Purchase Co., Ltd. Capital Wuhan Meinian Yisheng Jun 1, 2018 30,000,000.00 100.00 increase and Health Management Co., Ltd. purchase Capital Changchun Baiwei Ci Kang Jun 1, 2018 56,000,000.00 80.00 increase and Hospital Co., Ltd. purchase Linyi Meigu Health Checkup Jun 30, 2018 13,350,000.00 100.00 Purchase Management Co., Ltd. Wenzhou Aoya Hospital Co., Dec 31, 2018 26,764,000.00 82.00 Purchase Ltd. (Cont.) Income of Net profits of Recognition acquiree from acquiree from Name of acquiree Purchase date basis of the purchase the purchase purchase date date to the end date to the end of the year of the year Guangdong Youyi Health Feb 1, 2018 Taking control 1,154,808.54 -2,559,053.99 Management Co., Ltd. Ningbo Yinzhou Yihe Comprehensive Outpatient Feb 1, 2018 Taking control 1,743,216.05 -7,920,614.10 Co., Ltd. Wuhan Meinian Yisheng Health Management Co., Jun 1, 2018 Taking control 4,184,710.65 -2,143,303.31 Ltd. Changchun Baiwei Ci Kang Jun 1, 2018 Taking control 21,093,973.63 4,400,045.53 Hospital Co., Ltd. Linyi Meigu Health Checkup Jun 30, 2018 Taking control 97,087.38 -773,091.66 Management Co., Ltd. Wenzhou Aoya Hospital Co., Dec 31, 2018 Taking control Ltd. Condition about realizing business combination step by step and acquiring control over the reporting period Equity When the equity is Cost for acquiring Shareholding Name of merged party acquisition acquired equity ratio (%) method Wuhan Meinian Health Apr 1, 2018 17,850,000.00 51.00 Purchase Management Co., Ltd. Zhangzhou Meinian Onehealth & Health Apr 1, 2018 18,360,000.00 51.00 Purchase Management Co., Ltd. Deyang Meinian Physical Examination Apr 1, 2018 20,400,000.00 51.00 Purchase Hospital Co., Ltd. Suining Meinian Physical Examination Apr 1, 2018 22,950,000.00 51.00 Purchase Hospital Co., Ltd.

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Equity When the equity is Cost for acquiring Shareholding Name of merged party acquisition acquired equity ratio (%) method Xinyang Meinian Onehealth Management Apr 1, 2018 25,296,000.00 51.00 Purchase Co., Ltd. Heze Meinian Onehealth Examination Apr 1, 2018 25,296,000.00 51.00 Purchase Management Co., Ltd. Capital Yueyang Meinian increase Onehealth & Health Apr 1, 2018 26,520,000.00 51.00 and Management Co., Ltd. purchase Huludao Meinian Onehealth Management Apr,1 2018 27,300,000.00 65.00 Purchase Co., Ltd. Dandong Meinian Onehealth & Health Apr 1, 2018 28,000,000.00 70.00 Purchase Management Co., Ltd. Xinxiang Meinian Onehealth Management Apr 1, 2018 29,580,000.00 51.00 Purchase Co., Ltd. Yantai Ciming Health Checkup Management Apr 1, 2018 31,040,000.00 97.00 Purchase Co., Ltd. Dali Meinian Physical Examination Hospital Apr 1, 2018 36,720,000.00 51.00 Purchase Co., Ltd. Capital Xiangyang Meinian increase Onehealth Management Apr 1, 2018 44,640,000.00 72.00 and Co., Ltd. purchase Capital Zhuzhou Meinian increase Onehealth & Wellness Apr 1, 2018 51,000,000.00 100.00 and Management Co., Ltd. purchase Foshan Meinian Onehealth Checkup Apr 1, 2018 63,000,000.00 70.00 Purchase Management Co., Ltd. Xiangtan Meinian Onehealth & Health May 1, 2018 36,704,000.00 91.76 Purchase Management Co., Ltd. Chengdu Jinjiang Meinian Onehealth Weikang Medical May 1, 2018 52,800,000.00 55.00 Purchase Outpatient Branch Co., Ltd. Zhongshan Meinian Onehealth Management Jun 1, 2018 39,680,000.00 80.00 Purchase Co., Ltd. Beijing Meinian Meifu Jun 1, 2018 49,600,000.00 100.00 Purchase Outpatient Co., Ltd. Puer Meinian Onehealth Physical Examination Sept 1, 2018 33,728,000.00 68.00 Purchase Center Co., Ltd.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Equity When the equity is Cost for acquiring Shareholding Name of merged party acquisition acquired equity ratio (%) method Daye Meinian Onehealth Checkup Sept 1, 2018 33,150,000.00 51.00 Purchase Management Co., Ltd. Heyuan Meiyin Onehealth Management Sept 1, 2018 30,600,000.00 68.00 Purchase Co., Ltd. Ezhou Meinian Onehealth Management Dec 1, 2018 21,165,000.00 51.00 Purchase Co., Ltd. Kaifeng Meinian Onehealth Examination Dec 1, 2018 9,363,600.00 51.00 Purchase Management Co., Ltd. Jinzhong Meinian Onehealth Management Dec 1, 2018 20,196,000.00 51.00 Purchase Co., Ltd. Handan City Meinian Onehealth Management Dec 1, 2018 22,797,000.00 51.00 Purchase Co., Ltd. Xinjiang Puhuitai Health Dec 1, 2018 38,000,000.00 100.00 Purchase Management Co., Ltd. Yuxi Meinian Onehealth Dec 1, 2018 25,092,000.00 51.00 Purchase Industry Co., Ltd. Gunagyuan Meinian Onehealth Technology Dec 31, 2018 23,100,000.00 60.00 Purchase Co., Ltd. Songyuan Meinian Onehealth & Wellness Dec 31, 2018 22,800,000.00 60.00 Purchase Management Co., Ltd. Jiaxing Meinian Onehealth Management Dec 31, 2018 17,850,000.00 51.00 Purchase Co., Ltd. Note 1: Guangzhou Meinian Onehealth Medical Technology Co., Ltd., the subsidiary of the Company, acquired 50.01% shareholding of Guangdong Youyi Health Management Co., Ltd. with cash on February 1, 2018. The acquisition cost was RMB 7,501,500.00. After the acquisition, the Company gained the right to control. Note 2: Shanghai Meiheng Outpatient Co., Ltd., the subsidiary of the Company, acquired 51.00% shareholding of Ningbo Yinzhou Yihe Comprehensive Outpatient Co., Ltd. with cash on February 1 ,2018. The acquisition cost was RMB 15,300,000.00. After the acquisition, the Company gained the right to control. Note 3: The subsidiary of the Company, Wuhan Meinian Onehealth Checkup Management Co., Ltd., acquired 100.00% shareholding of Wuhan Meinian Yisheng Health Management Co., Ltd. with cash and equity capital increase on June 1, 2018. The acquisition cost was RMB 30,000,000.00. After the acquisition, the Company gained the right to control. Note 4: The subsidiary of the Company, Ciming Health Checkup Management 140

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Group Co., Ltd., acquired 80.00% shareholding of Changchun Baiwei Health Management Co., Ltd., through buying and equity capital increasing with cash payment on June 1, 2018. The acquisition cost was RMB 56,000,000.00. After the acquisition, the Company gained the right to control. Note 5: Linyi Meinian Health Checkup Management Co., Ltd., the subsidiary of the Company, acquired 100.00% shareholding of Linyi Meigu Health Checkup Management Co., Ltd. with cash on June 30, 2018. The acquisition cost was RMB 13,350,000.00. After the acquisition, the Company gained the right to control. Note 6: The subsidiary of the Company, Shanghai Meiheng Outpatient Co., Ltd. acquired 82.00% shareholding of Wenzhou Aoya Hospital Co., Ltd. with cash on December 31, 2018. The acquisition cost was RMB 26,764,000.00. After the acquisition, the Company gained the right to control. Note 7: On July 6, 2017 and December 29, 2017, the subsidiary of the Company, Wuhan Meinian Onehealth Checkup Management Co., Ltd., acquired 16.00% shareholding of Wuhan Meinian Health Management Co., Ltd. with cash. The acquisition cost was RMB 1,920,000.00 in total. On April 1, 2018, Wuhan Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company acquired 35.00% shareholding of Wuhan Meinian Health Management Co., Ltd. with cash. The acquisition cost was RMB 12,250,000.00. After the acquisition, the Company gained the right to control. Note 8: Meinian Onehealth Industry (Group) Co., Ltd., the subsidiary of the Company, acquired 15.00% shareholding of Bozhou Meinian Onehealth & Health Management Co., Ltd. with cash on October 21, 2015. The acquisition cost was RMB 1,500,000.00. On April 19, 2017, Meinian Onehealth Industry (Group) Co., Ltd. added the capital of RMB 300,000.00 at equal proportions. On April 1, 2018, the subsidiary of the Company, Meinian Onehealth Industry (Group) Co., Ltd. acquired 36.00% shareholding of Bozhou Meinian Onehealth & Health Management Co., Ltd. with cash. The acquisition cost was RMB 12,960,000.00. 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 15.00% shareholding of Deyang Meinian Physical Examination Hospital Co., Ltd. with cash on July 28, 2016. The acquisition cost was RMB 1,500,000.00. On April 1, 2018, Chengdu Meinian Onehealth Health Management Co., Ltd., the subsidiary of the Company, acquired 36.00% shareholding of Deyang

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Meinian Physical Examination Hospital Co., Ltd. with cash. The acquisition cost was RMB 14,400,000.00. After the acquisition, the Company gained the right to control. Note 10: Chengdu Meinian Onehealth Health Management Co., Ltd. the subsidiary of the Company, acquired 15.00% shareholding of Suining Meinian Physical Examination Hospital Co., Ltd. with cash, RMB 1,332,000.00 on September 27, 2016 and RMB 468,000.00 on October 14, 2016. The acquisition cost was RMB 1,800,000.00 in total. On April 1, 2018, the subsidiary of the Company, Chengdu Meinian Onehealth Health Management Co., Ltd. acquired 36.00% shareholding of Suining Meinian Physical Examination Hospital Co., Ltd. with cash payment. The acquisition cost was RMB 16,200,000.00. After the acquisition, the Company gained the right to control. Note 11: Zhengzhou Onehealth Technology Co., Ltd., the subsidiary of the Company, acquired 10.00% shareholding of Xinyang Meinian Onehealth Management Co., Ltd. with cash on July 19, 2016. The acquisition cost was RMB 1,000,000.00. On April 1, 2018, the subsidiary of the Company, Zhengzhou Onehealth Technology Co., Ltd., acquired 41.00% shareholding of Xinyang Meinian Onehealth Management Co., Ltd. with cash. The acquisition cost was RMB 20,336,000.00. After the acquisition, the Company gained the right to control. Note 12: Tai'an Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company, acquired 20.00% shareholding of Heze Meinian Onehealth Examination Management Co., Ltd. with cash of RMB 1,000,000.00 and additional cash of RMB 2,400,000.00 on April 15, 2016. The acquisition cost was RMB 3,400,000.00 in total. On April, 1 2018, the subsidiary of the Company, Jinan Onehealth and Onehealth Checkup Management Co., Ltd. acquired 31.00% shareholding of Heze Meinian Onehealth Examination Management Co., Ltd. through cash payment. The acquisition cost was RMB 15,376,000.00. After the acquisition, the Company gained the right to control. Note 13: Changsha Meinian Onehealth & Health Management Co., Ltd., the subsidiary of the Company, acquired 16.00% shareholding of Yueyang Meinian Onehealth & Health Management Co., Ltd. with cash on November 14, 2016. The acquisition cost was RMB 1,920,000.00. On April 1, 2018, the subsidiary of the Company, Changsha Meinian Onehealth & Health Management Co., Ltd. acquired 35.00% shareholding of Yueyang Meinian Onehealth & Health Management Co., Ltd. through buying and equity capital increasing with cash payment. The acquisition cost was RMB 20,120,000.00. After the acquisition, the Company gained the right to control.

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Note 14: Shenyang Onehealth Technology Health Management Co., Ltd., the subsidiary of the Company, acquired 19% shareholding of Huludao Meinian Onehealth Management Co., Ltd. with cash on September 21, 2017. The acquisition cost was RMB 3,800,000.00. On April 1, 2018, Shenyang Onehealth Technology Health Management Co., Ltd., the subsidiary of the Company, acquired 46.00% shareholding of Huludao Meinian Onehealth Management Co., Ltd. through cash payment. The acquisition cost was RMB 19,320,000.00. After the acquisition, the Company gained the right to control. Note 15: Shenyang Onehealth Technology Health Management Co., Ltd., the subsidiary of the Company, acquired 19.00% shareholding of Dandong Meinian Onehealth & Health Management Co., Ltd. with cash on 3 March 2016. The acquisition cost was RMB 2,280,000.00. On April 1, 2018, Shenyang Onehealth Technology Health Management Co., Ltd., the subsidiary of the Company, acquired 51.00% shareholding of Dandong Meinian Onehealth & Health Management Co., Ltd. The acquisition cost was RMB 20,400,000.00. After the acquisition, the Company gained the right to control. Note 16: Zhengzhou Onehealth Technology Co., Ltd., the subsidiary of the Company, acquired 10.00% shareholding of Xinxiang Meinian Onehealth Management Co., Ltd. with cash, RMB 500,000.00 on March 17, 2015 and RMB 150,000.00 on December 14, 2015. The acquisition cost was RMB 23,780,000.00 in total. After the acquisition, the Company gained the right to control. Note 17: Tai'an Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company, acquired 15.00% shareholding of Yantai Ciming Health Checkup Management Co., Ltd. with cash, RMB 1,000,000.00 on Aug 25, 2016 and RMB 500,000.00 on September 9, 2016. The acquisition cost was RMB 1,500,000.00 in total. On April 1, 2018, Jinan Onehealth and Onehealth Checkup Management Co., Ltd., the subsidiary of Yantai Ciming Health Checkup Management Co., Ltd. acquired 82.00% shareholding of the Company through cash payment. The acquisition cost was RMB 26,240,000.00. After the acquisition, the Company gained the right to control. Note 18: Yunnan Meinian Onehealth Healthcare Co., Ltd., the subsidiary of the Company, acquired 15.00% shareholding of Dali Meinian Physical Examination Hospital Co., Ltd. with cash on September 1, 2016. The acquisition cost was RMB 2,250,000.00. On April, 1 2018, Chengdu Meinian Onehealth Health Management Co., Ltd., the subsidiary of the Company, acquired 36.00% shareholding of Dali Meinian Physical Examination Hospital Co., Ltd. through cash payment. The acquisition cost was RMB 25,920,000.00. After the acquisition, the Company gained the right to control.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Note 19: Wuhan Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company, acquired 10.00% shareholding of Xiangyang Meinian Onehealth Management Co., Ltd. with cash payment, RMB 400,000.00 on February 5, 2015; RMB 400,000.00 on April 30, 2015; RMB 400,000.00 on July 9, 2015. The acquisition cost was RMB 1,200,000.00 in total. On April 1, 2018, Wuhan Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company, acquired 62.00% shareholding of Xiangyang Meinian Onehealth Management Co., Ltd. through buying and equity capital increasing with cash payment. The acquisition cost was RMB 39,680,000.00. After the acquisition, the Company gained the right to control. Note 20: Changsha Meinian Onehealth & Health Management Co., Ltd., the subsidiary of the Company, acquired 16.00% shareholding of Zhuzhou Meinian Onehealth & Wellness Management Co., Ltd. with cash payment, RMB 500,000.00 on July 18, 2017; RMB 1,420,000.00 on June 9, 2017. The acquisition cost was RMB 1,920,000.00 in total. On April 1, 2018, Changsha Meinian Onehealth & Health Management Co., Ltd., the subsidiary of the Company, acquired 84.00% shareholding of Zhuzhou Meinian Onehealth & Wellness Management Co., Ltd. through buying and equity capital increasing with cash payment. The acquisition cost was RMB 45,240,000.00. After the acquisition, the Company gained the right to control. Note 21: On September 22, 2015, the Company's subsidiary, Shenzhen Meinian Onehealth & Health Management Co., Ltd. obtained 15.00% equity in Foshan Meinian Onehealth Checkup Management Co., Ltd. in cash, and obtained a cost of RMB 1,800,000.00. On February 17, 2017, the Japanese Company's subsidiary, Shenzhen Meinian Onehealth & Health Management Co., Ltd. increased its capital by RMB 4,500,000.00. On February 1, 2018, the Japanese Company's subsidiary, Shenzhen Meinian Onehealth & Health Management Co., Ltd., reduced the capital by RMB 2,250,000.00. On April 1, 2018, the Japanese Company's subsidiary, Shenzhen Meinian Onehealth & Health Management Co., Ltd. paid 55.00% of the Company's equity with cash, and obtained a cost of RMB 49,500,000.00. After the purchase, the Company obtained its control. Note 22: Changsha Meinian Onehealth & Health Management Co., Ltd., the subsidiary of the Company, acquired 18.00% shareholding of Xiangtan Meinian Onehealth & Health Management Co., Ltd. with cash payment, RMB 1,000,000.00 on October 14, 2016, RMB 200,000.00 on October 17, 2017; RMB 2,400,000.00 on October 18, 2017. The acquisition cost was RMB 3,600,000.00 in total. On May1, 2018,

144

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Changsha Meinian Onehealth & Health Management Co., Ltd., the subsidiary of the Company, acquired 73.76% shareholding of Xiangtan Meinian Onehealth & Wellness Management Co., Ltd. with cash. The acquisition cost was RMB 29,504,000.00. After the acquisition, the Company gained the right to control. Note 23: Chengdu Meinian Onehealth Health Management Co., Ltd., the subsidiary of the Company, acquired 18.00% shareholding of Chengdu Jinjiang Meinian Onehealth Weikang Medical Outpatient Branch Co., Ltd. with cash investment, RMB 1,050,000.00 on September 22, 2015; and through capital increasement with cash payment, RMB 450,000.00 on March 15, 2016, RMB 8,950,000.00 on August 18, 2017. The acquisition cost was RMB 13,300,000.00 in total. On May 1, 2018, Chengdu Meinian Onehealth Health Management Co., Ltd., the subsidiary of the Company, acquired 37.00% shareholding of Chengdu Jinjiang Meinian Onehealth Weikang Medical Outpatient Branch Co., Ltd. with cash. The acquisition cost was RMB 35,520,000.00. After the acquisition, the Company gained the right to control. Note 24: Guangzhou Meinian Onehealth Medical Technology Co., Ltd. ， the subsidiary of the Company acquired 19.00% shareholding of Zhongshan Meinian Onehealth Management Co., Ltd. with cash on October 28, 2016. The acquisition cost was RMB 2,280,000.00. On June 1, 2016, Guangzhou Meinian Onehealth Medical Technology Co., Ltd.，the subsidiary of the Company acquired 82.00% shareholding of Zhongshan Meinian Onehealth Management Co., Ltd. with cash. The acquisition cost was RMB 30,256,000.00. After the acquisition, the Company gained the right to control. Note 25: In June 2016, Beijing Meinian Health Technology Co., Ltd., the subsidiary of the Company registered and established Beijing Meinian Meifu Outpatient Co., Ltd. In March 2017, other shareholders of Beijing Meinian Health Technology Co., Ltd. increased capital on one side, and the shareholding diluted to 19.00% of Beijing Meinian Meifu Outpatient Co., Ltd. On Jun 1, 2016, Beijing Meinian Health Technology Co., Ltd., the subsidiary of the Company acquired 81.00% shareholding of Beijing Meinian Meifu Outpatient Co., Ltd. with cash. The acquisition cost was RMB 40,176,000.00. After the acquisition, the Company gained the right to control. Note 26: On May 26, 2016, Yunnan Meinian Onehealth Healthcare Co., Ltd., the subsidiary of the Company and other founders jointly initially established Puer Meinian Onehealth Physical Examination Center Co., Ltd. with 16.00% shareholding. On Sept 1, 2018, Yunnan Meinian Onehealth Healthcare Co., Ltd., the subsidiary of the Company acquired 52.00% shareholding of Puer Meinian Onehealth Physical

145

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Examination Center Co., Ltd. with cash consideration of RMB 25,792,000.00. After the acquisition, the Company gained the right to control. Note 27: On Dec 23, 2014, Wuhan Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company and other founders jointly initially established Daye Meinian Onehealth Checkup Management Co., Ltd. with 10.00% shareholding. On Sept 1, 2018, Wuhan Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company acquired 41.00% shareholding of Daye Meinian Onehealth Checkup Management Co., Ltd. with cash consideration of RMB 26,650,000.00. After the acquisition, the Company gained the right to control. Note 28: Guangzhou Meinian Onehealth Medical Technology Co., Ltd., the subsidiary of the Company acquired 16.00% shareholding of Heyuan Meiyin Onehealth Management Co., Ltd. with cash on Jun 12, 2016. The acquisition cost was RMB 1,920,000.00. On Sept 1, 2018 Guangzhou Meinian Onehealth Medical Technology Co., Ltd., the subsidiary of the Company acquired 52.00% shareholding of Heyuan Meiyin Onehealth Management Co., Ltd. with cash consideration of RMB 23,400.000.00. After the acquisition, the Company gained the right to control. Note 29: Wuhan Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company acquired 15.00% shareholding of Ezhou Meinian Onehealth Management Co., Ltd. with cash on Mar 5, 2016. The acquisition cost was RMB 1,950,000.00. On Oct 1, 2018 Wuhan Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company acquired 36.00% shareholding of Ezhou Meinian Onehealth Management Co., Ltd. with cash consideration of RMB 14,940.000.00. After the acquisition, the Company gained the right to control. Note 30: On Nov 11, 2015, Tai'an Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company and other founders jointly initially established Kaifeng Meinian Onehealth Examination Management Co., Ltd. with 30.00% shareholding. On Dec 1, 2018, Tai'an Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company acquired 21.00% shareholding of Kaifeng Meinian Onehealth Examination Management Co., Ltd. with cash consideration of RMB 3,855,600.00. After the acquisition, the Company gained the right to control. Note 31: On Mar 29, 2017, Taiyuan Meinian Onehealth Technology Onehealth Management Co., Ltd., the subsidiary of the Company and other founders jointly initially established Jinzhong Meinian Onehealth Management Co., Ltd. with 18.00% shareholding. On Dec 1, 2018, Taiyuan Meinian Onehealth Technology Onehealth

146

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Management Co., Ltd., the subsidiary of the Company acquired 33.00% shareholding of Jinzhong Meinian Onehealth Management Co., Ltd. with cash consideration of RMB 13,068,000.00. After the acquisition, the Company gained the right to control. Note 32: On Jul 4, 2016, Shijiazhuang Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company and other founders jointly initially established Handan City Meinian Onehealth Management Co., Ltd. with 16.00% shareholding. On Dec 1, 2018, Shijiazhuang Meinian Onehealth Checkup Management Co., Ltd., the subsidiary of the Company acquired 35.00% shareholding of Handan City Meinian Onehealth Management Co., Ltd. with cash consideration of RMB 15,645,000.00. After the acquisition, the Company gained the right to control. Note 33: Xi’an Meinian Onehealth Physical Examination Management Co., Ltd., the subsidiary of the Company acquired 19.00% shareholding of Xinjiang Puhuitai Health Management Co., Ltd. with cash on Mar 23, 2017. The acquisition cost was RMB 4,222,200.00. On Dec 1, 2018, Xi’an Meinian Onehealth Physical Examination Management Co., Ltd., the subsidiary of the Company acquired 81.00% shareholding of Xinjiang Puhuitai Health Management Co., Ltd. with cash consideration of RMB 30,780,000.00. After the acquisition, the Company gained the right to control. Note 34: On Dec 22, 2016, Yunnan Meinian Onehealth Healthcare Co., Ltd., the subsidiary of the Company and other founders jointly initially established Yuxi Meinian Onehealth Industry Co., Ltd. with 16.00% shareholding. On Dec 1, 2018, Yunnan Meinian Onehealth Healthcare Co., Ltd., the subsidiary of the Company acquired 35.00% shareholding of Yuxi Meinian Onehealth Industry Co., Ltd. with cash consideration of RMB 17,220,000.00. After the acquisition, the Company gained the right to control. Note 35: On Jan 25, 2016, Chengdu Meinian Onehealth Health Management Co., Ltd., the subsidiary of the Company and other founders jointly initially established Gunagyuan Meinian Onehealth Technology Co., Ltd. with 15.00% shareholding. On Dec 31, 2018, Chengdu Meinian Onehealth Health Management Co., Ltd., the subsidiary of the Company acquired 45.00% shareholding of Gunagyuan Meinian Onehealth Technology Co., Ltd. with cash consideration of RMB 17,325,000.00. After the acquisition, the Company gained the right to control. Note 36: On May 25, 2015, Shenyang Meinian Health Technology Health Management Co., Ltd., the subsidiary of the Company and other founders jointly initially established Songyuan Meinian Onehealth & Wellness Management Co., Ltd. with 10.00% shareholding. On Dec 31, 2018, Shenyang Meinian Health Technology Health

147

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Management Co., Ltd.., the subsidiary of the Company acquired 50.00% shareholding of Songyuan Meinian Onehealth & Wellness Management Co., Ltd. with cash consideration of RMB 19,000,000.00. After the acquisition, the Company gained the right to control. Note 37: On Nov 23, 2015, Shanghai Meinian Outpatient Co., Ltd., the subsidiary of the Company and other founders jointly initially established Jiaxing Meinian Onehealth Management Co., Ltd. with 15.00% shareholding. On Dec 31, 2018, Shanghai Meinian Outpatient Co., Ltd., Ltd., the subsidiary of the Company acquired 36.00% shareholding of Jiaxing Meinian Onehealth Management Co., Ltd., Ltd. with cash consideration of RMB 12,600,000.00. After the acquisition, the Company gained the right to control. (2) Combination cost and goodwill Ningbo Yinzhou Guangdong Wuhan Meinian Changchun Yihe Youyi Health Yisheng Health Baiwei Ci Items Comprehensive Management Management Kang Hospital Outpatient Co., Co., Ltd. Co., Ltd. Co., Ltd. Ltd. Combination cost -Cash 7,501,500.00 15,300,000.00 30,000,000.00 56,000,000.00 -Fair value on purchase date of

equity held before purchase date Total combination cost 7,501,500.00 15,300,000.00 30,000,000.00 56,000,000.00 Less: Fair value of identifiable net assets 2,492,264.03 7,760,298.11 14,592,353.64 25,666,507.00 obtained Goodwill 5,009,235.97 7,539,701.89 15,407,646.36 30,333,493.00

(Cont.) Linyi Meigu Bozhou Meinian Wuhan Meinian Health Wenzhou Aoya Onehealth Health Items Checkup Hospital Co., Health Management Management Ltd. Management Co., Ltd. Co., Ltd. Co., Ltd. Combination cost -Cash 13,350,000.00 26,764,000.00 12,250,000.00 12,960,000.00 -Fair value on purchase date of 5,600,000.00 5,400,000.00 equity held before purchase date Total combination cost 13,350,000.00 26,764,000.00 17,850,000.00 18,360,000.00

148

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Linyi Meigu Bozhou Meinian Wuhan Meinian Health Wenzhou Aoya Onehealth Health Items Checkup Hospital Co., Health Management Management Ltd. Management Co., Ltd. Co., Ltd. Co., Ltd. Less: Fair value of identifiable net assets 13,350,000.00 1,981,525.12 5,177,944.71 6,555,954.82 obtained Goodwill 24,782,474.88 12,672,055.29 11,804,045.18

(Cont.) Deyang Suining Xinyang Heze Meinian Meinian Meinian Meinian Onehealth Physical Physical Items Onehealth Examination Examination Examination Management Management Hospital Co., Hospital Co., Co., Ltd. Co., Ltd. Ltd. Ltd. Combination cost -Cash 14,400,000.00 16,200,000.00 20,336,000.00 15,376,000.00 -Fair value on purchase date of equity held 6,000,000.00 6,750,000.00 4,960,000.00 9,920,000.00 before purchase date Total merger costs 20,400,000.00 22,950,000.00 25,296,000.00 25,296,000.00 Less: Fair value of identifiable net assets 6,420,128.74 7,787,841.08 7,921,686.30 6,056,778.26 obtained Goodwill 13,979,871.26 15,162,158.92 17,374,313.70 19,239,221.74

(Cont.) Yueyang Dandong Huludao Xinxiang Meinian Meinian Meinian Meinian Onehealth & Onehealth & Items Onehealth Onehealth Health Health Management Management Management Management Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Combination cost -Cash 20,120,000.00 19,320,000.00 20,400,000.00 23,780,000.00 -Fair value on purchase date of equity held before 6,400,000.00 7,980,000.00 7,600,000.00 5,800,000.00 purchase date Total combination costs 26,520,000.00 27,300,000.00 28,000,000.00 29,580,000.00 Less: Fair value of identifiable net assets 14,321,055.01 7,037,098.15 11,027,641.94 9,961,122.24 obtained Goodwill 12,198,944.99 20,262,901.85 16,972,358.06 19,618,877.76

(Cont.)

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Zhuzhou Dali Meinian Xiangyang Yantai Ciming Meinian Physical Meinian Health Checkup Onehealth & Items Examination Onehealth Management Wellness Hospital Co., Management Co., Ltd. Management Ltd. Co., Ltd. Co., Ltd. Combination cost -Cash 26,240,000.00 25,920,000.00 39,680,000.00 45,240,000.00 -Fair value on purchase date of 4,800,000.00 10,800,000.00 4,960,000.00 5,760,000.00 equity held before purchase date Total combination 31,040,000.00 36,720,000.00 44,640,000.00 51,000,000.00 costs Less: Fair value of identifiable net assets 8,672,865.12 11,567,126.40 18,842,382.22 25,568,510.47 obtained Goodwill 22,367,134.88 25,152,873.60 25,797,617.78 25,431,489.53

(Cont.) Chengdu Jinjiang Xiangtan Foshan Meinian Meinian Zhongshan Meinian Onehealth Onehealth Meinian Onehealth & Items Checkup Weikang Onehealth Health Management Medical Management Management Co., Ltd. Outpatient Co., Ltd. Co., Ltd. Branch Co., Ltd. Combination cost -Cash 49,500,000.00 29,504,000.00 35,520,000.00 30,256,000.00 -Fair value on purchase date of 13,500,000.00 7,200,000.00 17,280,000.00 9,424,000.00 equity held before purchase date Total combination 63,000,000.00 36,704,000.00 52,800,000.00 39,680,000.00 costs Less: Fair value of identifiable net assets 21,620,573.20 16,511,017.86 12,256,539.32 8,449,897.43 obtained Goodwill 41,379,426.80 20,192,982.14 40,543,460.68 31,230,102.57

(Cont.) Puer Meinian Daye Meinian Heyuan Meiyin Beijing Meinian Onehealth Onehealth Onehealth Items Meifu Outpatient Physical Checkup Management Co., Ltd. Examination Management Co., Ltd. Center Co., Ltd. Co., Ltd. Combination cost -Cash 40,176,000.00 25,792,000.00 26,650,000.00 23,400,000.00 -Fair value on 9,424,000.00 7,936,000.00 6,500,000.00 7,200,000.00 purchase date of 150

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Puer Meinian Daye Meinian Heyuan Meiyin Beijing Meinian Onehealth Onehealth Onehealth Items Meifu Outpatient Physical Checkup Management Co., Ltd. Examination Management Co., Ltd. Center Co., Ltd. Co., Ltd. equity held before purchase date Total combination 49,600,000.00 33,728,000.00 33,150,000.00 30,600,000.00 costs Less: Fair value of identifiable net assets 5,389,780.37 13,111,473.03 18,298,753.56 9,581,587.31 obtained Goodwill 44,210,219.63 20,616,526.97 14,851,246.44 21,018,412.69

(Cont.) Kaifeng Meinian Jinzhong Meinian Ezhou Meinian Onehealth Onehealth Items Onehealth Examination Management Co., Management Co., Ltd. Management Co., Ltd. Ltd. Combination cost -Cash 14,940,000.00 3,855,600.00 13,068,000.00 -Fair value on purchase date of 6,225,000.00 5,508,000.00 7,128,000.00 equity held before purchase date Total combination 21,165,000.00 9,363,600.00 20,196,000.00 costs Less: Fair value of identifiable net assets 9,751,011.93 6,877,024.17 8,488,832.80 obtained Goodwill 11,413,988.07 2,486,575.83 11,707,167.20

(Cont.) Handan Meinian Xinjiang Puhuiantai Yuxi Meinian Items Onehealth Health Management Onehealth Industry Management Co., Ltd. Co., Ltd. Co., Ltd. Combination cost -Cash 15,645,000.00 30,780,000.00 17,220,000.00 -Fair value on purchase date of 7,152,000.00 7,220,000.00 7,872,000.00 equity held before purchase date Total combination 22,797,000.00 38,000,000.00 25,092,000.00 costs Less: Fair value of identifiable net assets 10,171,762.07 12,314,870.73 7,686,579.73 obtained Goodwill 12,625,237.93 25,685,129.27 17,405,420.27

(Cont.)

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Jiaxing Meinian Gunagyuan Meinian Songyuan Meinian Onehealth Items Onehealth Technology Onehealth & Wellness Management Co., Co., Ltd. Management Co., Ltd. Ltd. Combination cost -Cash 17,325,000.00 19,000,000.00 12,600,000.00 -Fair value on purchase date of 5,775,000.00 3,800,000.00 5,250,000.00 equity held before purchase date Total combination 23,100,000.00 22,800,000.00 17,850,000.00 costs Less: Fair value of identifiable net assets 9,850,204.06 10,506,273.82 6,239,622.06 obtained Goodwill 13,249,795.94 12,293,726.18 11,610,377.94

Note 1: 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 Guangdong Youyi Health Ningbo Yinzhou Yihe Management Co., Ltd. Comprehensive Outpatient Items Co., Ltd. Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets: Currency funds 731,886.02 731,886.02 138,680.30 138,680.30 Trading financial assets Accounts receivable 0.15 0.15 359,744.57 359,744.57 Prepayments 77,500.00 77,500.00 Other receivables 7,808,091.52 7,808,091.52 405,525.00 405,525.00 Inventories 7,433.75 7,433.75 55,800.73 55,800.73 Available-for-sale financial

assets Long-term equity

investments Long-term receivables 1,013,545.27 1,013,545.27 Fixed assets 3,688,231.97 3,688,231.97 12,305,507.40 12,305,507.40 Construction in progress 75,000.00 75,000.00 Intangible assets Long-term deferred 1,083,511.97 1,083,511.97 3,084,458.67 3,084,458.67 expenses

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Guangdong Youyi Health Ningbo Yinzhou Yihe Management Co., Ltd. Comprehensive Outpatient Items Co., Ltd. Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Other assets 719,388.28 719,388.28 Liabilities: Loan 3,157,500.00 3,157,500.00 Accounts payable 478,479.36 478,479.36 739,604.86 739,604.86 Advances from customers 6,844.00 6,844.00 Employee benefits 10,233.42 10,233.42 469,826.00 469,826.00 payable Taxes payable 512.77 512.77 Other payables 5,121,542.31 5,121,542.31 1,515.00 1,515.00 Non-current liabilities due 304,974.53 304,974.53 within one year Long-term payables 1,063,471.19 1,063,471.19 Other liabilities Net assets 4,983,531.35 4,983,531.35 15,216,270.81 15,216,270.81 Less: Non-controlling 2,491,267.32 7,455,972.70 Interests Net assets obtained 2,492,264.03 7,760,298.11

(Cont.) Wuhan Meinian Yisheng Health Changchun Baiwei CiKang Management Co., Ltd. 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 475,169.40 475,169.40 878,700.56 878,700.56 Trading financial assets Accounts receivable 105,273.00 105,273.00 5,497,611.53 5,497,611.53 Prepayments 39,340.00 39,340.00 Other receivables 9,736,200.00 9,736,200.00 5,152,509.66 5,152,509.66 Inventories 202,826.27 202,826.27 323,503.08 323,503.08 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 10,316,831.04 10,316,831.04 12,353,456.52 12,353,456.52 Construction in progress

153

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Wuhan Meinian Yisheng Health Changchun Baiwei CiKang Management Co., Ltd. Hospital Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Intangible assets Long-term deferred 4,845,452.70 4,845,452.70 21,083,681.95 21,083,681.95 expenses Other assets 158,979.97 158,979.97 Liabilities: Loan Accounts payable 3,309,105.06 3,309,105.06 9,794,924.30 9,794,924.30 Advances from customers 15,466.00 15,466.00 2,299,027.96 2,299,027.96 Employee benefits 553,648.49 553,648.49 981,450.66 981,450.66 payable Taxes payable 10,414.00 10,414.00 7,417.03 7,417.03 Other payables 7,359,745.19 7,359,745.19 162,849.60 162,849.60 Non-current liabilities due within one year Long-term payables Other liabilities Net assets 14,592,353.64 14,592,353.64 32,083,133.75 32,083,133.75 Less: Non-controlling 6,416,626.75 Interests Net assets obtained 14,592,353.64 25,666,507.00

(Cont.) Linyi Meigu Health Checkup Wenzhou Aoya Hospital Co., Management Co., Ltd. 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 403,909.96 403,909.96 5,072,882.82 5,072,882.82 Trading financial assets Accounts receivable 800,000.00 800,000.00 2,230,114.39 2,230,114.39 Prepayments 63,611.71 63,611.71 Other receivables 5,082,054.01 5,082,054.01 269,000.00 269,000.00 Inventories 157,732.71 157,732.71 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 11,114,949.99 11,114,949.99 4,407,543.32 4,407,543.32 154

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Linyi Meigu Health Checkup Wenzhou Aoya Hospital Co., Management Co., Ltd. Ltd. Item Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Construction in progress Intangible assets 4,249.94 4,249.94 92,141.64 92,141.64 Long-term deferred 1,042,233.70 1,042,233.70 104,861.00 104,861.00 expenses Other assets Liabilities: Loan Accounts payable 2,720,199.35 2,720,199.35 Advances from customers 642,866.00 642,866.00 Employee benefits 1,577,209.34 1,577,209.34 payable Taxes payable 26,213.60 26,213.60 13,413.95 13,413.95 Other payables 123,943.00 123,943.00 5,027,704.90 5,027,704.90 Non-current liabilities due 2,664,261.00 2,664,261.00 within one year Long-term payables 2,282,980.00 2,282,980.00 Other liabilities Net assets 13,350,000.00 13,350,000.00 2,416,494.05 2,416,494.05 Less: Non-controlling 434,968.93 Interests Net assets obtained 13,350,000.00 1,981,525.12

(Cont.) Wuhan Meinian Health Bozhou Meinian Onehealth Management Co., Ltd. Health 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 2,068,776.17 2,068,776.17 8,810,279.44 8,810,279.44 Trading financial assets Accounts receivable 4,615,477.56 4,615,477.56 2,849,391.83 2,849,391.83 Prepayments 78,503.52 78,503.52 185,981.02 185,981.02 Other receivables 222,100.00 222,100.00 17,535.06 17,535.06 Inventories 667,327.13 667,327.13 268,762.05 268,762.05 Available-for-sale financial assets Long-term equity investments Long-term receivables 155

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Wuhan Meinian Health Bozhou Meinian Onehealth Management Co., Ltd. Health Management Co., Ltd. Items Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Fixed assets 8,181,002.79 8,181,002.79 10,129,037.07 10,129,037.07 Construction in progress Intangible assets 184,999.97 184,999.97 168,018.27 168,018.27 Long-term deferred 4,608,293.71 4,608,293.71 1,809,978.59 1,809,978.59 expenses Other assets 5,055.68 5,055.68 Liabilities: Loan Accounts payable 1,779,843.58 1,779,843.58 1,821,956.09 1,821,956.09 Advances from customers 1,428,213.81 1,428,213.81 3,732,839.27 3,732,839.27 Employee benefits 918,813.33 918,813.33 1,212,767.09 1,212,767.09 payable Taxes payable 2,481.56 2,481.56 79,480.56 79,480.56 Other payables 1,678,362.81 1,678,362.81 34,781.99 34,781.99 Non-current liabilities due 1,441,867.00 1,441,867.00 1,608,074.00 1,608,074.00 within one year Long-term payables 3,224,066.00 3,224,066.00 2,899,326.64 2,899,326.64 Other liabilities Net assets 10,152,832.76 10,152,832.76 12,854,813.37 12,854,813.37 Less: Non-controlling 4,974,888.05 6,298,858.55 Interests Net assets obtained 5,177,944.71 6,555,954.82

(Cont.) Deyang Meinian Physical Suining Meinian Physical Examination Hospital 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 4,795,458.94 4,795,458.94 4,185,801.16 4,185,801.16 Trading financial assets Accounts receivable 4,063,523.99 4,063,523.99 6,626,618.84 6,626,618.84 Prepayments 235,361.35 235,361.35 170,022.33 170,022.33 Other receivables 1,168,658.22 1,168,658.22 2,653,024.11 2,653,024.11 Inventories 669,642.94 669,642.94 424,576.01 424,576.01 Available-for-sale financial assets Long-term equity investments 156

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Deyang Meinian Physical Suining Meinian Physical Examination Hospital 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 Long-term receivables Fixed assets 11,304,409.02 11,304,409.02 10,936,809.54 10,936,809.54 Construction in progress Intangible assets 174,074.94 174,074.94 182,524.85 182,524.85 Long-term deferred 2,373,391.27 2,373,391.27 2,534,949.87 2,534,949.87 expenses Other assets 4,629.30 4,629.30 Liabilities: Loan Accounts payable 1,733,435.83 1,733,435.83 466,767.41 466,767.41 Advances from customers 1,617,675.49 1,617,675.49 3,407,789.15 3,407,789.15 Employee benefits 1,488,840.48 1,488,840.48 2,326,491.38 2,326,491.38 payable Taxes payable 159,276.00 159,276.00 166,406.46 166,406.46 Other payables 1,744,737.78 1,744,737.78 1,187,041.56 1,187,041.56 Non-current liabilities due within one year Long-term payables 5,456,696.66 5,456,696.66 4,889,554.13 4,889,554.13 Other liabilities Net assets 12,588,487.73 12,588,487.73 15,270,276.62 15,270,276.62 Less: Non-controlling 6,168,358.99 7,482,435.54 Interests Net assets obtained 6,420,128.74 7,787,841.08

(Cont.) Heze Meinian Onehealth Xinyang Meinian Onehealth Physical Examination Management Co., Ltd. Items Management Co., Ltd. Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets: Currency funds 3,628,515.24 3,628,515.24 1,571,055.75 1,571,055.75 Trading financial assets Accounts receivable 8,993,635.31 8,993,635.31 5,224,160.92 5,224,160.92 Prepayments 5,475,145.50 5,475,145.50 1,480,360.52 1,480,360.52 Other receivables 3,106,292.24 3,106,292.24 1,536,129.75 1,536,129.75 Inventories 357,218.11 357,218.11 569,753.37 569,753.37

157

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Heze Meinian Onehealth Xinyang Meinian Onehealth Physical Examination Management Co., Ltd. Items Management Co., Ltd. Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 6,486,917.71 6,486,917.71 6,912,564.56 6,912,564.56 Construction in progress Intangible assets 154,999.91 154,999.91 153,333.33 153,333.33 Long-term deferred 1,017,333.00 1,017,333.00 3,065,745.29 3,065,745.29 expenses Other assets 119,422.32 119,422.32 700,692.63 700,692.63 Liabilities: Loan Accounts payable 856,871.63 856,871.63 1,814,468.30 1,814,468.30 Advances from customers 6,940,019.48 6,940,019.48 3,845,733.21 3,845,733.21 Employee benefits 2,286,466.08 2,286,466.08 2,484,919.43 2,484,919.43 payable Taxes payable 77,849.71 77,849.71 53,631.77 53,631.77 Other payables 3,645,554.20 3,645,554.20 253,230.18 253,230.18 Non-current liabilities due 787,253.00 787,253.00 within one year Long-term payables 98,796.00 98,796.00 Other liabilities Net assets 15,532,718.24 15,532,718.24 11,875,764.23 11,875,764.23 Less: Non-controlling 7,611,031.94 5,818,985.97 Interests Net assets obtained 7,921,686.30 6,056,778.26

(Cont.) Yueyang Meinian Onehealth & Huludao Meinian Onehealth 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 4,596,887.42 4,596,887.42 1,976,873.30 1,976,873.30 Trading financial assets Accounts receivable 6,487,136.25 6,487,136.25 3,289,567.70 3,289,567.70 Prepayments 220,434.26 220,434.26 633,455.70 633,455.70

158

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Yueyang Meinian Onehealth & Huludao Meinian Onehealth 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 Other receivables 12,413,089.20 12,413,089.20 170,984.19 170,984.19 Inventories 244,870.72 244,870.72 295,780.05 295,780.05 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 9,819,556.13 9,819,556.13 7,476,648.60 7,476,648.60 Construction in progress Intangible assets 170,000.01 170,000.01 222,333.00 222,333.00 Long-term deferred 3,630,891.60 3,630,891.60 1,618,565.17 1,618,565.17 expenses Other assets 18,585.60 18,585.60 200,000.00 200,000.00 Liabilities: Loan Accounts payable 1,211,247.26 1,211,247.26 795,131.85 795,131.85 Advances from customers 1,811,319.94 1,811,319.94 435,636.50 435,636.50 Employee benefits 2,241,912.62 2,241,912.62 1,296,591.00 1,296,591.00 payable Taxes payable 52,491.23 52,491.23 242,278.64 242,278.64 Other payables 162,480.13 162,480.13 2,288,264.87 2,288,264.87 Non-current liabilities due 1,923,348.00 1,923,348.00 within one year Long-term payables 2,118,151.99 2,118,151.99 Other liabilities Net assets 28,080,500.02 28,080,500.02 10,826,304.85 10,826,304.85 Less: Non-controlling 13,759,445.01 3,789,206.70 Interests Net assets obtained 14,321,055.01 7,037,098.15

(Cont.) Dandong Meinian Onehealth & Xinxiang Meinian Onehealth 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 2,237,934.84 2,237,934.84 4,058,490.99 4,058,490.99 Trading financial assets Accounts receivable 2,997,609.83 2,997,609.83 10,187,670.56 10,187,670.56 159

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Dandong Meinian Onehealth & Xinxiang Meinian Onehealth 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 Prepayments 198,825.43 198,825.43 820,666.20 820,666.20 Other receivables 285,537.61 285,537.61 2,105,942.26 2,105,942.26 Inventories 260,705.82 260,705.82 592,232.72 592,232.72 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 13,703,739.05 13,703,739.05 12,030,738.58 12,030,738.58 Construction in progress Intangible assets 171,200.02 171,200.02 132,916.67 132,916.67 Long-term deferred 8,773,592.53 8,773,592.53 5,869,525.28 5,869,525.28 expenses Other assets 535,492.15 535,492.15 160,436.42 160,436.42 Liabilities: Loan Accounts payable 2,225,895.46 2,225,895.46 1,705,491.19 1,705,491.19 Advances from customers 1,323,766.46 1,323,766.46 6,301,687.41 6,301,687.41 Employee benefits 564,813.70 564,813.70 838,086.46 838,086.46 payable Taxes payable 635,246.79 635,246.79 3,550,608.27 3,550,608.27 Other payables 4,584,559.07 4,584,559.07 1,762,531.11 1,762,531.11 Non-current liabilities due 732,338.00 732,338.00 within one year Long-term payables 4,076,581.60 4,076,581.60 1,536,265.00 1,536,265.00 Other liabilities Net assets 15,753,774.20 15,753,774.20 19,531,612.24 19,531,612.24 Less: Non-controlling 4,726,132.26 9,570,490.00 Interests Net assets obtained 11,027,641.94 9,961,122.24

(Cont.) Yantai Ciming Health Checkup Dali Meinian Physical Management 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 208,962.16 208,962.16 9,718,044.59 9,718,044.59 Trading financial assets 160

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Yantai Ciming Health Checkup Dali Meinian Physical Management 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 Accounts receivable 2,745,830.48 2,745,830.48 3,809,815.05 3,809,815.05 Prepayments 15,303.75 15,303.75 730,156.68 730,156.68 Other receivables 1,081,025.58 1,081,025.58 287,185.61 287,185.61 Inventories 182,261.07 182,261.07 580,886.05 580,886.05 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 6,154,374.94 6,154,374.94 13,397,620.25 13,397,620.25 Construction in progress Intangible assets 173,333.30 173,333.30 217,999.99 217,999.99 Long-term deferred 2,375,926.43 2,375,926.43 3,741,588.27 3,741,588.27 expenses Other assets 170,181.67 170,181.67 Liabilities: Loan Accounts payable 681,658.34 681,658.34 1,424,951.72 1,424,951.72 Advances from customers 444,705.99 444,705.99 2,160,320.48 2,160,320.48 Employee benefits 355,851.11 355,851.11 1,822,446.66 1,822,446.66 payable Taxes payable 8,152.52 8,152.52 44,782.37 44,782.37 Other payables 328,460.69 328,460.69 178,679.94 178,679.94 Non-current liabilities due 1,027,789.00 1,027,789.00 2,193,253.00 2,193,253.00 within one year Long-term payables 1,149,302.00 1,149,302.00 2,148,404.00 2,148,404.00 Other liabilities Net assets 8,941,098.06 8,941,098.06 22,680,639.99 22,680,639.99 Less: Non-controlling 268,232.94 11,113,513.59 Interests Net assets obtained 8,672,865.12 11,567,126.40

(Cont.) Zhuzhou Meinian Onehealth & Xiangyang Meinian Onehealth Wellness Management Co., Management Co., Ltd. Items Ltd. Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets:

161

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Zhuzhou Meinian Onehealth & Xiangyang Meinian Onehealth Wellness Management Co., Management Co., Ltd. Items Ltd. Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Currency funds 1,881,682.02 1,881,682.02 2,818,237.12 2,818,237.12 Trading financial assets Accounts receivable 3,975,364.29 3,975,364.29 2,103,068.13 2,103,068.13 Prepayments 368,818.22 368,818.22 3,813,617.60 3,813,617.60 Other receivables 12,645,276.00 12,645,276.00 19,692,168.56 19,692,168.56 Inventories 272,997.52 272,997.52 633,086.74 633,086.74 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 7,359,793.07 7,359,793.07 10,690,484.78 10,690,484.78 Construction in progress 1,396,363.00 1,396,363.00 Intangible assets 163,843.16 163,843.16 181,666.63 181,666.63 Long-term deferred 2,149,192.81 2,149,192.81 6,358,124.45 6,358,124.45 expenses Other assets 2,580,466.59 2,580,466.59 242,398.02 242,398.02 Liabilities: Loan Accounts payable 1,674,882.95 1,674,882.95 5,362,161.69 5,362,161.69 Advances from 2,292,532.11 2,292,532.11 1,846,724.50 1,846,724.50 customers Employee benefits 987,062.66 987,062.66 1,295,886.66 1,295,886.66 payable Taxes payable Other payables 272,980.66 272,980.66 8,061,563.71 8,061,563.71 Non-current liabilities due 2,074,372.00 2,074,372.00 within one year Long-term payables 3,719,996.00 3,719,996.00 Other liabilities Net assets 26,169,975.30 26,169,975.30 25,568,510.47 25,568,510.47 Less: Non-controlling 7,327,593.08 Interests Net assets obtained 18,842,382.22 25,568,510.47

(Cont.)

162

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Foshan Meinian Onehealth Xiangtan Meinian Onehealth & Checkup Management Co., Ltd. Health 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 14,312,847.09 14,312,847.09 5,460,011.84 5,460,011.84 Trading financial assets Accounts receivable 4,567,959.95 4,567,959.95 2,060,695.96 2,060,695.96 Prepayments 15,920.00 15,920.00 210,089.82 210,089.82 Other receivables 10,336,185.06 10,336,185.06 915,566.96 915,566.96 Inventories 723,061.93 723,061.93 287,270.92 287,270.92 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 18,526,196.16 18,526,196.16 17,703,617.53 17,703,617.53 Construction in progress 132,492.00 132,492.00 Intangible assets 454,997.18 454,997.18 360,331.00 360,331.00 Long-term deferred 8,835,423.38 8,835,423.38 9,587,137.45 9,587,137.45 expenses Other assets 1,056,596.25 1,056,596.25 Liabilities: Loan Accounts payable 3,161,850.95 3,161,850.95 2,466,874.99 2,466,874.99 Advances from customers 3,798,170.08 3,798,170.08 1,569,012.85 1,569,012.85 Employee benefits 6,427,461.42 6,427,461.42 2,225,554.04 2,225,554.04 payable Taxes payable 1,317,775.35 1,317,775.35 9,938.32 9,938.32 Other payables 4,489,058.06 4,489,058.06 5,021,644.65 5,021,644.65 Non-current liabilities due 3,360,184.00 3,360,184.00 2,578,885.00 2,578,885.00 within one year Long-term payables 5,520,646.00 5,520,646.00 4,719,113.00 4,719,113.00 Other liabilities Net assets 30,886,533.14 30,886,533.14 17,993,698.63 17,993,698.63 Less: Non-controlling 9,265,959.94 1,482,680.77 Interests Net assets obtained 21,620,573.20 16,511,017.86

(Cont.)

163

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Chengdu Jinjiang Meinian Zhongshan Meinian Onehealth Onehealth Weikang Medical Management Co., Ltd. Items Outpatient Branch Co., Ltd. Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets: Currency funds 16,470,913.77 16,470,913.77 8,917,663.84 8,917,663.84 Trading financial assets Accounts receivable 41,082,928.52 41,082,928.52 7,053,072.91 7,053,072.91 Prepayments 398,672.52 398,672.52 452,253.76 452,253.76 Other receivables 3,887,494.07 3,887,494.07 1,074,266.65 1,074,266.65 Inventories 742,859.50 742,859.50 396,748.26 396,748.26 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 38,432,256.22 38,432,256.22 11,017,836.87 11,017,836.87 Construction in progress Intangible assets 127,400.00 127,400.00 166,666.60 166,666.60 Long-term deferred 13,826,792.96 13,826,792.96 3,736,466.61 3,736,466.61 expenses Other assets 314,240.00 314,240.00 Liabilities: Loan Accounts payable 53,134,429.47 53,134,429.47 3,718,592.27 3,718,592.27 Advances from customers 4,467,669.10 4,467,669.10 5,180,374.49 5,180,374.49 Employee benefits 3,510,588.65 3,510,588.65 2,059,302.52 2,059,302.52 payable Taxes payable 379,628.07 379,628.07 113,251.53 113,251.53 Other payables 17,525,457.33 17,525,457.33 7,035,523.58 7,035,523.58 Non-current liabilities due 5,255,481.00 5,255,481.00 1,722,348.00 1,722,348.00 within one year Long-term payables 8,725,687.00 8,725,687.00 2,423,211.32 2,423,211.32 Other liabilities Net assets 22,284,616.94 22,284,616.94 10,562,371.79 10,562,371.79 Less: Non-controlling 10,028,077.62 2,112,474.36 Interests Net assets obtained 12,256,539.32 8,449,897.43

(Cont.)

164

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Puer Meinian Onehealth Beijing Meinian Meifu Outpatient Physical Examination Center Co., Ltd. Items Co., Ltd. Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets: Currency funds 1,814,665.03 1,814,665.03 7,922,199.82 7,922,199.82 Trading financial assets Accounts receivable 1,125,257.30 1,125,257.30 9,326,162.86 9,326,162.86 Prepayments 60,184.00 60,184.00 43,846.00 43,846.00 Other receivables 768,863.00 768,863.00 145,998.00 145,998.00 Inventories 95,580.64 95,580.64 639,208.28 639,208.28 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 19,981,090.53 19,981,090.53 10,732,561.73 10,732,561.73 Construction in progress 25,500.00 25,500.00 Intangible assets 1,855,416.66 1,855,416.66 211,415.93 211,415.93 Long-term deferred 12,765,851.02 12,765,851.02 3,453,017.80 3,453,017.80 expenses Other assets 189,902.53 189,902.53 Liabilities: Loan Accounts payable 1,511,096.95 1,511,096.95 2,331,438.57 2,331,438.57 Advances from customers 567,149.00 567,149.00 2,495,255.37 2,495,255.37 Employee benefits 542,724.77 542,724.77 3,647,583.18 3,647,583.18 payable Taxes payable 56,331.43 56,331.43 483,313.79 483,313.79 Other payables 15,901,368.66 15,901,368.66 910,251.05 910,251.05 Non-current liabilities due 4,976,596.00 4,976,596.00 2,128,226.00 2,128,226.00 within one year Long-term payables 9,547,361.00 9,547,361.00 1,386,667.00 1,386,667.00 Other liabilities Net assets 5,389,780.37 5,389,780.37 19,281,577.99 19,281,577.99 Less: Non-controlling 6,170,104.96 Interests Net assets obtained 5,389,780.37 13,111,473.03

(Cont.)

165

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Daye Meinian Onehealth Checkup Heyuan Meiyin 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 17,726,096.38 17,726,096.38 6,070,309.96 6,070,309.96 Trading financial assets Accounts receivable 10,207,467.47 10,207,467.47 4,275,572.58 4,275,572.58 Prepayments 799,577.76 799,577.76 30,699.53 30,699.53 Other receivables 1,300,633.94 1,300,633.94 351,025.00 351,025.00 Inventories 732,302.96 732,302.96 373,773.47 373,773.47 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 13,473,732.61 13,473,732.61 10,316,455.38 10,316,455.38 Construction in progress Intangible assets 308,319.62 308,319.62 181,583.45 181,583.45 Long-term deferred 5,523,061.65 5,523,061.65 4,049,688.77 4,049,688.77 expenses Other assets 316,299.35 316,299.35 35,902.56 35,902.56 Liabilities: Loan Accounts payable 4,115,615.80 4,115,615.80 1,429,077.86 1,429,077.86 Advances from customers 4,864,323.50 4,864,323.50 1,754,991.04 1,754,991.04 Employee benefits 1,738,879.28 1,738,879.28 2,776,399.91 2,776,399.91 payable Taxes payable 304,103.14 304,103.14 67,097.10 67,097.10 Other payables 69,790.07 69,790.07 741,847.22 741,847.22 Non-current liabilities due 1,405,798.00 1,405,798.00 1,631,514.00 1,631,514.00 within one year Long-term payables 2,009,073.00 2,009,073.00 3,193,514.00 3,193,514.00 Other liabilities Net assets 35,879,908.95 35,879,908.95 14,090,569.57 14,090,569.57 Less: Non-controlling 17,581,155.39 4,508,982.26 Interests Net assets obtained 18,298,753.56 9,581,587.31

(Cont.)

166

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Kaifeng Meinian Onehealth Ezhou Meinian Onehealth Examination Management Co., Management Co., Ltd. Item Ltd. Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets: Currency funds 9,521,020.62 9,521,020.62 1,718,709.87 1,718,709.87 Trading financial assets Accounts receivable 6,943,535.94 6,943,535.94 9,276,197.19 9,276,197.19 Prepayments 2,385,332.78 2,385,332.78 92,862.49 92,862.49 Other receivables 1,500,375.91 1,500,375.91 271,464.23 271,464.23 Inventories 257,093.41 257,093.41 452,568.45 452,568.45 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 8,538,049.91 8,538,049.91 9,201,898.42 9,201,898.42 Construction in progress 106,060.86 106,060.86 Intangible assets 211,058.27 211,058.27 177,408.63 177,408.63 Long-term deferred 2,812,670.08 2,812,670.08 3,093,513.69 3,093,513.69 expenses Other assets 31,200.00 31,200.00 4,310.40 4,310.40 Liabilities: Loan Accounts payable 1,748,238.53 1,748,238.53 4,175,191.36 4,175,191.36 Advances from customers 3,096,901.08 3,096,901.08 2,129,297.59 2,129,297.59 Employee benefits 4,135,766.70 4,135,766.70 1,335,271.14 1,335,271.14 payable Taxes payable 610,864.69 610,864.69 480,442.99 480,442.99 Other payables 405,073.54 405,073.54 86,532.17 86,532.17 Non-current liabilities due 1,712,657.00 1,712,657.00 1,274,724.00 1,274,724.00 within one year Long-term payables 1,477,265.00 1,477,265.00 1,323,113.00 1,323,113.00 Other liabilities Net assets 19,119,631.24 19,119,631.24 13,484,361.12 13,484,361.12 Less: Non-controlling 9,368,619.31 6,607,336.95 Interests Net assets obtained 9,751,011.93 6,877,024.17

(Cont.)

167

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Handan City Meinian JinzhongMeinianOnehealth Onehealth Management Co., Management Co., Ltd. Item Ltd. Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets: Currency funds 5,502,688.18 5,502,688.18 6,451,975.41 6,451,975.41 Trading financial assets Accounts receivable 5,307,227.00 5,307,227.00 7,008,887.47 7,008,887.47 Prepayments 169,018.90 169,018.90 119,644.00 119,644.00 Other receivables 82,239.10 82,239.10 1,980,436.86 1,980,436.86 Inventories 431,571.02 431,571.02 408,250.58 408,250.58 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 8,546,762.90 8,546,762.90 11,526,465.02 11,526,465.02 Construction in progress Intangible assets 312,750.03 312,750.03 171,333.54 171,333.54 Long-term deferred 3,703,310.20 3,703,310.20 4,218,232.48 4,218,232.48 expenses Other assets 819,843.20 819,843.20 8,064.23 8,064.23 Liabilities: Loan Accounts payable 3,708,217.87 3,708,217.87 4,177,586.46 4,177,586.46 Advances from customers 2,043,482.41 2,043,482.41 1,529,714.75 1,529,714.75 Employee benefits 2,091,009.09 2,091,009.09 2,069,308.30 2,069,308.30 payable Taxes payable 214,002.07 214,002.07 589,393.20 589,393.20 Other payables 173,928.90 173,928.90 161,687.77 161,687.77 Non-current liabilities due 1,598,251.00 1,598,251.00 within one year Long-term payables 1,822,716.60 1,822,716.60 Other liabilities Net assets 16,644,770.19 16,644,770.19 19,944,631.51 19,944,631.51 Less: Non-controlling 8,155,937.39 9,772,869.44 Interests Net assets obtained 8,488,832.80 10,171,762.07

(Cont.)

168

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Xinjiang Puhuitai Health Yuxi Meinian Onehealth Management Co., Ltd Industry 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 533,621.05 533,621.05 5,208,109.70 5,208,109.70 Trading financial assets Accounts receivable 5,323,666.28 5,323,666.28 5,926,667.24 5,926,667.24 Prepayments 168,210.25 168,210.25 438,135.72 438,135.72 Other receivables 12,000.00 12,000.00 525,161.30 525,161.30 Inventories 416,342.90 416,342.90 803,998.20 803,998.20 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 9,196,648.86 9,196,648.86 13,698,642.48 13,698,642.48 Construction in progress 21,500.00 21,500.00 Intangible assets 203,999.93 203,999.93 238,596.00 238,596.00 Long-term deferred 5,345,997.38 5,345,997.38 7,367,726.58 7,367,726.58 expenses Other assets 1,185,439.96 1,185,439.96 110,596.44 110,596.44 Liabilities: Loan 2,000,000.00 2,000,000.00 Accounts payable 1,877,328.00 1,877,328.00 1,957,811.39 1,957,811.39 Advances from customers 2,165,333.67 2,165,333.67 2,488,642.19 2,488,642.19 Employee benefits 2,255,962.09 2,255,962.09 3,980,202.54 3,980,202.54 payable Taxes payable 20,223.87 20,223.87 441,530.53 441,530.53 Other payables 1,658,708.25 1,658,708.25 2,676,244.04 2,676,244.04 Non-current liabilities due 1,385,027.00 1,385,027.00 2,201,129.00 2,201,129.00 within one year Long-term payables 708,473.00 708,473.00 3,521,849.00 3,521,849.00 Other liabilities Net assets 12,314,870.73 12,314,870.73 15,071,724.97 15,071,724.97 Less: Non-controlling 7,385,145.24 Interests Net assets obtained 12,314,870.73 7,686,579.73

(Cont.)

169

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Songyuan Meinian Onehealth Gunagyuan Meinian Onehealth & Wellness Management Co., Technology Co., Ltd Item Ltd Fair value on Book value on Fair value on Book value on purchase date purchase date purchase date purchase date Assets: Currency funds 5,342,525.00 5,342,525.00 3,462,723.15 3,462,723.15 Trading financial assets Accounts receivable 5,220,001.37 5,220,001.37 4,673,206.39 4,673,206.39 Prepayments 231,068.59 231,068.59 158,547.70 158,547.70 Other receivables 1,241,417.35 1,241,417.35 164,462.12 164,462.12 Inventories 719,835.47 719,835.47 222,869.81 222,869.81 Available-for-sale financial assets Long-term equity investments Long-term receivables Fixed assets 11,533,801.15 11,533,801.15 12,550,979.84 12,550,979.84 Construction in progress Intangible assets 227,735.05 227,735.05 199,268.33 199,268.33 Long-term deferred 3,872,414.34 3,872,414.34 3,786,674.64 3,786,674.64 expenses Other assets 125,458.55 125,458.55 185,460.53 185,460.53 Liabilities: Loan Accounts payable 2,354,766.04 2,354,766.04 667,797.79 667,797.79 Advances from customers 3,209,393.74 3,209,393.74 1,396,810.50 1,396,810.50 Employee benefits 2,190,537.33 2,190,537.33 739,580.45 739,580.45 payable Taxes payable 217,139.81 217,139.81 751,804.79 751,804.79 Other payables 679,173.18 679,173.18 154,832.62 154,832.62 Non-current liabilities due 1,472,556.00 1,472,556.00 2,275,929.00 2,275,929.00 within one year Long-term payables 1,973,684.00 1,973,684.00 1,906,981.00 1,906,981.00 Other liabilities Net assets 16,417,006.77 16,417,006.77 17,510,456.36 17,510,456.36 Less: Non-controlling 6,566,802.71 7,004,182.54 Interests Net assets obtained 9,850,204.06 10,506,273.82

(Cont.)

170

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Jiaxing Meinian Onehealth Management Co., Ltd. Item Fair value on purchase date Book value on purchase date Assets: Currency funds 4,847,046.44 4,847,046.44 Trading financial assets Accounts receivable 7,077,485.57 7,077,485.57 Prepayments 46,183.24 46,183.24 Other receivables 1,191,331.05 1,191,331.05 Inventories 474,898.05 474,898.05 Available-for-sale

financial assets Long-term equity

investments Long-term receivables Fixed assets 9,718,357.68 9,718,357.68 Construction in progress Intangible assets 169,333.52 169,333.52 Long-term deferred 2,616,101.53 2,616,101.53 expenses Other assets 170,596.20 170,596.20 Liabilities: Loan 4,500,000.00 4,500,000.00 Accounts payable 2,476,117.63 2,476,117.63 Advances from 3,199,326.89 3,199,326.89 customers Employee benefits 828,639.91 828,639.91 payable Taxes payable 474,512.74 474,512.74 Other payables 698,829.06 698,829.06 Non-current liabilities due 973,917.00 973,917.00 within one year Long-term payables 925,437.00 925,437.00 Other liabilities Net assets 12,234,553.05 12,234,553.05 Less: Non-controlling 5,994,930.99 Interests Net assets obtained 6,239,622.06

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

171

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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 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 Book value on Amount of OCI Gains or loss the purchase Fair value on related to equity from re- date of the purchase date of held originally measurement of Name of acquiree original held originally held before purchase equity originally equity prior to share before date transferred held before the purchase purchase date to investment purchase date date income Wuhan Meinian Health Management Co., 1,920,000.00 5,600,000.00 3,680,000.00 Ltd. Bozhou Meinian Onehealth Health 1,800,000.00 5,400,000.00 3,600,000.00 Management Co., Ltd. Deyang Meinian Physical Examination 1,500,000.00 6,000,000.00 4,500,000.00 Hospital Co., Ltd. Suining Meinian Physical Examination 1,800,000.00 6,750,000.00 4,950,000.00 Hospital Co., Ltd. Xinyang Meinian Onehealth Management 1,000,000.00 4,960,000.00 3,960,000.00 Co., Ltd. Heze Meinian Onehealth Examination 2,797,842.33 9,920,000.00 7,122,157.67 Management Co., Ltd. Yueyang Meinian Onehealth & Health 1,920,000.00 6,400,000.00 4,480,000.00 Management Co., Ltd. Huludao Meinian Onehealth Management 3,800,000.00 7,980,000.00 4,180,000.00 Co., Ltd. Dandong Meinian Onehealth & Health 2,280,000.00 7,600,000.00 5,320,000.00 Management Co., Ltd. Xinxiang Meinian Onehealth Management 650,000.00 5,800,000.00 5,150,000.00 Co., Ltd. Yantai Ciming Health Checkup 1,500,000.00 4,800,000.00 3,300,000.00 Management Co., Ltd. Dali Meinian Physical Examination 2,250,000.00 10,800,000.00 8,550,000.00 Hospital Co., Ltd. Xiangyang Meinian Onehealth 1,200,000.00 4,960,000.00 3,760,000.00 Management Co., Ltd. Zhuzhou Meinian Onehealth & Wellness 1,920,000.00 5,760,000.00 3,840,000.00 Management Co., Ltd. Foshan Meinian Onehealth Checkup 4,050,000.00 13,500,000.00 9,450,000.00 Management Co., Ltd. Xiangtan Meinian Onehealth & Health 3,600,000.00 7,200,000.00 3,600,000.00 Management Co., Ltd. Chengdu Jinjiang Meinian Onehealth Weikang Medical Outpatient Branch Co., 13,300,000.00 17,280,000.00 3,980,000.00 Ltd. Zhongshan Meinian Onehealth 2,280,000.00 9,424,000.00 7,144,000.00 Management Co., Ltd.

172

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Book value on Amount of OCI Gains or loss the purchase Fair value on related to equity from re- date of the purchase date of held originally measurement of Name of acquiree original held originally held before purchase equity originally equity prior to share before date transferred held before the purchase purchase date to investment purchase date date income Beijing Meinian Meifu Outpatient Co., Ltd. 5,000,000.00 9,424,000.00 4,424,000.00 Puer Meinian Onehealth Physical 2,400,000.00 7,936,000.00 5,536,000.00 Examination Center Co., Ltd. Daye Meinian Onehealth Checkup 2,400,000.00 6,500,000.00 4,100,000.00 Management Co., Ltd. Heyuan Meiyin Onehealth Management 1,920,000.00 7,200,000.00 5,280,000.00 Co., Ltd. Ezhou Meinian Onehealth Management 1,950,000.00 6,225,000.00 4,275,000.00 Co., Ltd. Kaifeng Meinian Onehealth Examination 4,045,308.33 5,508,000.00 1,462,691.67 Management Co., Ltd. JinzhongMeinianOnehealth Management 2,700,000.00 7,128,000.00 4,428,000.00 Co., Ltd. Handan City Meinian Onehealth 2,400,000.00 7,152,000.00 4,752,000.00 Management Co., Ltd. Xinjiang Puhuitai Health Management Co., 4,222,200.00 7,220,000.00 2,997,800.00 Ltd. Yuxi Meinian Onehealth Industry Co., Ltd. 2,400,000.00 7,872,000.00 5,472,000.00 Gunagyuan Meinian Onehealth 1,800,000.00 5,775,000.00 3,975,000.00 Technology Co., Ltd. Songyuan Meinian Onehealth & Wellness 1,200,000.00 3,800,000.00 2,600,000.00 Management Co., Ltd. Jiaxing Meinian Onehealth Management 1,800,000.00 5,250,000.00 3,450,000.00 Co., Ltd. 2. Business combination involving enterprises under the common control (1) Business combination involving enterprise under common control in the current year Equity proportion Basis for business Basis for acquired in the combination under determining Merged party Date of merging business the common date of combination (%) control merger Shanghai Elephant The same actual Obtain right to Medical Technology Co., 51.00 May 1, 2018 controlling person control Ltd. Mainline Health The same actual Obtain right to Technology (Beijing) 50.56 August 1, 2018 controlling person control Co., Ltd. (Cont.)

173

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Income of the Net profits of the Income of the Net profit of the acquiree from the acquiree from the merged party merged party Merged party beginning of the beginning of the during the during the merger year to the merger year to comparison comparison merger date the merger date period period Shanghai Elephant Medical Technology Co., 0.00 0.00 0.00 0.00 Ltd. Mainline Health Technology (Beijing) 105,388,327.07 116,464.36 78,487,134.92 -61,954,972.01 Co., Ltd. (2) Combination cost Shanghai Elephant Mainline Health Technology Merger cost Medical Technology (Beijing) Co., Ltd. Co., Ltd. -Cash 0.00 387,672,000.00 -Book value of non-monetary assets 0.00 0.00 -Book value of the debts issued or 0.00 0.00 assumed -Book value of equity securities 0.00 0.00 issued -Contingent consideration 0.00 0.00

(3) Book Value of assets and liabilities of the merged party on the combination date Shanghai Elephant Medical Mainline Health Technology Technology Co., Ltd. (Beijing) Co., Ltd. Item Closing balance Closing balance Merger date Merger date of prior year of prior year Assets: Currency funds 467,971.60 23,645,160.41 Account receivables 80,761,567.98 26,645,119.43 Prepayments 7,874,365.42 4,209,575.18 Other receivables 5,888,179.56 3,831,799.13 Inventories 13,294,419.41 4,065,737.04 Long-term equity investments Fixed assets 55,627,081.85 53,229,257.86 Construction in progress 912,263.84 Intangible assets 667,702.34 688,613.71 Goodwill Long-term deferred expenses 4,202,964.96 3,383,426.67 Deferred tax assets Other assets 21,904,545.67 33,823,757.40 Liabilities:

174

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Shanghai Elephant Medical Mainline Health Technology Technology Co., Ltd. (Beijing) Co., Ltd. Item Closing balance Closing balance Merger date Merger date of prior year of prior year Account payables 33,032,258.15 17,193,305.26 Advances from customers 12,525,080.12 13,438,536.33 Employee benefits payable 2,049,903.55 10,874,804.25 Taxes payable 189,005.59 340,889.58 Other payables 5,528,823.26 3,000,274.48 Non-current liabilities due 10,721,776.01 within one year Long-term payables 18,763,114.66 Net assets 0.00 0.00 108,791,101.29 108,674,636.93 Less: Non-controlling Interests 53,786,320.48 53,728,740.50 Net assets obtained 55,004,780.81 54,945,896.43

3. Change of Combination Scope due to Other Reasons The new wholly-funded subsidiaries of the Company include Hefei Meizhao Health Management Co., Ltd., Shanghai Meishunhe Health Consulting Co., Ltd., Beauty Year Health Co., Ltd., American Year Investment Co., Ltd., Chuanyu Meinian (Chongqing) Health Management Co., Ltd., Zhoushan Meici Investment Management Co., Ltd., Sichuan Meinian Onehealth Management Co., Ltd., Henan Meinian Enterprise Management Consulting Co., Ltd., Hunan Meinian Onehealth Management Co., Ltd., Shanxi Meinian Health Management Co., Ltd., Shandong Meinian Business Management Co., Ltd., Meinian Onehealth Industry Group Jilin Province Co., Ltd., Yunnan Meinian Health Management Co., Ltd., Dali Ciming Health Management Co., Ltd., Zhejiang Meinian Onehealth Management Co., Ltd., Inner Mongolia Meinian Health and Health Management Co., Ltd., Guangdong Meinian Management Consulting Co., Ltd., Guangxi Meinian Health Management Co., Ltd., Liaoning Meijian Health Management Co., Ltd., Anhui Meinian Meikang Enterprise Management Co., Ltd., Fujian Meinian Enterprise Management Co., Ltd., Dalian Meinian Health Hongxia Road Comprehensive Outpatient Department Co., Ltd., Dalian Meinian Health Xinghai Comprehensive Outpatient Co., Ltd., Dalian Meinian Onehealth Life Technology Co., Ltd. In Addition, the Company and Siemens Medical System Co., Ltd. jointly initiated the establishment of Shanghai Meiling Medical Imaging Diagnosis Center Co., Ltd.in which the Company’s holding ratio is 51.00%.

175

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

VIII. Rights and Interests in Other Entities 1. Equity in the Subsidiaries (1) Composition of Enterprises Group Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business First-level

Subsidiary: Meinian Onehealth Investment Industry (Group) Shanghai Shanghai 100.00 Acquisition management Co., Ltd. Shanghai Meizhao Nutrition and Health Management Shanghai Shanghai health 100.00 Establishment Co., Ltd. consulting Nutrition and Shanghai Meijian health Aoya Health consulting Shanghai Shanghai 100.00 Establishment Management Co., and Ltd. management consulting Beijing Meinian Insurance Insurance Broker Beijing Beijing brokerage 100.00 Establishment Co., Ltd. business Ciming Health Checkup Physical Beijing Beijing 100.00 Acquisition Management Group examination Co., Ltd. Zhoushan Meici Investment Investment Zhoushan Zhoushan 100.00 Establishment Management Co., management Ltd. Shanghai Elephant Medical Medical Technology Shanghai Shanghai technical 51.00 Acquisition Co., Ltd. services Mainline Health Medical Technology (Beijing) Beijing Beijing technical 50.56 Acquisition Co., Ltd. services Shanghai Meilu Medical Medical Imaging Shanghai Shanghai technical 51.00 Establishment Diagnosis Center services Co., Ltd. Second-level

Subsidiary Hefei Meizhao Health Health Management Hefei Hefei management 100.00 Establishment Co., Ltd. consulting Nanjing Meiyin Medical Health Technology Nanjing Nanjing technical 100.00 Acquisition Co., Ltd. services Beijing Meiyin Medical Medical Laboratory Beijing Beijing technical 100.00 Acquisition Co., Ltd. services

176

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Mein Meikang Gene Medical Technology (Wuhan) Wuhan Wuhan technical 100.00 Acquisition Co., Ltd. services Shanghai Meinian Onehealth Checkup Investment Investment Shanghai Shanghai 100.00 Establishment management Management Co., Ltd. Development Shanghai Meidong and sales of Software physical Shanghai Shanghai 100.00 Establishment Development Co., examination Ltd. management software Financial Shanghai Meixin leasing, Financial Leasing Shanghai Shanghai factoring and 75.00 Establishment Co., Ltd. consulting business Shanghai Meiai Investment Investment Shanghai Shanghai 100.00 Establishment Management Co., management Ltd. Shanghai Meinian Physical Shanghai Shanghai 100.00 Establishment Outpatient Co., Ltd. examination Shanghai Meiyi Physical Shanghai Shanghai 100.00 Establishment Outpatient Co., Ltd. examination Shanghai Meijian Physical Shanghai Shanghai 100.00 Establishment Outpatient Co., Ltd. examination Shanghai Meidong Physical Shanghai Shanghai 100.00 Establishment Outpatient Co., Ltd. examination Shanghai Meijin Physical Shanghai Shanghai 100.00 Establishment Outpatient Co., Ltd. examination Shanghai Meiheng Physical Shanghai Shanghai 100.00 Establishment Outpatient Co., Ltd. examination Shanghai Meiyan Physical Shanghai Shanghai 100.00 Establishment Outpatient Co., Ltd. examination Shanghai Meiyang Physical Shanghai Shanghai 100.00 Establishment Outpatient Co., Ltd. examination Nanjing Meinian Onehealth Physical Nanjing Nanjing 100.00 Establishment Management Co., examination Ltd. Meinian Onehealth Physical Industry Group Nantong Nantong 51.00 Acquisition examination Nantong Co., Ltd. Hangzhou Meinian Physical Medical Outpatient Hangzhou Hangzhou 100.00 Establishment examination Co., Ltd. Changshu Meinian Physical Onehealth Changshu Changshu 100.00 Acquisition examination Outpatient Co., Ltd. Jiangsu Huakang Investment Wuxi Wuxi 100.00 Acquisition Investment management 177

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Development Co., Ltd. Suzhou Chunshen Lake Meinian Physical Suzhou Suzhou 100.00 Establishment Onehealth examination Outpatient Co., Ltd. Suzhou Industrial Physical Park Meinian Suzhou Suzhou 100.00 Establishment examination Outpatient Co., Ltd. Wuxi Meinian Physical Wuxi Wuxi 100.00 Establishment Sanatorium Co., Ltd. examination Hangzhou Meinian Physical Binhe Medical Hangzhou Hangzhou 100.00 Establishment examination Outpatient Co., Ltd. Kunshan Meida Physical Kunshan Kunshan 100.00 Establishment Outpatient Co., Ltd. examination Anhui Meinian Onehealth Physical Hefei Hefei 100.00 Acquisition Management examination Consulting Co., Ltd. Wuhan Meinian Onehealth Checkup Physical Wuhan Wuhan 100.00 Establishment Management Co., examination Ltd. Zhengzhou Meinian Physical Onehealth Zhengzhou Zhengzhou 100.00 Acquisition examination Technology Co., Ltd. Changsha Meinian Onehealth & Health Physical Changsha Changsha 100.00 Acquisition Management Co., examination Ltd. Jiangxi Meinian Health Onehealth consultation Nanchang Nanchang 100.00 Establishment Management Co., and business Ltd. management Jiyuan Meinian Physical Onehealth Jiyuan Jiyuan 60.00 Acquisition examination Technology Co., Ltd. Tai'an Meinian Onehealth Checkup Physical Taian Taian 100.00 Acquisition Management Co., examination Ltd. Tianjin Meinian Investment Physical Tianjin Tianjin 100.00 Establishment Management Co., examination Ltd. Beijing Meinian Investment Health Technology Beijing Beijing 100.00 Establishment management Co., Ltd. Guangdong Meinian Investment National Medical Guangzhou Guangzhou 85.00 Establishment management Investment Co., Ltd. Shenzhen Meinian Physical Shenzhen Shenzhen 100.00 Acquisition Onehealth & examination 178

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Wellness Management Co., Ltd. Shenzhen Physical Hongkangjie Shenzhen Shenzhen 91.00 Acquisition examination Technology Co., Ltd. Hainan Meinian Onehealth Physical Haikou Haikou 75.00 Acquisition Healthcare Hospital examination Co., Ltd. Nanning Meinian Onehealth Physical Physical Nanning Nanning 100.00 Establishment Examination Co., examination Ltd. Jinzhou Meinian Physical Health Management Jinzhou Jinzhou 67.00 Acquisition examination Co., Ltd. Changchun Meinian Physical Onehealth Yu Hao Changchun Changchun 100.00 Acquisition examination Hospital Co., Ltd. Shenyang Meinian Health Health Technology Shenyang Shenyang management 100.00 Acquisition Health Management consulting Co., Ltd. Xi’an Meinian Onehealth Physical Physical Examination Xi’an Xi’an 100.00 Acquisition examination Management Co., Ltd. Hami Meinian Onehealth Physical Healthcare Hami Hami 51.00 Acquisition examination Management Co., Ltd. Yili Meinian Onehealth Health Physical Yili Yili 60.00 Acquisition Management Co., examination Ltd. Chengdu Meinian Onehealth Health Physical Chengdu Chengdu 100.00 Establishment Management Co., examination Ltd. Yunnan Meinian Physical Onehealth Kunming Kunming 75.00 Establishment examination Healthcare Co., Ltd. Chongqing Meinian Investment Onehealth Industry Chongqing Chongqing 51.00 Establishment management Co., Ltd. Guizhou Meinian Onehealth Physical Kangyuan Physical Guiyang Guiyang 100.00 Acquisition examination Examination Center Co., Ltd.

179

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Hangzhou Meixi Physical Medical Outpatient Hangzhou Hangzhou 70.00 Acquisition examination Co., Ltd. Nutrition and health Shanghai Meinian consulting Health Management Shanghai Shanghai 100.00 Establishment and Consulting Co., Ltd. management consulting Shanghai Meizhi Physical Shanghai Shanghai 100.00 Establishment Outpatient Co., Ltd. examination Heze Meinian Onehealth Physical 51.00 Examination Heze Heze Acquisition examination （note1） Management Co., Ltd. Chuanyu Meinian Health (Chongqing) Health Chongqing Chongqing management 100.00 Establishment Management Co., consulting Ltd. Bozhou Meinian Onehealth Health Physical Bozhou Bozhou 51.00 Acquisition Management Co., examination Ltd. Sichuan Meinian Health Onehealth Chengdu Chengdu management 100.00 Establishment Management Co., consulting Ltd. Henan Meinian Health Enterprise Zhengzhou Zhengzhou management 100.00 Establishment Management consulting Consulting Co., Ltd. Hunan Meinian Health Onehealth Changsha Changsha management 100.00 Establishment Management Co., consulting Ltd. Shanxi Meinian Health Health Management Taiyuan Taiyuan management 100.00 Establishment Co., Ltd. consulting Shandong Meinian Health Business Jinan Jinan management 100.00 Establishment Management Co., consulting Ltd. Meinian Onehealth Health Industry Group Jilin Changchun Changchun management 100.00 Establishment Province Co., Ltd. consulting Yunnan Meinian Health Health Management Kunming Kunming management 100.00 Establishment Co., Ltd. consulting Zhejiang Meinian Health Onehealth consultation Hangzhou Hangzhou 100.00 Establishment Management Co., and business Ltd. management

180

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Inner Mongolia Health Meinian Health and Hohhot Hohhot management 100.00 Establishment Health Management consulting Co., Ltd. Guangdong Meinian Health Management Shenzhen Shenzhen management 100.00 Establishment Consulting Co., Ltd. consulting Guangxi Meinian Health Health Management Nanning Nanning management 100.00 Establishment Co., Ltd. consulting Liaoning Meijian Health Health Management Shenyang Shenyang management 100.00 Establishment Co., Ltd. consulting Anhui Meinian Meikang Enterprise Management Maanshan Maanshan 100.00 Establishment Management Co., consulting Ltd. Fujian Meinian Enterprise Management Xiamen Xiamen 100.00 Establishment Management Co., consulting Ltd. Ciming Health Checkup Management Group Physical Beijing Beijing 100.00 Acquisition Beijing Ciming examination Lenovo Bridge Outpatient Co., Ltd. Ciming Health Checkup Management Group Physical Beijing Beijing 100.00 Acquisition Beijing Ciming examination Shangdi Outpatient Department Co., Ltd. Ciming Health Checkup Management Group Physical Beijing Beijing 100.00 Acquisition Beijing Ciming Ciyun examination Temple Outpatient Branch Co., Ltd. Beijing Ciming Aoya Physical Yuetan Outpatient Beijing Beijing 100.00 Acquisition examination Co., Ltd. Beijing Ciming Star Information Information Beijing Beijing technology 100.00 Acquisition Technology Co., Ltd. services Ciming Health Checkup Physical Shanghai Shanghai 100.00 Acquisition Management Group examination Shanghai Co., Ltd. Shenzhen Ciming Health Checkup Physical Shenzhen Shenzhen 100.00 Acquisition Management Co., examination Ltd.

181

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Ciming Health Checkup Physical Guangzhou Guangzhou 100.00 Acquisition Management Group examination Guangzhou Co., Ltd. Ciming Health Examination Physical Wuhan Wuhan 100.00 Acquisition Management Group examination Wuhan Co., Ltd. Ciming Health Checkup Physical Dalian Dalian 100.00 Acquisition Management Group examination (Dalian) Co., Ltd. Ciming Health Checkup Physical Nanjing Nanjing 100.00 Acquisition Management Group examination Nanjing Co., Ltd. Ciming Health Checkup Physical Tianjin Tianjin 99.00 Acquisition Management Group examination Tianjin Co., Ltd. Shandong Ciming Health Checkup Physical Jinan Jinan 79.00 Acquisition Management Co., examination Ltd. Chengdu Ciming Physical Health Management Chengdu Chengdu 100.00 Acquisition examination Co., Ltd. Linyi Ciming Health Checkup Physical Linyi Linyi 100.00 Acquisition Management Co., examination Ltd. Jilin Ciming Health Checkup Physical Changchun Changchun 100.00 Acquisition Management Co., examination Ltd. Ciming Health Health Checkup Hangzhou Hangzhou management 100.00 Acquisition Management Group consulting Hangzhou Co., Ltd. Jinhua Ciming Physical Health Management Jinhua Jinhua 100.00 Acquisition examination Co., Ltd. Qingdao Ciming Physical Health Management Qingdao Qingdao 93.00 Acquisition examination Co., Ltd. Ningbo Ciming Health Checkup Physical Investment Ningbo Ningbo 55.56 Acquisition examination Management Co., Ltd. Hefei Ciming Health Checkup Physical Hefei Hefei 100.00 Acquisition Management Co., examination Ltd. 182

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Urumqi Huarui Tianmei Health Physical Urumqi Urumqi 90.00 Acquisition Management Co., examination Ltd. Hospital Ciming Aoya management Hospital Beijing Beijing and 100.00 Acquisition Management Co., enterprise Ltd. management Tongliao Ciming Physical Health Management Tongliao Tongliao 51.00 Acquisition examination Co., Ltd. Changchun Baiwei Physical Ci Kang Hospital Changchun Changchun 80.00 Acquisition examination Co., Ltd. Third-level

Subsidiaries Meijian Company Investment BVI BVI 100.00 Establishment Limited management Jiaxing Meinian Onehealth Physical Jiaxing Jiaxing 51.00 Acquisition Management Co., examination Ltd. Ningbo Haishu Meinnian Physical Ningbo Ningbo 100.00 Acquisition Comprehensive examination Outpatient Co., Ltd. Xiamen Meinian Onehealth Physical Xiamen Xiamen 100.00 Acquisition management Co., examination Ltd Ningbo Yinzhou Yihe Physical Comprehensive Ningbo Ningbo 51.00 Acquisition examination Outpatient Co., Ltd. Nanjing Mei Shi Year Physical Specialist Outpatient Nanjing Nanjing 51.00 Acquisition examination Department Co., Ltd. Wuxi Huakang Physical Wuxi Wuxi 100.00 Acquisition Outpatient Co., Ltd. examination Suzhou Meida Physical Suzhou Suzhou 100.00 Acquisition Outpatient Co., Ltd. examination Wuxi Binhu District Physical Meinian Onehealth Wuxi Wuxi 100.00 Establishment examination Outpatient Co., Ltd. Anhui Tzu Chi Medical Investment Physical Bengbu Bengbu 52.01 Acquisition Management Co., examination Ltd. Wuhan Gaoxin Physical Wuhan Wuhan 100.00 Acquisition Outpatient Co., Ltd. examination Wuhan Meinian Physical Health Management Wuhan Wuhan 51.00 Acquisition examination Co., Ltd.

183

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Xiangyang Meinian Onehealth Physical Xiangyang Xiangyang 72.00 Acquisition Management Co., examination Ltd. Wuhan Meinian Health Yisheng Health Wuhan Wuhan management 100.00 Acquisition Management Co., consulting Ltd. Daye Meinian Onehealth Checkup Physical Daye Daye 51.00 Acquisition Management Co., examination Ltd. Ezhou Meinian Onehealth Physical Ezhou Ezhou 51.00 Acquisition Management Co., examination Ltd. Xinxiang Meinian Onehealth Physical Xinxiang Xinxiang 51.00 Acquisition Management Co., examination Ltd. Luoyang Meinian Onehealth Physical Luoyang Luoyang 51.00 Acquisition Information examination Consulting Co., Ltd. Liyang Meinian Physical Onehealth Puyang Puyang 51.00 Acquisition examination Consulting Co., Ltd. Zhengzhou Meinian Health Medical Physical Zhengzhou Zhengzhou 100.00 Acquisition Management Co., examination Ltd. Pingdingshan Meinian Onehealth Pingdingsh Pingdingsha Physical 51.00 Acquisition Technology Service an n examination Co., Ltd. Xinyang Meinian Onehealth Physical Xinyang Xinyang 51.00 Acquisition Management Co., examination Ltd. Zhuzhou Meinian Onehealth & Physical Wellness Zhuzhou Zhuzhou 100.00 Acquisition examination Management Co., Ltd. Yueyang Meinian Onehealth & Health Physical Yueyang Yueyang 51.00 Acquisition Management Co., examination Ltd. Xiangtan Meinian Onehealth & Health Physical Xiangtan Xiangtan 91.76 Acquisition Management Co., examination Ltd. Nanchang Honggu Physical Nanchang Nanchang 100.00 Acquisition Changgeng Health examination 184

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Checkup Center Co., Ltd. Nanchang Qingshan Lake Chang Gung Physical Nanchang Nanchang 100.00 Establishment Health Checkup examination Center Co., Ltd. Yichun Meinian Physical Onehealth Checkup Yichun Yichun 51.00 Acquisition examination Co., Ltd. Nanchang Meikang Physical Health Checkup Nanchang Nanchang 100.00 Acquisition examination Center Co., Ltd. Linyi Meinian Health Checkup Physical Linyi Linyi 58.90 Acquisition Management Co., examination Ltd. Kaifeng Meinian Onehealth Physical Examination Kaifeng Kaifeng 51.00 Acquisition examination Management Co., Ltd. Tianjin Binhai New Physical Area Meijian Tianjin Tianjin 100.00 Establishment examination Outpatient Co., Ltd. Tianjin Binhai New Physical Area Meixin Tianjin Tianjin 100.00 Acquisition examination Outpatient Co., Ltd. Beijing Meinian Physical Outpatient Beijing Beijing 100.00 Establishment examination Department Co., Ltd. Beijing Meinian Physical Meikang Outpatient Beijing Beijing 100.00 Establishment examination Co., Ltd. Beijing Meinian Physical Chinese Medicine Beijing Beijing 100.00 Establishment examination Hospital Co., Ltd. Beijing Meinian Physical Jiajing Outpatient Beijing Beijing 100.00 Acquisition examination Co., Ltd. Beijing Meinian Physical Lushengyuan Beijing Beijing 100.00 Acquisition examination Outpatient Co., Ltd. Beijing Meinian Physical Meijia Outpatient Beijing Beijing 100.00 Establishment examination Co., Ltd. Beijing Meinian Physical Meifu Outpatient Beijing Beijing 100.00 Acquisition examination Co., Ltd. Beijing Yang Nian Tang Chinese Physical Beijing Beijing 72.35 Establishment Medicine Outpatient examination Co., Ltd.

185

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Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Guangzhou Meinian Investment Onehealth Medical Guangzhou Guangzhou 97.00 Establishment management Technology Co., Ltd. Dongguan Meinian Onehealth Hospital Investment Investment Dongguan Dongguan 100.00 Acquisition management Management Co., Ltd. Foshan Meinian Onehealth Checkup Physical Foshan Foshan 70.00 Acquisition Management Co., examination Ltd. Zhengzhou Physical Hongkangjie Zhengzhou Zhengzhou 91.41 Establishment examination Technology Co., Ltd. Sichuan Hongkangjie Medical Physical Investment Chengdu Chengdu 91.41 Acquisition examination Management Co., Ltd. Haikou Ciming Health Outpatient Physical Haikou Haikou 74.25 Acquisition (General examination Partnership) Shenyang Onehealth and Physical Wellness Shenyang Shenyang 100.00 Acquisition examination Management Co., Ltd. Dalian Meinian Onehealth Physical Dalian Dalian 100.00 Acquisition Management Co., examination Ltd. Harbin Meinian Physical Onehealth Checkup Harbin Harbin 100.00 Acquisition examination Station Co., Ltd. Taiyuan Meinian Onehealth Technology Physical Taiyuan Taiyuan 75.00 Acquisition Onehealth examination Management Co., Ltd. Qingdao Onehealth Technology Physical Onehealth Qingdao Qingdao 100.00 Acquisition examination Management Co., Ltd. Huhehaote Meinian Onehealth & Health Physical Hohhot Hohhot 89.64 Establishment Examination Co., examination Ltd. Jinan Onehealth and Physical Jinan Jinan 100.00 Acquisition Onehealth Checkup examination

186

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Management Co., Ltd. Shijiazhuang Meinian Onehealth Shijiazhuan Physical Checkup Shijiazhuang 100.00 Acquisition g examination Management Co., Ltd. Dandong Meinian Onehealth & Health Physical Dandong Dandong 70.00 Acquisition Management Co., examination Ltd. Huludao Meinian Onehealth Physical Huludao Huludao 65.00 Acquisition Management Co., examination Ltd. Songyuan Meinian Onehealth & Physical Wellness Songyuan Songyuan 60.00 Acquisition examination Management Co., Ltd. Xi’an Qujiang New Physical District Onehealth Xi’an Xi’an 100.00 Establishment examination Outpatient Co., Ltd. Lanzhou Meinian Onehealth Healthcare Physical Lanzhou Lanzhou 100.00 Establishment Management Co., examination Ltd. Xinjiang Meinian Onehealth Healthcare Physical Urumqi Urumqi 100.00 Establishment Management Co., examination Ltd. Xinjiang Puhuitai Physical Health Management Urumqi Urumqi 100.00 Acquisition examination Co., Ltd. Chengdu Meinian Physical Physical Chengdu Chengdu 100.00 Establishment Examination examination Hospital Co., Ltd. Chengdu Onehealth Technology Physical Chengdu Chengdu 100.00 Acquisition Management Co., examination Ltd. Dali Meinian Physical Physical 47.25 Dali Dali Acquisition Examination examination （Note 2） Hospital Co., Ltd. Chengdu Kai'er Health Physical Physical Chengdu Chengdu 100.00 Acquisition Examination examination Hospital Co., Ltd. Chengdu Tianfu New Physical District Aoya Chengdu Chengdu 100.00 Acquisition examination Hospital Co., Ltd.

187

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Leshan Meinian Physical Onehealth Service Leshan Leshan 51.00 Acquisition examination Co., Ltd. Chongqing Onehealth Physical Physical Examination Chongqing Chongqing 96.04 Acquisition examination Management Co., Ltd. Xichang Meinian Onehealth Health Physical Xichang Xichang 51.00 Acquisition Management Co., examination Ltd. Suining Meinian Physical Physical Suining Suining 51.00 Acquisition Examination examination Hospital Co., Ltd. Deyang Meinian Physical Physical Deyang Deyang 51.00 Acquisition Examination examination Hospital Co., Ltd. Chengdu Jinjiang Meinian Onehealth Physical Weikang Medical Chengdu Chengdu 55.00 Acquisition examination Outpatient Branch Co., Ltd. Puer Meinian Onehealth Physical Physical Pu’er Pu’er 64.00 Acquisition Examination Center examination Co., Ltd. Gunagyuan Meinian Physical Onehealth Guangyuan Guangyuan 60.00 Acquisition examination Technology Co., Ltd. Chongqing Onehealth Physical Physical Examination Chongqing Chongqing 75.01 Acquisition examination Management Co., Ltd. Nutrition and health Shanghai consulting Meishunhe Health Shanghai Shanghai 100.00 Establishment and Consulting Co., Ltd. management consulting Heze Meinian Onehealth & Health Physical 26.01 Heze Heze Acquisition Management Co., examination （Note1） Ltd. Dali Ciming Health Physical Management Co., Dali Dali 51.00 Establishment examination Ltd. Yuxi Meinian Health 47.00 Onehealth Industry Yuxi Yuxi management Acquisition （Note 3） Co., Ltd. consulting

188

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Shanghai Ciming Physical Shanghai Shanghai 100.00 Acquisition Outpatient Co., Ltd. examination Shanghai Excellence Physical Ci Ming Outpatient Shanghai Shanghai 100.00 Acquisition examination Co., Ltd. Shanghai Zhicheng Physical Ciming Outpatient Shanghai Shanghai 100.00 Acquisition examination Co., Ltd. Shanghai Physical Zhengyuan Ciming Shanghai Shanghai 100.00 Acquisition examination Outpatient Co., Ltd. Shanghai Chuyuan Physical Ciming Outpatient Shanghai Shanghai 100.00 Acquisition examination Co., Ltd. Dongguan Ciming Health Checkup Physical Dongguan Dongguan 100.00 Acquisition Management Co., examination Ltd. Guangzhou Ciming Physical Guangzhou Guangzhou 100.00 Acquisition Outpatient Co., Ltd. examination Guangzhou Ciming Physical Dongfeng Outpatient Guangzhou Guangzhou 100.00 Acquisition examination Co., Ltd. Guangzhou Ciming Physical Excellence Guangzhou Guangzhou 100.00 Acquisition examination Outpatient Co., Ltd. Dalian Ciming Physical Comprehensive Dalian Dalian 100.00 Acquisition examination Outpatient Co., Ltd. Dalian Ciming Xinghai Xintiandi Physical Dalian Dalian 100.00 Acquisition Comprehensive examination Outpatient Co., Ltd. Dalian Ciming High- Physical tech Comprehensive Dalian Dalian 100.00 Acquisition examination Outpatient Co., Ltd. Hangzhou Ciming Friendship Physical Hangzhou Hangzhou 100.00 Acquisition Comprehensive examination Outpatient Co., Ltd. Beijing Ciming Oya Shangdi Brilliant Physical Beijing Beijing 100.00 Acquisition Outpatient Branch examination Co., Ltd. Fourth-level

Subsidiaries New Health Holdings Investment BVI BVI 100.00 Acquisition Limited management Wenzhou Aoya Physical Wenzhou Wenzhou 82.00 Acquisition Hospital Co., Ltd. examination Wuhan Meinian Yisheng Physical Wuhan Wuhan 100.00 Acquisition Comprehensive examination Outpatient Co., Ltd. 189

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Retail of Wuhan Drugs and Renfuyisheng Health Wuhan Wuhan Medical 100.00 Acquisition Pharmacy Co., Ltd. Devices I and II Huangshi Meinian Onehealth Checkup Physical Huangshi Huangshi 51.00 Acquisition Management Co., examination Ltd. Xinxiang Ciming Health Health Management Xinxiang Xinxiang management 51.00 Acquisition Co., Ltd. consulting Linyi Onehealth and Onehealth Checkup Physical Linyi Linyi 58.90 Acquisition File Management examination Co., Ltd. Linyi Meigu Health Health Checkup Linyi Linyi management 58.90 Acquisition Management Co., consulting Ltd. Guangzhou Meinian Physical Medical Outpatient Guangzhou Guangzhou 97.00 Establishment examination Co., Ltd. Guangzhou Meinian Physical Health Fuhai Guangzhou Guangzhou 97.00 Establishment examination Outpatient Co., Ltd. Guangdong Youyi Physical Health Management Guangzhou Guangzhou 67.90 Acquisition examination Co., Ltd. Zhongshan Meinian Health Onehealth Zhongshan Zhongshan management 77.60 Acquisition Management Co., consulting Ltd. Heyuan Meiyin Onehealth Physical Heyuan Heyuan 65.96 Acquisition Management Co., examination Ltd. Dongguan Nancheng Physical Meinian Onehealth Dongguan Dongguan 100.00 Establishment examination Outpatient Co., Ltd. Liaoyang Meinian Onehealth & Physical Wellness Liaoyang Liaoyang 100.00 Acquisition examination Management Co., Ltd. Dalian Lushun Meinian Onehealth New City Physical Dalian Dalian 100.00 Acquisition Comprehensive examination Outpatient Department Co., Ltd. Dalian Meinian Physical Dalian Dalian 100.00 Establishment Health Xinghai examination

190

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Comprehensive Outpatient Co., Ltd. Dalian Meinian Health Hongxia Road Physical Comprehensive Dalian Dalian 100.00 Establishment examination Outpatient Department Co., Ltd. Dalian Meinian Physical Onehealth Life Dalian Dalian 100.00 Establishment examination Technology Co., Ltd. Jilin City Onehealth Technology Physical Jilin Jilin 100.00 Acquisition Management Co., examination Ltd. Yanbian Meinian Onehealth Physical Comprehensive Yanji Yanji 100.00 Acquisition examination Outpatient Department Co., Ltd. Yuncheng Meinian Physical 38.25 Onehealth Medical Yuncheng Yuncheng Establishment examination （Note 4） Examination Co., Ltd. JinzhongMeinianOne Physical 38.25 health Management Jinzhong Jinzhong Acquisition examination （Note 3） Co., Ltd. Qingdao Nan Physical Onehealth Outpatient Qingdao Qingdao 99.90 Acquisition examination Co., Ltd. Qingdao Nan Meinian Physical Onehealth Outpatient Qingdao Qingdao 100.00 Establishment examination Co., Ltd. Weifang Meinian Onehealth & Physical Wellness Weifang Weifang 51.00 Acquisition examination Management Co., Ltd. Yantai Ciming Health Checkup Physical Yantai Yantai 89.79 Acquisition Management Co., examination Ltd. Handan City Meinian Onehealth Physical Handan Handan 51.00 Acquisition Management Co., examination Ltd. Lanzhou Meinian Onehealth Jinmao Physical Healthcare Lanzhou Lanzhou 51.00 Acquisition examination Management Co., Ltd. Mianyang Meinian Physical Onehealth Mianyang Mianyang 60.00 Acquisition examination Technology Co., Ltd. Chengdu Wuhou Physical Chengdu Chengdu 55.00 Acquisition Weikang Meinian examination 191

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Principal Name of Registration Business Shareholding Acquisition place of Subsidiaries place nature (%) method business Onehealth Outpatient Co., Ltd. Yuxi Meinian Physical 47.00 Onehealth Checkup Yuxi Yuxi Acquisition examination （Note 3） Center Co., Ltd. Dongguan Physical Nancheng Ciming Dongguan Dongguan 100.00 Establishment examination Outpatient Co., Ltd. Beauty Year Health Investment Hongkong Hongkong 100.00 Establishment Co., Ltd. management Fifth-level

Subsidiaries Meijia Health Investment Hongkong Hongkong 81.00 Acquisition Holdings Co., Ltd. management Zhongshan Meinian Physical Outpatient Zhongshan Zhongshan 77.60 Acquisition examination Department Co., Ltd. Weifang Meinian Huier Health Physical Weifang Weifang 51.00 Acquisition Management Co., examination Ltd. American Year Investment BVI BVI 100.00 Establishment Investment Co., Ltd. management Sixth-level

Subsidiaries Meizhao Life Beijing Investment Capital Holdings Samoa Samoa 81.00 Acquisition management Co., Ltd. Meizhao Life Investment Shanghai Capital Samoa Samoa 81.00 Acquisition management Holdings Co., Ltd. Seventh-level

Subsidiaries Beijing Meizhao Physical Physical Beijing Beijing 56.70 Acquisition Examination Center examination Co., Ltd. Shanghai Meizhao Physical Shanghai Shanghai 56.70 Acquisition Clinic 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 Checkup Management Co., Ltd.; Shenyang Meinian Health Technology Health Management Co., Ltd. holds 100.00% equity of Jinan Onehealth and health Checkup Management Co., Ltd.; Jinan Onehealth and health Checkup Management Co., Ltd. holds 31.00% equity of Heze Meinian Onehealth Examination Management Co., Ltd.; Tai'an Meinian Onehealth Checkup Management Co., Ltd. holds 20.00% equity of Heze Meinian Onehealth Examination Management Co., Ltd.; Heze Meinian Onehealth Examination Management Co., Ltd. holds 51.00% equity of Heze Meinian 192

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Onehealth & Health Management Co., Ltd.; so the Company holds 51.00% equity of Heze Meinian Onehealth 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 Healthcare 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.; so the Company holds 47.25% equity of Dali Meinian Physical Examination Hospital 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 Checkup 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 Checkup Center Co., Ltd. Note 4: Meinian Onehealth holds 100.00% equity of Shenyang Meinian Health Technology Health Management Co., Ltd.; Shenyang Meinian Health Technology Health Management Co., Ltd. holds 75.00% equity of Taiyuan Meinian Onehealth Technology Onehealth Management Co., Ltd.; Taiyuan Meinian Onehealth Technology Onehealth Management Co., Ltd. holds 51.00% equity of Yuncheng Meinian Onehealth Medical Examination Co., Ltd. and 51.00% equity of Jinzhong Meinian Onehealth Management Co., Ltd.; so the Company holds 38.25% equity of Yuncheng Meinian Onehealth Medical Examination Co., Ltd. and 38.25% equity of Jinzhong Meinian Onehealth Management Co., Ltd. (2) Significant non-wholly owned subsidiaries Shareholding Profit or loss Dividends Closing balance proportion of attributable to distributed to of non-controlling Name of Subsidiaries non-controlling non-controlling non-controlling shareholders' shareholders shareholders shareholders equity (%) this year this year Shenzhen Hongkangjie 9.00 4,256,802.79 12,169,312.64 Technology Co., Ltd. Hainan Meinian Onehealth 25.00 2,768,871.22 19,176,630.13 Healthcare Hospital Co., Ltd.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Shareholding Profit or loss Dividends Closing balance proportion of attributable to distributed to of non-controlling Name of Subsidiaries non-controlling non-controlling non-controlling shareholders' shareholders shareholders shareholders equity (%) this year this year Yunnan Meinian Onehealth 25.00 7,646,769.99 22,699,683.95 Healthcare Co., Ltd. (3) Main financial information of significant non-wholly owned subsidiaries

Closing balance Subsidiary Current Non-current Current assets Non-current assets Total assets Total liabilities liabilities liabilities Shenzhen Hongkangjie 183,127,117.20 8,264,319.04 191,391,436.24 54,256,004.46 54,256,004.46 Technology Co., 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 93,301,711.78 106,825,738.89 200,127,450.67 98,841,084.30 10,506,761.91 109,347,846.21 Co., Ltd. (Cont.)

Opening balance Subsidiary Non-current Current assets Non-current assets Total assets Current liabilities Total liabilities liabilities Shenzhen Hongkangjie 227,232,277.32 22,346,791.30 249,579,068.62 49,621,752.34 49,621,752.34 Technology Co., Ltd. Hainan Meinian Onehealth Healthcare 58,425,891.42 52,388,563.06 110,814,454.48 37,628,869.37 6,984,719.75 44,613,589.12 Hospital Co., Ltd. Yunnan Meinian Onehealth Healthcare 76,000,499.45 65,960,027.76 141,960,527.21 74,906,171.47 6,842,699.87 81,748,871.34 Co., Ltd. (Cont.) Current year Total Cash flow from Subsidiary Operating Net profits comprehensive operating revenue incomes activities Shenzhen Hongkangjie 155,653,948.97 48,447,686.29 48,447,686.29 83,933,379.62 Technology Co., Ltd. Hainan Meinian Onehealth Healthcare Hospital Co., 74,963,309.63 10,505,655.16 10,505,655.16 27,089,891.71 Ltd. Yunnan Meinian Onehealth 164,460,051.70 30,587,079.98 30,587,079.98 28,788,985.41 Healthcare Co., Ltd. (Cont.)

194

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Prior year Total Cash flow from Subsidiary Operating Net profits comprehensive operating revenue incomes activities Shenzhen Hongkangjie 148,466,107.31 37,992,933.86 37,992,933.86 8,705,544.37 Technology Co., Ltd. Hainan Meinian Onehealth Healthcare Hospital Co., 66,200,099.65 10,450,050.62 10,450,050.62 19,153,445.17 Ltd. Yunnan Meinian Onehealth 148,075,599.24 17,228,797.34 17,228,797.34 22,143,309.02 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. The acquisition of non-controlling shares led to the change of owner’s equity share in the subsidiary In 2018, the Company acquired non-controlling shares of the controlled subsidiary, namely Ningbo Haishu Meinian Comprehensive Outpatient Co., Ltd., Xiamen Meinian Onehealth management Co., Ltd., Zhengzhou Meinian Health Medical Management Co., Ltd., Hainan Meinian Onehealth Healthcare Hospital Co., Ltd., Liaoyang Meinian Onehealth & Wellness Management Co., Ltd., Huhehaote Meinian Onehealth & Health Examination Co., Ltd., Xinjiang Meinian Onehealth Healthcare Management Co., Ltd., Guangdong Youyi Health Management Co., Ltd. and Tai'an Meinian Onehealth Checkup Management Co., Ltd. In 2018, the Company acquired non-controlling shares of the controlled subsidiary, namely Ciming health management group Hangzhou co. Ltd. and Hefei Ciming Health Checkup Management Co., Ltd. In 2018, the Company acquired non-controlling shares of the controlled subsidiary Xinjiang Meinian Onehealth Healthcare Management Co., Ltd., which leads to the indirect acquisition of non-controlling shares in Hami Meinian Onehealth Healthcare Management Co., Ltd. and Yili Meinian Onehealth Health Management Co., Ltd. 2. The disposal of non-controlling shares led to the change in owner’s equity shares in the subsidiary In 2018, the wholly-owned subsidiary Zhengzhou Onehealth Technology Co., Ltd. transferred the shares in Zhengzhou Hongkangjie Technology Co., Ltd. to its non-wholly owned subsidiary Shenzhen Hongkangjie Technology Co., Ltd.; the wholly-owned subsidiary Chengdu Meinian Onehealth Health Management Co., Ltd. transferred the shares in Sichuan Hongkangjie Medical Investment Management Co., Ltd. to its non-

195

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 wholly owned subsidiary Shenzhen Hongkangjie Technology Co., Ltd., which leads to the indirect disposal of non-controlling shares in Zhengzhou Hongkangjie Technology Co., Ltd. and Sichuan Hongkangjie Medical Investment Management Co., Ltd. (2) The influence of the transactions on the non-controlling shareholders and the owner’s equity attributed to the holding company Ningbo Haishu Zhengzhou Meinian Xiamen Meinian Meinnian Health Medical Item Onehealth Comprehensive Management Co., management Co., Ltd Outpatient Co., Ltd. Ltd. Consideration of purchase cost -Cash 15,000,000.00 13,600,000.00 18,900,000.00 -Fair value of non-monetary assets Total Consideration of 15,000,000.00 13,600,000.00 18,900,000.00 purchase cost Less: Subsidiary net assets share based on the 1,829,901.06 3,980,829.95 6,497,628.30 proportion of equity acquired Difference -13,170,098.94 -9,619,170.05 -12,402,371.70 Including: Adjusted capital -13,170,098.94 -9,619,170.05 -12,402,371.70 reserve (Cont.) Hainan Meinian Liaoyang Meinian Huhehaote Onehealth Onehealth & Meinian Onehealth Item Healthcare Hospital Wellness & Health Co., Ltd. Management Co., Examination Co., Ltd. Ltd. Consideration of purchase cost -Cash 30,000,000.00 35,280,000.00 19,305,000.00 -Fair value of non-monetary assets Total Consideration of purchase 30,000,000.00 35,280,000.00 19,305,000.00 cost Less: Subsidiary net assets share based on the proportion of equity 16,030,665.12 16,553,687.08 8,816,235.39 acquired Difference -13,969,334.88 -18,726,312.92 -10,488,764.61 Including: Adjusted capital -13,969,334.88 -18,726,312.92 -10,488,764.61 reserve (Cont.) Xinjiang Meinian Guangdong Youyi Tai'an Meinian Onehealth Health Management Onehealth Item Healthcare Co., Ltd. Checkup Management Co., Management Co., Ltd. Ltd. Consideration of purchase cost

196

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Xinjiang Meinian Guangdong Youyi Tai'an Meinian Onehealth Health Management Onehealth Item Healthcare Co., Ltd. Checkup Management Co., Management Co., Ltd. Ltd. -Cash 30,000,000.00 3,000,000.00 74,555,000.00 -Fair value of non-monetary assets Total Consideration of purchase 30,000,000.00 3,000,000.00 74,555,000.00 cost Less: Subsidiary net assets share based on the proportion of equity 8,121,108.04 889,269.62 21,992,970.19 acquired Difference -21,878,891.96 -2,110,730.38 -52,562,029.81 Including: Adjusted capital -21,878,891.96 -2,110,730.38 -52,562,029.81 reserve (Cont.) Hefei Ciming Health Ciming Health Management Item Checkup Management Co., Group Hangzhou Co. LTD Ltd. Consideration of purchase cost -Cash 24,304,000.00 35,280,000.00 -Fair value of non-monetary assets Total Consideration of purchase cost 24,304,000.00 35,280,000.00 Less: Subsidiary net assets share based on the proportion of equity 978,199.31 5,679,808.33 acquired Difference -23,325,800.69 -29,600,191.67 Including: Adjusted capital reserve -23,325,800.69 -29,600,191.67

(Cont.) Hami Meinian Heze Meinian Yili Meinian Onehealth Onehealth Onehealth Health Item Healthcare Examination Management Co., Management Co., Management Co., Ltd. Ltd. Ltd. Consideration of purchase cost -Cash -Fair value of non-monetary assets Total Consideration of purchase 0.00 0.00 0.00 cost Less: Subsidiary net assets share based on the proportion of equity 493,320.56 937,796.28 510,215.71 acquired Difference 493,320.56 937,796.28 510,215.71 Including: Adjusted capital 493,320.56 937,796.28 510,215.71 reserve

197

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

(Cont.) Zhengzhou Hongkangjie Sichuan Hongkangjie Medical Item Technology Co., Ltd. Investment Management Co., Ltd. Consideration of purchase cost -Cash 408,240.00 831,150.00 -Fair value of non-monetary assets Total Consideration of purchase 408,240.00 831,150.00 cost Less: Subsidiary net assets share based on the proportion of equity 505,715.83 925,663.63 acquired Difference 97,475.83 94,513.63 Including: Adjusted capital reserve 97,475.83 94,513.63

3. Equity in Associated Enterprise (1) Important Joint Venture Shareholding (%) Accounting treatment Joint Venture or Main method for Registration Associated business Business nature investment in place Enterprise place Direct Indirect joint ventures or Associated Enterprise Technical Shanghai consultation and Haozhuo Data Shanghai Shanghai technical services 11.40 Equity method Service Co., in date service Ltd. (Note 2) field Jiangsu Consultation and Huakang service marketing Vocational Wuxi Wuxi planning for 35.00 Equity method Health occupational Consulting Co., disease prevention Ltd. (2) Main Financial Information of Significant Joint Ventures Closing balance/amount incurred this year Item Shanghai Haozhuo Data Service Jiangsu Huakang Co., Ltd. Vocational Health Consulting Co., Ltd. Current assets 13,670,480.90 28,850,886.27 Non-current assets 2,935,140.11 38,052,077.50 Total assets 16,605,621.01 66,902,963.77 Current liabilities 20,633,767.59 43,318,919.78 Non-current liabilities 5,330,040.00 Total liabilities 20,633,767.59 48,648,959.78

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Closing balance/amount incurred this year Item Shanghai Haozhuo Data Service Jiangsu Huakang Co., Ltd. Vocational Health Consulting Co., Ltd. Non-controlling equity 2,265,339.43 Shareholders' equity attributable to -4,028,146.58 15,988,664.56 parent company Net assets share calculated at -459,208.71 5,596,032.60 shareholding ratio Book value of equity investment to 5,596,032.60 associated enterprise Operating revenue 41,813,088.15 39,345,383.19 Net profit -38,164,031.00 -3,588,064.32 Net profits from termination of operation Other comprehensive incomes Total comprehensive incomes -38,164,031.00 -3,588,064.32 Dividends obtained from associated enterprises (3) Summarized Financial Information of Insignificant Joint Venture or Associated Enterprise Closing balance / amount incurred this Item year Associated Enterprise: Total Book Value for Investment 54,635,337.38 Total of the followings calculated at the proportion of shareholding -Net profits -8,604,361.19 -Other comprehensive income -Total comprehensive income 54,635,337.38

(4) Excessive loss in associates or joint venture Accumulative Accumulative Unrecognized loss (or unrecognize Name of Joint Venture or unrecognized loss at net profits shared) in d loss at the Associated Enterprise the end of the prior year the current year end of this year Shanghai Haozhuo Data Service 459,123.72 459,123.72 Co., Ltd.

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

199

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 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., 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 Closing balance Opening balance Cash and cash equivalent Including: USD 1,389,093.40 1,433,580.27

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Closing balance Opening balance SGD 139,300.00 139,300.00 Other receivables Including: USD 1,620.00 Other payables Including: USD 3,407.90 3,010.03

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: Current Year Prior year Changes of Effect on Effect on Items Effect on net Effect on net exchange rate shareholders' shareholders' profit profit equity equity Appreciation of USD 95,213.55 95,213.55 89,992.55 89,992.55 1% to RMB Devaluation of USD -95,213.55 -95,213.55 -89,992.55 -89,992.55 1% to RMB Appreciation of SGD 6,973.64 6,973.64 8,932.52 8,932.52 1% to RMB Devaluation of SGD -6,973.64 -6,973.64 -8,932.52 -8,932.52 1% to RMB (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. 18 and VI. 26). 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: Items Change of Current year Prior year

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

interest rate Effect on Effect on Effect on net Effect on net shareholders' shareholders' profit profit equity equity Short-term Increased -24,137,498.70 -24,137,498.70 -11,444,293.00 -11,444,293.00 borrowings by 1% Short-term Decreased 24,137,498.70 24,137,498.70 11,444,293.00 11,444,293.00 borrowings by 1% Long-term Increased -21,202,332.91 -21,202,332.91 -9,956,048.71 -9,956,048.71 borrowings by 1% Long-term Decreased 21,202,332.91 21,202,332.91 9,956,048.71 9,956,048.71 borrowings by 1% Short-term Increased -4,000,000.00 -4,000,000.00 bonds by 1% Short-term Decreased 4,000,000.00 4,000,000.00 bonds by 1% Long-term Increased -8,961,236.47 -8,961,236.47 -3,964,987.70 -3,964,987.70 bonds by 1% Long-term Decreased 8,961,236.47 8,961,236.47 3,964,987.70 3,964,987.70 bonds by 1% 2. Credit Risk Credit risk refers to the risk that a party to a financial instrument cannot perform its obligations, causing financial losses to the other party. 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. 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. 202

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

X. 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 Relationship of other related parties Name of other related parties with the Company Chengdu Jinniu Meinian Onehealth Management Controlled by the actual-controller Consulting Co., Ltd. Chengdu Meinian Onehealth Center Onehealth Outpatient Controlled by the actual-controller Co., Ltd. Chengdu Meizhao Outpatient Co., Ltd. Controlled by the actual-controller Chengdu Wuhou Meinian Onehealth Outpatient Co., Ltd. Controlled by the actual-controller Zhangzhou Meinian Onehealth Hospital Co., Ltd. Controlled by the actual-controller Dongguan Humen Meinian Onehealth Outpatient Co., Ltd. Controlled by the actual-controller Dongguan Changan Meinian Health Management Co., Ltd. Controlled by the actual-controller Foshan Wanda Meizhao Health Management Co., Ltd. Controlled by the actual-controller Fuzhou Ciming Aoya Health Management Co., Ltd. Controlled by the actual-controller Fuzhou Changle District Meici Health Management Co., Ltd. Controlled by the actual-controller Guangdong Meiciaoya Health Management Co., Ltd. Controlled by the actual-controller Guangzhou Huadu District Meinian Onehealth Management Controlled by the actual-controller Co., Ltd. Guangzhou Meinian Onehealth Hospital Management Co., Controlled by the actual-controller Ltd. Guangzhou Meiyi Medical Technology Co., Ltd. Controlled by the actual-controller Guangzhou Meizhao Health Management Co., Ltd. Controlled by the actual-controller Guangzhou Zengcheng Meinian Health Management Co., Controlled by the actual-controller Ltd. Haining Meinian Health Checkup Center Co., Ltd. Controlled by the actual-controller Huangshan Meinian Onehealth Consulting Co., Ltd. Controlled by the actual-controller Jilin Changyi District Meinian Onehealth Technology Controlled by the actual-controller Management Co., Ltd. Jinan Meinian Onehealth Technology Co., Ltd. Controlled by the actual-controller Detective Gene Technology (Beijing) Co., Ltd. Controlled by the actual-controller

203

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Relationship of other related parties Name of other related parties with the Company Jinjiang Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller Kunming Meizhao Health Management Co., Ltd. Controlled by the actual-controller Maanshan Meinian Onehealth Consulting Co., Ltd. Controlled by the actual-controller Meizhi Health Management (Beijing) Co., Ltd. Controlled by the actual-controller Nanchang Meiwei Dental Outpatient Co., Ltd. Controlled by the actual-controller Nanjing Meilu Outpatient Co., Ltd. Controlled by the actual-controller Nanjing Meiyi Outpatient Co., Ltd. Controlled by the actual-controller Putian Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller Qingdao Meiweile Medical Management Co., Ltd. Controlled by the actual-controller Xiamen Ciming Health Management Co., Ltd. Controlled by the actual-controller Xiamen Yincheng Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller Shandong Meiming Aoya Health Consulting 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 Shanghai Jiuyi Information Technology Co., Ltd. Controlled by the actual-controller Shanghai Meikai Outpatient Co., Ltd. Controlled by the actual-controller Shanghai Meizhao Wuyuan Outpatient Co., Ltd. Controlled by the actual-controller Shanghai Tianyi Hongfang Enterprise Management Co., Ltd. Controlled by the actual-controller Shanghai Zhongwei Anjian Venture Capital Management Controlled by the actual-controller Co., Ltd. Shaoxing Meinian Outpatient Co., Ltd. Controlled by the actual-controller Shaoxing Meizhao Out-patient Medical Co., Ltd. Controlled by the actual-controller Shenzhen Meizhao Health Management Co., Ltd. Controlled by the actual-controller Shenzhen Aoya Health Management Co., Ltd. Controlled by the actual-controller Shenzhen Meiyang Health Management Co., Ltd. Controlled by the actual-controller Shenzhen Yierkang Health Management Co., Ltd. Controlled by the actual-controller Shenyang Aoya Hospital Co., Ltd. Controlled by the actual-controller Taizhou Meizhao Health Checkup Center (general Controlled by the actual-controller partnership) Beijing Standard Soft Information Technology Co., Ltd. Controlled by the actual-controller Tianjin Binhai New Area Ciai Outpatient Co., Ltd. Controlled by the actual-controller Tianjin Meiweile Health Management Co., Ltd. Controlled by the actual-controller Tianjin Heping District Meinian Meijia Health Management Controlled by the actual-controller Co., Ltd. Tonglu Meinian Medical Examination Center Co., Ltd. Controlled by the actual-controller

204

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Relationship of other related parties Name of other related parties with the Company Wuxi Meizhao Outpatient Co., Ltd. Controlled by the actual-controller Wuhan Meinian Onehealth Technology Management Co., Controlled by the actual-controller Ltd. Xi'an Meizhao Health Management Co., Ltd. Controlled by the actual-controller Yangzhou Meihao Health Management Co., Ltd. Controlled by the actual-controller Yunnan Ciming Health Service Co., Ltd. Controlled by the actual-controller Zhangjiagang Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller Changchun Meijian Health Technology Co., Ltd. Controlled by the actual-controller Chongqing Meizhao Hospital Management Co., Ltd. Controlled by the actual-controller Zhuhai Meinian Onehealth & Health Management Co., Ltd. Controlled by the actual-controller Shanghai Bairuisi Enterprise Management Co., Ltd. Controlled by the actual-controller Shanghai Baozhongtang Lushan Traditional Chinese Controlled by the actual-controller Medicine Outpatient Co., Ltd. Shanghai Meiwei Dental Care Management Group Co., Ltd. Controlled by the actual-controller Shanghai Tianyi Hongfang Property Management Co., Ltd. Controlled by the actual-controller Yinchuan Elephant Doctor Internet Hospital Co., Ltd. Controlled by the actual-controller Nantong Meizhao Meinian Health Industry M&A Investment Controlled by the actual-controller Fund (Limited Partnership) Jiaxing Xinwen Yufu Equity Investment Partnership (Limited Controlled by the actual-controller Partnership) Shanghai Jianyi Investment Center (Limited Partnership) Controlled by the actual-controller Shenzhen Honghui Investment Co., Ltd. Controlled by the actual-controller Ningbo Henghe Dental Medical Management Service Co., Controlled by the actual-controller Ltd. Shanghai Baozhongtang Chinese Medicine Outpatient Controlled by the actual-controller Department Co., Ltd. Zhengzhou Meizhao Health Medical Management Co., Ltd. Controlled by the actual-controller Wuhan Minsheng Eye, Ear, Nose and Throat Specialist Controlled by the actual-controller Hospital Co., Ltd. Beijing Tianyi Hongfang Investment Management Co., Ltd. Controlled by the actual-controller Nan'an Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller Houma Meinian Onehealth Management Co., Ltd. Controlled by the actual-controller Zhengzhou Meijian Health Management Co., Ltd. Controlled by the actual-controller Actual-controller holds office in the Beijing Yinxin Changyuan Technology Co., Ltd. company Actual-controller holds office in the Hangzhou Haozhuo You Medical Data Technology Co., Ltd. company Actual-controller holds office in the Zhongguancun Meinian Health Industry Research Institute institution Actual controlled the company from Shanghai Elephant Medical Technology Co., Ltd. January to June 2018. Subsidiary

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Relationship of other related parties Name of other related parties with the Company company from July to December 2018 Controlled by the actual-controller Zhejiang Meizhao Medical Investment Management Co., Ltd. from January to November 2018. Non-related party in December 2018 Controlled by the actual-controller Nanjing Meizhao Health Management Co., Ltd. from January to November 2018. Non-related party in December 2018 The actual controller significantly Wuhan Meizhao Health Management Co., Ltd. affects the company The actual controller significantly Beijing Wandong Medical Technology Co., Ltd. affects the company The actual controller significantly Huaihua Meinian Onehealth Medical Service Co., Ltd. affects the company The actual controller significantly Hangzhou Yuanzhi Medical Equipment Co., Ltd. affects the company Qingdao Meinian Health Technology Health Management The actual controller significantly Co., Ltd. affects the company Company controlled by directors of Beijing Ciji Network Technology Co., Ltd. important subsidiaries Chongqing Banan Ciming Comprehensive Outpatient Co., Key management personnel relatives Ltd. hold office in the company Key manager holds office in the Shandong Wanshu Trading Co., Ltd. company Key manager holds office in the Chengdu Weiyin Information Technology Co., Ltd. company Key manager holds office in the Zhongshan Perfect Food Co., Ltd. company Key manager holds office in the Hangzhou Kangxi Health Management Consulting Co., Ltd. company Key manager holds office in the Hangzhou Yidian Information Technology Co., Ltd. company Key manager holds office in the Lead Technology Co., Ltd. company Shanghai Jiaotong University Shanghai Institute of Key manager holds office in the Advanced Finance company Key manager holds office in the Shanghai Weiyin Information Technology Co., Ltd. company Key manager holds office in the Tongyi Petroleum Chemical Co., Ltd. company Key manager holds office in the Perfect (China) Co., Ltd. company Key manager holds office in the Xuhui Group Co., Ltd. company Key manager holds office in the Xi'an Yinggu Network Technology Co., Ltd. company Key manager holds office in the Deyang Weile Xinqiao Dental Outpatient Co., Ltd. company China Europe International Business School Education Key manager holds office in the Development Foundation company Key manager holds office in the Beijing Xinglin Kangyun Information Technology Co., Ltd. company Shanghai Hansen Enterprise Management Consulting Co., Key manager holds office in the Ltd. company

206

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Relationship of other related parties Name of other related parties with the Company Key management personnel relatives Chongqing Ciming Aoya Health Management Co., Ltd. hold office in the company Baoshan Meinian Onehealth Examination Center Co., Ltd. Associated enterprise Zhangzhou Meinian Onehealth Management Co., Ltd. Associated enterprise Dalian pulan Meinian Comprehensive Health Outpatient Associated enterprise Co., Ltd. Dongying Meinian Onehealth Co., Ltd. Associated enterprise Enshi Meinian Onehealth Management Co., Ltd. Associated enterprise Lianjiang Ciming Health Examination Management Co., Ltd. Associated enterprise Fuyang Meinian Onehealth Examination Management Co., Associated enterprise Ltd. Pizhou Ciming Health Examination Management Co., Ltd. Associated enterprise Guyuan Meinian Onehealth Hospital Co., Ltd. Associated enterprise Panzhihua Ciming Health Examination Management Co., Associated enterprise Ltd. Huai'an Ciming Huakang Outpatient Co., Ltd. Associated enterprise Leshan Ciming Health Examination Service Co., Ltd. Associated enterprise Luoyang Meinian Onehealth Technology Co., Ltd. Associated enterprise Shouguang Meinian Onehealth Checkup Management Co., Associated enterprise Ltd. Weihai Guoji Meinian Comprehensive Onehealth Outpatient Associated enterprise Co., Ltd. Wenshan Meinian Onehealth Examination Center Co., Ltd. Associated enterprise Wuxi Ciming Aoya Outpatient Co., Ltd. Associated enterprise Xianning Meinian Onehealth Examination Management Co., Associated enterprise Ltd. Yantai Meinian Onehealth Examination Management Co., Associated enterprise Ltd. Yixing Meinnian Comprehensive Outpatient Co., Ltd. Associated enterprise Mengcheng county Meinian Onehealth Examination Associated enterprise Management Co., Ltd. Jiangsu Huakang Vocational Health Consulting Co., Ltd. Associated enterprise Wuxi Huishan Huakang Supervision Department Outpatient Associated enterprise Co., Ltd. Anshun Ciming Health Examination Management Co., Ltd. Associated enterprise Hangzhou Aidi Kang Medical Testing Center Co., Ltd. and its Other related party subsidiaries Holding more than 5% of the Weifang Century Changhe Economic and Trade Co., Ltd. company's shareholder control the company Holding more than 5% of the Shanghai Zunran Hospital Co., Ltd. company's shareholder control the company

207

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Relationship of other related parties Name of other related parties with the Company Shareholder holding more than 5% of Beijing Century Changhe Technology Group Co., Ltd. the company's shares Kaifeng Meinian Onehealth Examination Management Co., Associated Enterprise in 2017, Ltd. Subsidiaries in 2018 Associated Enterprise in 2017, Heze Meinian Onehealth Examination Management Co., Ltd. Subsidiaries in 2018 Shareholder of Shandong Ciming Wang Shifang Health Checkup Management Co., Ltd. 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 Beijing Ciji Network Technology Outgoing examination fee, 27,669,866.96 14,726,890.97 Co., Ltd. business cooperation fee Beijing Wandong Medical Purchasing equipment 20,651,260.00 5,095,600.00 Technology Co., Ltd. Beijing Wandong Medical Equipment warranty 1,010,000.00 Technology Co., Ltd. Hangzhou Aidi Kang Medical Testing Center Co., Ltd. and its Outgoing examination fee 16,047,681.76 subsidiaries Shenzhen Yierkang Health Outsourced physical 15,432,464.28 Management Co., Ltd. examination fee Guangzhou Meiyi Medical Outsourced physical 15,207,433.82 15,184,018.20 Technology Co., Ltd. examination fee Xiamen Ciming Health Outsourced physical 10,638,894.74 3,510,565.80 Management Co., Ltd. examination fee Chengdu Jinniu Meinian Outsourced physical Onehealth Management 8,176,966.71 examination fee Consulting Co., Ltd. Zhengzhou Meijian Health Outsourced physical 8,006,612.85 Management Co., Ltd. examination fee Outsourced physical Nanjing Meiyi Outpatient Co., Ltd. 6,561,984.80 examination fee Shandong Wanshu Trading Co., Purchasing equipment 5,973,375.00 Ltd. Shanghai Elephant Medical Remote film reading service 4,697,300.14 7,498,602.05 Health Technology Co., Ltd. Shanghai Weiyin Information Technical service fee 3,575,668.93 Technology Co., Ltd. Xi'an Yinggu Network Technology Procurement of intangible 3,465,866.60 480,000.00 Co., Ltd. assets Outsourced physical Shenyang Aoya Hospital Co., Ltd. 3,433,179.70 examination fee Chengdu Meizhao Outpatient Co., Outsourced physical 2,234,737.50 Ltd. examination fee Chongqing Ciming Aoya Health Outsourced physical 2,133,962.81 Management Co., Ltd. examination fee

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Related party Related party transactions Current year Prior year Yantai Meinian Onehealth Outsourced physical Examination Management Co., 1,570,383.16 149,637.10 examination fee Ltd. Yinchuan Elephant Doctor Internet Remote film reading service 1,200,818.40 Hospital Co., Ltd. Zhuhai Meinian Onehealth & Outsourced physical 1,104,430.37 458,958.01 Health Management Co., Ltd. examination fee Chengdu Wuhou Meinian Outsourced physical 943,959.60 Onehealth Outpatient Co., Ltd. examination fee Taizhou Meizhao Health Checkup Outsourced physical 808,252.25 Center (general partnership) examination fee Maanshan Meinian Onehealth Outsourced physical 778,413.65 232,246.05 Consulting Co., Ltd. examination fee Kaifeng Meinian Onehealth Outsourced physical Examination Management Co., 710,992.58 98,629.50 examination fee Ltd. Shanghai Elephant Medical Remote film reading service 703,749.00 Technology Co., Ltd. Wuxi Huishan Huakang Supervision Department Labor service fee 680,000.00 Outpatient Co., Ltd. Zhongguancun Meinian Health Consultation service 639,326.00 Industry Research Institute Luoyang Meinian Onehealth Outsourced physical 594,240.83 383,736.30 Technology Co., Ltd. examination fee Shenzhen Meiyang Health Outsourced physical 577,572.40 Management Co., Ltd. examination fee Beijing Xinglin Kangyun Consultation service 540,000.00 Information Technology Co., Ltd. Fuyang Meinian Onehealth Outsourced physical Examination Management Co., 490,370.40 examination fee Ltd. Shenzhen Meizhao Health Outsourced physical 482,189.60 2,830,188.68 Management Co., Ltd. examination fee Shanghai Meiwei Dental Care Technical service fee 458,141.50 Management Group Co., Ltd. Weihai Guoji Meinian Outsourced physical Comprehensive Onehealth 388,632.80 126,471.00 examination fee Outpatient Co., Ltd. Hangzhou Yidian Information Procurement of commodities 386,000.00 200,000.00 Technology Co., Ltd. Dongguan Humen Meinian Outsourced physical 381,130.36 Onehealth Outpatient Co., Ltd. examination fee Shanghai Haozhuo Data Service Outgoing examination fee, 323,628.59 Co., Ltd. consultation service Qingdao Meinian Health Outsourced physical Technology Health Management 230,358.75 examination fee Co., Ltd. Mengcheng county Meinian Outsourced physical Onehealth Examination 223,543.90 examination fee Management Co., Ltd. Wuhan Meinian Onehealth Outsourced physical 187,593.75 Technology Management Co., Ltd. examination fee Yixing Meinnian Comprehensive Outsourced physical 170,145.25 Outpatient Co., Ltd. examination fee 209

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Related party Related party transactions Current year Prior year Shanghai Baozhongtang Lushan Traditional Chinese Medicine Procurement of commodities 160,000.00 Outpatient Co., Ltd. Dongying Meinian Onehealth Co., Outsourced physical 144,517.75 142,013.25 Ltd. examination fee Shenzhen Honghui Investment Meeting affair charge 103,369.00 Co., Ltd. Heze Meinian Onehealth Outsourced physical Examination Management Co., 76,366.25 167,982.10 examination fee Ltd. Wuhan Meizhao Health Outsourced physical 62,030.43 Management Co., Ltd. examination fee Baoshan Meinian Onehealth Outsourced physical 50,311.50 Examination Center Co., Ltd. examination fee Shanghai Hansen Enterprise Consultation service 46,872.00 Management Consulting Co., Ltd. Zhengzhou Meizhao Health Outsourced physical 39,774.00 Medical Management Co., Ltd. examination fee Shanghai Jiuyi Information Consultation service 33,225.00 Technology Co., Ltd. Chongqing Banan Ciming Outsourced physical Comprehensive Outpatient Co., 32,490.40 examination fee Ltd. Guangzhou Meinian Onehealth Outsourced physical 19,488.60 Hospital Management Co., Ltd. examination fee Nanchang Meiwei Dental Outgoing examination fee 18,681.20 Outpatient Co., Ltd. Shaoxing Meizhao Out-patient Outsourced physical 18,318.00 Medical Co., Ltd. examination fee Guangzhou Meizhao Health Outsourced physical 6,666.00 1,415,094.34 Management Co., Ltd. examination fee Shanghai Baozhongtang Chinese Medicine Outpatient Department Procurement of commodities 2,739.75 39,587.28 Co., Ltd. Foshan Wanda Meizhao Health Outsourced physical 1,401.00 1,415,094.34 Management Co., Ltd. examination fee Nanjing Meizhao Health Service income 1,415,094.34 Management Co., Ltd. Shaoxing Meizhao Out-patient Service income 1,415,094.34 Medical Co., Ltd. Wuxi Meizhao Outpatient Co., Ltd. Service income 1,415,094.34 Zhejiang Meizhao Medical Service income 1,415,094.34 Investment Management Co., Ltd. Wuhan Minsheng Eye, Ear, Nose Outsourced physical and Throat Specialist Hospital 10,299.79 examination fee Co., Ltd. ② Sales of good / provision of labor services Related party Related party transactions Current year Prior year Nantong Meizhao Meinian Health Investment consultant income, Industry M&A Investment Fund 9,050,513.71 investment dividends (Limited Partnership) Chengdu Jinniu Meinian Medical examination income, 7,755,218.27 Onehealth Management professional technical service 210

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Related party Related party transactions Current year Prior year Consulting Co., Ltd. fee income, financial leasing income, consulting service fee income Shanghai Jianyi Investment Investment consultant income, 7,569,444.45 4,580,712.79 Center (Limited Partnership) investment dividends Detective Gene Technology Equipment rental income, 4,806,499.81 (Beijing) Co., Ltd. reagent supplies sales revenue Medical examination income, Shenzhen Yierkang Health financial rental income, 4,431,350.04 Management Co., Ltd. consulting service fee income, genetic testing income Jiaxing Xinwen Yufu Equity Investment Partnership (Limited Investment consultant income 3,755,068.49 Partnership) Medical examination income, Chongqing Ciming Aoya Health financial rental income, 3,838,617.67 342,290.38 Management Co., Ltd. consulting service fee income, genetic testing income Medical examination income, Wuxi Ciming Aoya Outpatient Co., financial rental income, 3,370,054.62 242,897.27 Ltd. consulting service fee income Beijing Ciji Network Technology Medical examination income 2,787,748.98 4,822,287.96 Co., Ltd. Medical examination income, Guangzhou Meiyi Medical financial rental income, 2,613,710.64 4,774,145.53 Technology Co., Ltd. consulting service fee income, genetic testing income Medical examination income, Qingdao Meinian Health professional technical service Technology Health Management fee income, financial leasing 2,187,614.16 97,961.00 Co., Ltd. income, consulting service fee income, genetic testing income Medical examination income, professional technical service Guangzhou Zengcheng Meinian fee income, financial leasing 1,873,850.31 Health Management Co., Ltd. income, consulting service fee income, genetic testing income Medical examination income, Yantai Meinian Onehealth professional technical service Examination Management Co., fee income, financial leasing 1,787,806.47 45,042.25 Ltd. income, consulting service fee income, genetic testing income Medical examination income, professional technical service Xiamen Ciming Health fee income, consulting service 1,702,617.72 14,992.50 Management Co., Ltd. fee income, genetic testing income Medical examination income, Wuhan Meinian Onehealth professional technical service Technology Management Co., fee income, financial leasing 1,617,577.72 Ltd. income, consulting service fee income Shaoxing Meinian Outpatient Co., Professional technical service 1,587,654.99 Ltd. fee income, financial leasing

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Related party Related party transactions Current year Prior year income, consulting service fee income Chongqing Meizhao Hospital Professional technical service 1,500,000.00 Management Co., Ltd. fee income Medical examination income, professional technical service Zhuhai Meinian Onehealth & fee income, financial leasing 1,445,040.09 1,081,713.73 Health Management Co., Ltd. income, consulting service fee income, genetic testing income Medical examination income, professional technical service Chengdu Wuhou Meinian fee income, financial leasing 1,425,317.38 Onehealth Outpatient Co., Ltd. income, consulting service fee income, genetic testing income Chengdu Meizhao Outpatient Consulting service fee income, 1,420,044.59 Co., Ltd. genetic testing income Franchise fee income, finance Shandong Meiming Aoya Health lease income, consulting 1,413,124.40 Consulting Co., Ltd. service fee income Medical examination income, Taizhou Meizhao Health Checkup financial rental income, 1,406,665.04 Center (general partnership) consulting service fee income, genetic testing income Medical examination income, Guangzhou Huadu District professional technical service Meinian Onehealth Management fee income, financial leasing 1,300,575.57 Co., Ltd. income, consulting service fee income Professional technical service Dalian pulan Meinian fee income, financial leasing Comprehensive Health Outpatient 1,297,147.63 income, consulting service fee Co., Ltd. income, genetic testing income Professional technical service Baoshan Meinian Onehealth fee income, financial leasing 1,278,826.01 Examination Center Co., Ltd. income, consulting service fee income, genetic testing income Professional technical service Putian Meinian Onehealth fee income, financial leasing 1,263,361.05 Management Co., Ltd. income, consulting service fee income Medical examination income, Yixing Meinnian Comprehensive professional technical service 1,236,888.13 Outpatient Co., Ltd. fee income, genetic testing income Medical examination income, Chengdu Meinian Onehealth professional technical service Center Onehealth Outpatient Co., fee income, financial leasing 1,230,451.20 Ltd. income, consulting service fee income, genetic testing income Professional technical service Haining Meinian Health Checkup fee income, consulting service 1,228,830.66 Center Co., Ltd. fee income, software service fee income Fuyang Meinian Onehealth Medical examination income, 1,187,167.57 Examination Management Co., professional technical service

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Related party Related party transactions Current year Prior year Ltd. fee income, financial leasing income, consulting service fee income, genetic testing income Professional technical service Wenshan Meinian Onehealth fee income, financial leasing 1,171,041.23 Examination Center Co., Ltd. income, consulting service fee income, genetic testing income Professional technical service Shanghai Meikai Outpatient Co., fee income, financial leasing 1,149,879.90 Ltd. income, consulting service fee income Medical examination income, professional technical service Jinjiang Meinian Onehealth fee income, financial leasing 1,040,994.91 Management Co., Ltd. income, consulting service fee income Medical examination income, professional technical service Dongguan Humen Meinian fee income, financial leasing 1,015,019.45 Onehealth Outpatient Co., Ltd. income, consulting service fee income, genetic testing income Professional technical service Shenzhen Meiyang Health fee income, financial leasing 963,980.99 Management Co., Ltd. income, consulting service fee income, genetic testing income Professional technical service Nan'an Meinian Onehealth fee income, financial leasing 904,662.83 Management Co., Ltd. income, consulting service fee income, genetic testing income Medical examination income, franchise fee income, financing Leshan Ciming Health lease income, consulting 895,225.08 Examination Service Co., Ltd. service fee income, genetic testing income Professional technical service fee income, financial leasing Nanjing Meilu Outpatient Co., Ltd. 865,686.42 income, consulting service fee income Professional technical service Shenzhen Aoya Health fee income, financial leasing 842,574.89 2,672,163.46 Management Co., Ltd. income, consulting service fee income Professional technical service Enshi Meinian Onehealth fee income, financial leasing 835,058.34 Management Co., Ltd. income, consulting service fee income, genetic testing income Medical examination income, professional technical service Maanshan Meinian Onehealth fee income, financial leasing 827,047.00 165,348.06 Consulting Co., Ltd. income, consulting service fee income, genetic testing income Shenyang Aoya Hospital Co., Ltd. Medical examination income 775,128.58 Xianning Meinian Onehealth Professional technical service 772,843.01 Examination Management Co., fee income, financial leasing

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Related party Related party transactions Current year Prior year Ltd. income, consulting service fee income Professional technical service Dongying Meinian Onehealth Co., fee income, financial leasing 765,450.62 212,972.17 Ltd. income, consulting service fee income Shanghai Haozhuo Data Service Service income, medical 749,648.00 3,251,418.45 Co., Ltd. examination income Medical examination income, professional technical service Guangzhou Meinian Onehealth fee income, financial leasing 740,633.01 Hospital Management Co., Ltd. income, consulting service fee income Professional technical service Xiamen Yincheng Meinian fee income, consulting service 730,000.00 Onehealth Management Co., Ltd. fee income Professional technical service Dongguan Changan Meinian fee income, software service 700,000.00 Health Management Co., Ltd. fee income Professional technical service Fuzhou Changle District Meici fee income, software service 700,000.00 Health Management Co., Ltd. fee income Professional technical service Guyuan Meinian Onehealth fee income, software service 700,000.00 Hospital Co., Ltd. fee income Professional technical service Houma Meinian Onehealth fee income, software service 700,000.00 Management Co., Ltd. fee income Professional technical service Shouguang Meinian Onehealth fee income, software service 700,000.00 Checkup Management Co., Ltd. fee income Professional technical service Tonglu Meinian Medical fee income, software service 700,000.00 Examination Center Co., Ltd. fee income Professional technical service Yangzhou Meihao Health fee income, software service 700,000.00 Management Co., Ltd. fee income Professional technical service Zhangjiagang Meinian Onehealth fee income, software service 700,000.00 Management Co., Ltd. fee income Huangshan Meinian Onehealth Consulting service fee income, 700,000.00 Consulting Co., Ltd. software service fee income Medical examination income, Guangzhou Meizhao Health financial rental income, 658,590.83 Management Co., Ltd. consulting service fee income, genetic testing income Financial leasing income, Nanjing Meiyi Outpatient Co., Ltd. consulting service fee income, 594,585.99 genetic testing income Professional technical service Jinan Meinian Onehealth fee income, financial leasing 555,970.19 Technology Co., Ltd. income, consulting service fee income

214

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Related party Related party transactions Current year Prior year Jilin Changyi District Meinian Financial leasing income, Onehealth Technology consulting service fee income, 521,500.66 Management Co., Ltd. genetic testing income Professional technical service Zhangzhou Meinian Onehealth fee income, remote film 500,000.00 Management Co., Ltd. reading service income Fuzhou Ciming Aoya Health Consulting service fee income 495,000.00 Management Co., Ltd. Chongqing Banan Ciming Comprehensive Outpatient Co., Genetic testing income 476,896.14 Ltd. Professional technical service Tianjin Heping District Meinian fee income, financial leasing Meijia Health Management Co., 462,643.26 income, consulting service fee Ltd. income Medical examination income, Shenzhen Meizhao Health financial rental income, 453,802.06 Management Co., Ltd. consulting service fee income Medical examination income, Weihai Guoji Meinian professional technical service Comprehensive Onehealth fee income, consulting service 430,582.62 86,522.82 Outpatient Co., Ltd. fee income, genetic testing income Heze Meinian Onehealth Financial leasing income, Examination Management Co., consulting service fee income, 410,738.37 114,255.19 Ltd. genetic testing income Professional technical service Changchun Meijian Health fee income, consulting service 387,195.90 Technology Co., Ltd. fee income, genetic testing income Yunnan Ciming Health Service Financial lease income, 385,032.25 Co., Ltd. consulting service fee income Shanghai Weiyin Information Medical examination income 354,922.20 Technology Co., Ltd. Zhengzhou Meijian Health Financial lease income, 349,879.74 12,971.69 Management Co., Ltd. consulting service fee income Kaifeng Meinian Onehealth Medical examination income, Examination Management Co., financial lease income, 308,321.22 321,849.24 Ltd. consulting service income Lianjiang Ciming Health Examination Management Co., Medical examination income 301,475.00 Ltd. Tianjin Binhai New Area Ciai Financial lease income, 287,995.32 Outpatient Co., Ltd. consulting service income Medical examination income, Shaoxing Meizhao Out-patient financial leasing income, 279,862.89 Medical Co., Ltd. consulting service income, genetic testing income Zhengzhou Meizhao Health Financial lease income, 236,374.52 Medical Management Co., Ltd. consulting service income Financial leasing income, Zhangzhou Meinian Onehealth consulting service income, 233,276.31 Hospital Co., Ltd. genetic testing income Hangzhou Haozhuo You Medical Medical examination income, 223,318.00 Data Technology Co., Ltd. consulting service income

215

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Related party Related party transactions Current year Prior year China Europe International Business School Education Medical examination income 207,574.00 Development Foundation Pizhou Ciming Health Examination Management Co., Medical examination income 182,599.06 Ltd. Wuhan Meizhao Health Medical examination income 145,871.75 Management Co., Ltd. Xuhui Group Co., Ltd. Medical examination income 136,198.00 Foshan Wanda Meizhao Health Financial lease income, 122,628.60 Management Co., Ltd. consulting service income Hangzhou Aidi Kang Medical Testing Center Co., Ltd. and its Medical examination income 115,492.90 subsidiaries Shanghai Meizhao Wuyuan Financial lease income, 81,397.97 Outpatient Co., Ltd. consulting service income Beijing Yinxin Changyuan Medical examination income 73,512.50 Technology Co., Ltd. Shanghai Zhongwei Anjian Venture Capital Management Co., Medical examination income 49,136.00 Ltd. Perfect (China) Co., Ltd. Medical examination income 44,461.50 8,098.00 Anshun Ciming Health Financial lease income, Examination Management Co., 39,573.98 consulting service income Ltd. Panzhihua Ciming Health Examination Management Co., Medical examination income 31,386.79 Ltd. Qingdao Meiweile Medical Medical examination income 30,496.00 Management Co., Ltd. Shanghai Jiuyi Information Medical examination income 28,762.00 Technology Co., Ltd. Beijing Tianyi Hongfang Medical examination income 24,198.00 Investment Management Co., Ltd. Guangdong Meiciaoya Health Financial lease income, 19,954.93 Management Co., Ltd. consulting service income Huai'an Ciming Huakang Consulting service income, 18,859.10 9,935.46 Outpatient Co., Ltd. genetic testing income Hangzhou Kangxi Health Medical examination income 18,543.25 Management Consulting Co., Ltd. Tongyi Petroleum Chemical Co., Medical examination income 16,053.60 Ltd. Lead Technology Co., Ltd. Medical examination income 15,911.00 Wuxi Meizhao Outpatient Co., Genetic testing income 15,910.38 Ltd. Hangzhou Yuanzhi Medical Medical examination income 12,866.00 Equipment Co., Ltd. Ningbo Henghe Dental Medical Medical examination income 12,069.00 Management Service Co., Ltd. Hangzhou Yidian Information Medical examination income 11,665.43 Technology Co., Ltd. Chengdu Weiyin Information Medical examination income 10,213.00 Technology Co., Ltd. 216

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Related party Related party transactions Current year Prior year Luoyang Meinian Onehealth Medical examination income 7,428.27 47,248.00 Technology Co., Ltd. Zhongshan Perfect Food Co., Ltd. Medical examination income 14,658.75

(2) Lease ① The Company as the lessor Amount of finance lease transaction Name of lessor recognized this year Chengdu Meizhao Outpatient Co., Ltd. 19,360,000.00 Shenyang Aoya Hospital Co., Ltd. 19,184,000.00 Shenzhen Meizhao Health Management Co., Ltd. 19,030,000.00 Shandong Meiming Aoya Health Consulting Co., Ltd. 16,900,000.00 Guangzhou Meizhao Health Management Co., Ltd. 14,780,000.00 Putian Meinian Onehealth Management Co., Ltd. 14,609,000.00 Shanghai Meikai Outpatient Co., Ltd. 13,850,000.00 Qingdao Meinian Health Technology Health Management 13,089,000.00 Co., Ltd. Dongguan Humen Meinian Onehealth Outpatient Co., 12,690,000.00 Ltd. Dalian pulan Meinian Comprehensive Health Outpatient 10,736,000.00 Co., Ltd. Yunnan Ciming Health Service Co., Ltd. 10,724,000.00 Wenshan Meinian Onehealth Examination Center Co., 10,026,000.00 Ltd. Xianning Meinian Onehealth Examination Management 10,010,000.00 Co., Ltd. Baoshan Meinian Onehealth Examination Center Co., 9,771,000.00 Ltd. Chongqing Meizhao Hospital Management Co., Ltd. 9,300,000.00 Shaoxing Meizhao Out-patient Medical Co., Ltd. 9,300,000.00 Xi'an Meizhao Health Management Co., Ltd. 9,000,000.00 Chengdu Jinniu Meinian Onehealth Management 8,990,000.00 Consulting Co., Ltd. Kunming Meizhao Health Management Co., Ltd. 8,910,000.00 Jilin Changyi District Meinian Onehealth Technology 7,822,000.00 Management Co., Ltd. Guangzhou Huadu District Meinian Onehealth 7,530,000.00 Management Co., Ltd. Guangzhou Zengcheng Meinian Health Management 7,530,000.00 Co., Ltd. Shenzhen Meiyang Health Management Co., Ltd. 7,205,000.00 Shaoxing Meinian Outpatient Co., Ltd. 7,030,000.00 Zhangzhou Meinian Onehealth Hospital Co., Ltd. 6,942,000.00

217

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Amount of finance lease transaction Name of lessor recognized this year Changchun Meijian Health Technology Co., Ltd. 6,840,000.00 Enshi Meinian Onehealth Management Co., Ltd. 6,603,000.00 Jinan Meinian Onehealth Technology Co., Ltd. 6,530,000.00 Zhengzhou Meizhao Health Medical Management Co., 6,500,000.00 Ltd. Chengdu Wuhou Meinian Onehealth Outpatient Co., Ltd. 5,460,000.00 Chengdu Meinian Onehealth Center Onehealth 5,360,000.00 Outpatient Co., Ltd. Jinjiang Meinian Onehealth Management Co., Ltd. 5,321,000.00 Nan'an Meinian Onehealth Management Co., Ltd. 5,299,000.00 Tianjin Binhai New Area Ciai Outpatient Co., Ltd. 5,274,000.00 Haining Meinian Health Checkup Center Co., Ltd. 4,980,000.00 Fuyang Meinian Onehealth Examination Management 4,652,000.00 Co., Ltd. Taizhou Meizhao Health Checkup Center (general 4,560,000.00 partnership) Shanghai Meizhao Wuyuan Outpatient Co., Ltd. 4,400,000.00 Anshun Ciming Health Examination Management Co., 4,400,000.00 Ltd. Foshan Wanda Meizhao Health Management Co., Ltd. 3,780,000.00 Wuhan Meizhao Health Management Co., Ltd. 3,488,700.00 Nanjing Meilu Outpatient Co., Ltd. 3,090,000.00 Tianjin Heping District Meinian Meijia Health Management 2,618,000.00 Co., Ltd. Leshan Ciming Health Examination Service Co., Ltd. 2,320,000.00 Shenzhen Aoya Health Management Co., Ltd. 2,288,000.00 Guangzhou Meinian Onehealth Hospital Management 2,080,000.00 Co., Ltd. Guangdong Meiciaoya Health Management Co., Ltd. 1,740,000.00 Zhengzhou Meijian Health Management Co., Ltd. 1,590,000.00 Wuhan Meinian Onehealth Technology Management Co., 1,040,000.00 Ltd. Heze Meinian Onehealth Examination Management Co., 874,000.00 Ltd. Shenzhen Yierkang Health Management Co., Ltd. 340,000.00

② The Company as the lessor Category of leased Current year Lease Prior year lease Name of lessee assets fee fee Detective Gene Technology Houses 1,259,816.36 (Beijing) Co., Ltd. Meizhi Health Management Houses 1,259,816.36 (Beijing) Co., Ltd.

218

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Total 2,519,632.72

③ The Company as the lessee Category of leased Current year Lease Prior year lease Name of lessor assets fee fee Shanghai Bairuisi Enterprise Houses 5,102,532.00 5,178,341.00 Management Co., Ltd. Shanghai Tianyi Hongfang Houses 9,226,630.95 4,240,184.04 Enterprise Management Co., Ltd. Shanghai Tianyi Hongfang Property Houses 3,720,291.85 Management Co., Ltd. Beijing Tianyi Hongfang Investment Houses 8,208,309.14 Management Co., Ltd. Total 26,257,763.94 9,418,525.04

(3) Guarantee ① The Company acts as a Guarantor Whether the Guaranteed Guarantee Start date End date guarantee has amount been completed Shanghai Meixin Financial 294,000,000.00 2016-8-31 2023-11-19 No Leasing Co., Ltd. (Note 1) Shanghai Meixin Financial 300,000,000.00 2016-11-11 2021-12-29 No Leasing Co., Ltd. (Note 2) Shanghai Meixin Financial 160,000,000.00 2017-5-11 2022-5-10 No Leasing Co., Ltd. (Note 3) Shanghai Meixin Financial 150,000,000.00 2017-9-7 2022-9-7 No Leasing Co., Ltd. (Note 4) Shanghai Meixin Financial 30,000,000.00 2018-2-5 2019-2-5 No Leasing Co., Ltd. (Note 5) Shanghai Meixin Financial 200,000,000.00 2018-4-13 2023-5-17 No Leasing Co., Ltd. (Note 6) Shanghai Meixin Financial 200,000,000.00 2018-7-25 2021-12-27 No Leasing Co., Ltd. (Note 7) Shanghai Meixin Financial 100,000,000.00 2018-8-22 2019-11-23 No Leasing Co., Ltd. (Note 8) Meinian Onehealth (Note 9) 100,000,000.00 2017-1-17 2019-1-16 No Meinian Onehealth (Note 10) 300,000,000.00 2017-1-20 2020-3-8 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) 100,000,000.00 2017-7-25 2019-1-25 Yes Meinian Onehealth (Note 14) 1,200,000,000.00 2017-9-22 2020-9-22 No Meinian Onehealth (Note 15) 188,000,000.00 2017-10-31 2022-10-30 No Meinian Onehealth (Note 16) 210,000,000.00 2017-12-21 2019-2-21 No Meinian Onehealth (Note 17) 100,000,000.00 2018-1-11 2023-1-10 No Meinian Onehealth (Note 18) 300,000,000.00 2018-1-11 2023-1-10 No Meinian Onehealth (Note 19) 150,000,000.00 2018-1-26 2021-1-26 No

219

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Whether the Guaranteed Guarantee Start date End date guarantee has amount been completed Meinian Onehealth (Note 20) 200,000,000.00 2018-3-26 2019-1-29 No Meinian Onehealth (Note 21) 450,000,000.00 2018-4-27 2021-4-27 No Meinian Onehealth (Note 22) 390,000,000.00 2018-5-25 2025-5-25 No Meinian Onehealth (Note 23) 390,000,000.00 2018-5-25 2025-5-25 No Meinian Onehealth (Note 24) 390,000,000.00 2018-5-25 2025-5-25 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 December 31, 2018 was RMB 272.1992 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 December 29, 2021. The balance of loans as at December 31, 2018 was RMB 211.7934 million. 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 December 31, 2018 was 144.4583 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 December 31, 2018 was RMB 149.3239 million. 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 December 31, 2018 was RMB 28.83 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

220

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 December 31, 2018 was RMB 174.3612 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 December 27, 2021. The balance of the loan as at December 31, 2018 was 90.7064 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 December 31, 2018, the balance of the loan was RMB 95.9615 million. Note 9: 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 December 31, 2018 was RMB 40 million. Note 10: In 2017, 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 200 million, with a maximum insured amount of RMB 300 million. The balance of the loan as at December 31, 2018 was zero. Note 11: In 2017 and 2018, 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 522 million, the maximum insurance amount is RMB 470 million. The balance of the loan as at December 31, 2018 was RMB 350 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 47.5 million. The balance of the loan as at December 31, 2018 was RMB 32.75 million. Note 13: In 2018, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Bank of Communications Shanghai South Shaanxi Road Branch for the loan of RMB 30 million. The maximum insurance amount is RMB 100 million. The balance of the loan as at December 31, 2018 was zero.

221

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Note 14: In 2017 and 2018, 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 1,796.29 million, with a maximum insured amount of RMB 1.2 billion. The balance of the loan as at December 31, 2018 was RMB 1.2 billion. Note 15: In 2017, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to the Ping An Bank Co., Ltd. Shanghai Branch for RMB 188 million, with a maximum insured amount of RMB 188 million. The balance of the loan as at December 31, 2018 was RMB 169.2 million. Note 16: In 2017 and 2018, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Citibank Health (Group) Co., Ltd., to Citibank (China) Co., Ltd. Shanghai Branch for a total loan of RMB 200 million, with a maximum insured amount of RMB 210 million. The balance of the loan as at December 31, 2018 was RMB 100 million. Note 17: In 2018, the Company provided guarantee for the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to the Bank of China Branch of Ping An Bank Co., Ltd. for RMB 100 million. The balance of the loan as at December 31, 2018 was RMB 97.5 million. Note 18: In 2018, the Company provided guarantees for the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to the Ping An Bank Co., Ltd. Shanghai Branch for RMB 300 million. The balance of the loan as at December 31, 2018 was RMB 295.50 million. Note 19: In 2018, the Company provided guarantees to the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Bank of Shanghai co., LTD Shanghai Pudong Branch, to borrow RMB 112.5 million, with a maximum insurance amount of RMB 150 million. The balance of the loan as at December 31, 2018 was RMB 112.5 million. Note 20: In 2018, the Company provided guarantee for the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to Huaxia Bank Co., Ltd. Shanghai Branch to borrow RMB 100 million, and the maximum insurance amount was RMB 200 million. The balance of the loan as at December 31, 2018 was RMB 100 million. Note 21: In 2018, the Company provided guarantee for the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to CITIC Bank Co., Ltd. Shanghai Jing'an Branch to borrow RMB 300 million, the maximum insurance amount was RMB 450 million. The balance of the loan as at December 31, 2018 was RMB 300 million.

222

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Note 22: In 2018, the Company provided guarantees for the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to the Ping An Bank Co., Ltd. Shanghai Branch for a loan of RMB 198.80 million. The balance of the loan as at December 31, 2018 was RMB 179.82 million. Note 23: In 2018, the Company provided guarantee for the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to the Ping An Bank Co., Ltd. Shanghai Branch for a loan of RMB 80 million. The balance of the loan as at December 31, 2018 was RMB 80 million. Note 24: In 2018, the Company provided guarantees for the subsidiary, Meinian Onehealth Industry (Group) Co., Ltd., to the Ping An Bank Co., Ltd. Shanghai Branch for a loan of RMB 81.40 million. As at December 31, 2018, the balance of the loan was RMB 73.26 million. ② The Company acts as a guarantee Whether the Guaranteed Guarantor Start date End date guarantee has amount been completed Hainan Meinian Onehealth 2,000,000.00 2017-9-4 2018-9-3 Yes Hospital Co., Ltd. (Note 1) Sha Qibin (Note 1) 2,000,000.00 2017-9-4 2018-9-3 Yes Liu Xiaofeng (Note 1) 2,000,000.00 2017-9-4 2018-9-3 Yes Xu Zhaorong (Note 2) 5,500,000.00 2017-10-27 2020-10-26 Yes Hainan Meinian Onehealth 1,500,000.00 2017-10-30 2020-10-29 No Hospital Co., Ltd. (Note 3) Sha Qibin (Note 3) 1,500,000.00 2017-10-30 2020-10-29 No Liu Xiaofeng (Note 3) 1,500,000.00 2017-10-30 2020-10-29 No Hainan Meinian Onehealth 1,200,000.00 2017-12-7 2020-12-6 No Hospital Co., Ltd. (Note 4) Sha Qibin (Note 4) 1,200,000.00 2017-12-7 2020-12-6 No Liu Xiaofeng (Note 4) 1,200,000.00 2017-12-7 2020-12-6 No Sha Qibin (Note 5) 19,000,000.00 2018-4-12 2025-4-10 No Liu Xiaofeng (Note 5) 19,000,000.00 2018-4-12 2025-4-10 No Hainan Liushahe Decoration 19000000.00 2018-4-12 2025-4-10 No Engineering Co., Ltd. (Note 5) Xu Zhaorong (Note 6) 5,500,000.00 2018-10-30 2019-10-28 No Ren Liping (Note 6) 5,500,000.00 2018-10-30 2019-10-28 No Li Anhua (Note 7) 3,850,000.00 2016-5-25 2020-5-25 Yes Wang Yunhua (Note 8) 2,000,000.00 2018-6-5 2019-6-5 No Jiaxing SME Guarantee Co., 1,000,000.00 2018-2-1 2019-1-31 No Ltd. (Note 9)

223

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Whether the Guaranteed Guarantor Start date End date guarantee has amount been completed Jiaxing SME Guarantee Co., 1,000,000.00 2018-1-10 2019-1-9 No Ltd. (Note 10) Note 1: In 2017, Haikou Ciming Health Outpatient (General Partnership), a subsidiary of the Company, borrowed RMB 2 million from the China Postal Savings Bank Co., Ltd. Haikou Branch. Shareholders, Sha Qibin and Liu Xiaofeng, and Hainan Meinian Onehealth Hospital Co., Ltd., a subsidiary of the Company, provided joint liability guarantee for the loan, the maximum insurance amount was RMB 2 million. The balance of the loan as at December 31, 2018 was zero. Note 2: In 2017, Wuxi Huakang Outpatient Co., Ltd., a subsidiary of the Company, borrowed RMB 4 million from Agricultural Bank of China Co., Ltd. Wuxi Binhu Branch. The legal representative, Xu Zhaorong, provided guarantees for the loan with a maximum insured amount of RMB 5.5 million. The balance of the loan as at December 31, 2018 was zero. Note 3: In 2017, Haikou Ciming Health Outpatient (General Partnership), a subsidiary of the Company, borrowed RMB 1.5 million from China Post Savings Bank Co., Ltd. Haikou Haiken South 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. As at December 31, 2018, the balance of the loan was RMB 0.9581 million. Note 4: In 2017, Haikou Ciming Health Outpatient (General Partnership), a subsidiary of the Company, borrowed RMB 1.20 million from China Post Savings Bank Co., Ltd. Haikou Haiken South 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 1.2 million. As at December 31, 2018, the balance of the loan was RMB 8.2420 million. Note 5: 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.

224

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 19 million. The balance of loans as at December 31, 2018 was RMB 13.0048 million. Note 6: In 2018, Wuxi Huakang Outpatient Co., Ltd., a subsidiary of the Company, borrowed RMB 4 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 5.5 million. The balance of the loan as at December 31, 2018 was RMB 4 million. Note 7: In 2017, Guangdong Youyi Health Management Co., Ltd., a subsidiary of the Company, borrowed RMB 3.85 million from Bank of China Limited Guangzhou Development Branch. Guaranteed by the shareholder Li Anhua for the loan, the maximum guarantee amount is RMB 3.85 million. The balance of loans as at December 31, 2018 was zero. Note 8: 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 December 31, 2018 was RMB 2 million. Note 9: 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 December 31, 2018 was RMB 1 million. Note 10: 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 December 31, 2018 was RMB 1 million. (4) Remuneration of Key Management Personnel Item Current year Prior year Compensation of Key Management Personnel RMB 14.54 million RMB 11.51 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

225

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Beijing Ciji Network Technology 54,314,489.44 3,037,558.86 Co., Ltd. Detective Gene Technology 7,082,732.51 (Beijing) Co., Ltd. Yantai Meinian Onehealth Examination Management Co., 5,219,118.41 5,419.80 12,146.25 Ltd. Chengdu Jinniu Meinian Onehealth Management 3,384,931.98 Consulting Co., Ltd. Wang Shifang 2,947,943.16 2,947,943.16 2,947,943.16 2,947,943.16 Xiamen Ciming Health 2,425,486.50 300,000.00 Management Co., Ltd. Haining Meinian Health Checkup 1,195,000.00 Center Co., Ltd. Yixing Meinnian Comprehensive 1,005,197.00 Outpatient Co., Ltd. Meizhi Health Management 866,123.75 (Beijing) Co., Ltd. Wuhan Meinian Onehealth Technology Management Co., 769,844.78 Ltd. Xiamen Yincheng Meinian Onehealth Management Co., 730,000.00 Ltd. Dongguan Changan Meinian 700,000.00 Health Management Co., Ltd. Fuzhou Changle District Meici 700,000.00 Health Management Co., Ltd. Guyuan Meinian Onehealth 700,000.00 Hospital Co., Ltd. Huangshan Meinian Onehealth 700,000.00 Consulting Co., Ltd. Shouguang Meinian Onehealth 700,000.00 Checkup Management Co., Ltd. Tonglu Meinian Medical 700,000.00 Examination Center Co., Ltd. Zhangjiagang Meinian Onehealth Management Co., 700,000.00 Ltd. Yangzhou Meihao Health 698,000.00 Management Co., Ltd. Shenzhen Yierkang Health 584,293.26 29,829.75 Management Co., Ltd. Zhangzhou Meinian Onehealth 500,000.00 Management Co., Ltd. Fuzhou Ciming Aoya Health 495,000.00 Management Co., Ltd. Shenzhen Aoya Health 327,269.17 Management Co., Ltd. Luoyang Meinian Onehealth 319,682.67 34,530.45 17,101.50 Technology Co., Ltd.

226

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Panzhihua Ciming Health Examination Management Co., 216,808.30 Ltd. China Europe International Business School Education 202,432.00 Development Foundation Shanghai Haozhuo Data Service 179,378.25 711,916.30 Co., Ltd. Chongqing Banan Ciming Comprehensive Outpatient Co., 178,179.31 Ltd. Perfect (China) Co., Ltd. 130,582.50 28,134.00 73,527.00 Maanshan Meinian Onehealth 113,454.34 8,431.13 28,455.00 Consulting Co., Ltd. Shanghai Elephant Medical 51,600.00 Health Technology Co., Ltd. Shanghai Jiaotong University Shanghai Institute of Advanced 51,000.00 14,960.00 Finance Zhuhai Meinian Onehealth & 43,723.98 134,520.13 Health Management Co., Ltd. Beijing Yinxin Changyuan 31,655.40 432.30 Technology Co., Ltd. Shanghai Zhongwei Anjian Venture Capital Management 30,778.00 Co., Ltd. Shanghai Jiuyi Information 20,702.00 570.00 Technology Co., Ltd. Weifang Century Changhe 19,885.00 5,965.50 Economic and Trade Co., Ltd. Jinjiang Meinian Onehealth 19,782.00 Management Co., Ltd. Beijing Century Changhe 17,200.00 4,886.85 Technology Group Co., Ltd. Lead Technology Co., Ltd. 15,340.00 Beijing Tianyi Hongfang Investment Management Co., 10,344.00 Ltd. Beijing Standard Soft 26,424.00 5,924.40 Information Technology Co., Ltd. Total 89,097,957.71 3,381,102.94 6,989,592.20 2,953,867.56 Advanced to customers Nanjing Meiyi Outpatient Co., 3,011,693.20 Ltd. Xi'an Yinggu Network 238,888.93 Technology Co., Ltd. Beijing Tianyi Hongfang Investment Management Co., 146,390.16 Ltd.

227

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Shanghai Jiuyi Information 130,135.50 Technology Co., Ltd. Xiamen Ciming Health 110,036.11 Management Co., Ltd. Deyang Weile Xinqiao Dental 96,094.11 Outpatient Co., Ltd. Hangzhou Yidian Information 80,000.00 Technology Co., Ltd. Shanghai Meiwei Dental Care 53,831.19 Management Group Co., Ltd. Beijing Ciji Network Technology 6,624,238.03 Co., Ltd. Shanghai Tianyi Hongfang Enterprise Management Co., 14,744.32 Ltd. Total 3,867,069.20 6,638,982.35 Other receivables Jiangsu Huakang Vocational 3,653,727.65 Health Consulting Co., Ltd. Wang Shifang 2,587,300.00 2,587,300.00 2,587,300.00 2,587,300.00 Shanghai Tianyi Hongfang Enterprise Management Co., 1,061,297.37 Ltd. Shanghai Bairuisi Enterprise 232,940.00 232,940.00 Management Co., Ltd. Shanghai Tianyi Hongfang 213,986.09 Property Management Co., Ltd. Xiamen Ciming Health 172,028.00 Management Co., Ltd. Leshan Ciming Health 137,281.95 Examination Service Co., Ltd. Chongqing Ciming Aoya Health 68,155.79 Management Co., Ltd. Shanghai Zunran Hospital Co., 10,000.00 Ltd. Guangdong Meiciaoya Health 811,299.88 Management Co., Ltd. Luoyang Meinian Onehealth 300,000.00 Technology Co., Ltd. Weihai Guoji Meinian Comprehensive Onehealth 300,000.00 Outpatient Co., Ltd. Total 8,136,716.85 2,587,300.00 4,231,539.88 2,587,300.00 Long-term receivables Shenyang Aoya Hospital Co., 18,594,377.00 Ltd. Shenzhen Meizhao Health 18,240,553.00 Management Co., Ltd. Chengdu Meizhao Outpatient 17,887,835.00

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Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Co., Ltd. Shandong Meiming Aoya Health 17,825,538.00 Consulting Co., Ltd. Guangzhou Meizhao Health 13,994,517.00 Management Co., Ltd. Putian Meinian Onehealth 13,754,498.00 Management Co., Ltd. Dongguan Humen Meinian 13,302,748.00 Onehealth Outpatient Co., Ltd. Guangzhou Meiyi Medical 12,919,475.00 17,771,327.00 Technology Co., Ltd. Qingdao Meinian Health Technology Health Management 12,626,896.00 1,888,652.00 Co., Ltd. Shanghai Meikai Outpatient Co., 12,400,028.00 Ltd. Shenzhen Yierkang Health 12,322,905.00 Management Co., Ltd. Chongqing Ciming Aoya Health 10,749,546.00 13,451,780.00 Management Co., Ltd. Dalian pulan Meinian Comprehensive Health 10,641,828.00 Outpatient Co., Ltd. Xianning Meinian Onehealth Examination Management Co., 10,466,035.00 Ltd. Yunnan Ciming Health Service 10,351,975.00 Co., Ltd. Chongqing Meizhao Hospital 9,997,500.00 Management Co., Ltd. Wenshan Meinian Onehealth 9,871,260.00 Examination Center Co., Ltd. Xi'an Meizhao Health 9,540,000.00 Management Co., Ltd. Baoshan Meinian Onehealth 9,521,312.00 Examination Center Co., Ltd. Shaoxing Meizhao Out-patient 9,448,565.00 Medical Co., Ltd. Kunming Meizhao Health 9,444,600.00 Management Co., Ltd. Chengdu Jinniu Meinian Onehealth Management 7,842,517.00 Consulting Co., Ltd. Guangzhou Huadu District Meinian Onehealth Management 7,152,468.00 Co., Ltd. Guangzhou Zengcheng Meinian 7,152,468.00 Health Management Co., Ltd. Zhangzhou Meinian Onehealth 7,108,944.00 Hospital Co., Ltd. Jinan Meinian Onehealth 7,019,641.00 Technology Co., Ltd.

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Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Jilin Changyi District Meinian Onehealth Technology 6,943,249.00 Management Co., Ltd. Shenzhen Meiyang Health 6,843,208.00 Management Co., Ltd. Enshi Meinian Onehealth 6,799,920.00 Management Co., Ltd. Shaoxing Meinian Outpatient 6,773,271.00 Co., Ltd. Zhengzhou Meizhao Health 6,211,136.00 Medical Management Co., Ltd. Changchun Meijian Health 5,980,484.00 Technology Co., Ltd. Chengdu Wuhou Meinian 5,510,029.00 Onehealth Outpatient Co., Ltd. Haining Meinian Health Checkup 5,403,594.00 Center Co., Ltd. Wuxi Ciming Aoya Outpatient 5,381,141.00 6,623,593.00 Co., Ltd. Jinjiang Meinian Onehealth 5,194,454.00 Management Co., Ltd. Nan'an Meinian Onehealth 5,160,147.00 Management Co., Ltd. Chengdu Meinian Onehealth Center Onehealth Outpatient 5,100,829.00 Co., Ltd. Tianjin Binhai New Area Ciai 4,705,600.00 Outpatient Co., Ltd. Shanghai Meizhao Wuyuan 4,678,686.00 Outpatient Co., Ltd. Fuyang Meinian Onehealth Examination Management Co., 4,601,542.00 Ltd. Taizhou Meizhao Health Checkup Center (general 4,322,122.00 partnership) Nanjing Meiyi Outpatient Co., 3,979,589.00 Ltd. Zhuhai Meinian Onehealth & 3,781,807.00 7,982,213.00 Health Management Co., Ltd. Foshan Wanda Meizhao Health 3,561,600.00 Management Co., Ltd. Wuhan Meizhao Health 3,261,934.50 Management Co., Ltd. Zhengzhou Meijian Health 3,243,915.00 2,912,915.00 Management Co., Ltd. Nanjing Meilu Outpatient Co., 3,141,745.00 Ltd. Tianjin Heping District Meinian Meijia Health Management Co., 2,561,421.00 Ltd. Dongying Meinian Onehealth 2,528,349.00 3,697,795.00 Co., Ltd. 230

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Closing balance Opening balance Items Bad debt Bad debt Book balance Book balance provision provision Leshan Ciming Health 2,322,608.00 Examination Service Co., Ltd. Guangzhou Meinian Onehealth 2,062,754.00 Hospital Management Co., Ltd. Guangdong Meiciaoya Health 1,803,190.00 Management Co., Ltd. Shenzhen Aoya Health 1,742,569.00 Management Co., Ltd. Weihai Guoji Meinian Comprehensive Onehealth 1,329,202.00 2,018,330.00 Outpatient Co., Ltd. Wuhan Meinian Onehealth Technology Management Co., 972,400.00 Ltd. Maanshan Meinian Onehealth 586,123.00 1,334,493.00 Consulting Co., Ltd. Huai'an Ciming Huakang 370,414.00 532,312.00 Outpatient Co., Ltd. Heze Meinian Onehealth Examination Management Co., 1,079,101.00 Ltd. Kaifeng Meinian Onehealth Examination Management Co., 3,985,528.00 Ltd. Total 427,037,061.50 63,278,039.00 (2) Payable Items Items Closing balance Opening balance Accounts payable Hangzhou Aidi Kang Medical Testing Center Co., Ltd. and its 23,725,125.19 subsidiaries Beijing Ciji Network Technology 2,070,571.83 Co., Ltd. Shanghai Tianyi Hongfang 2,337,639.21 375,525.30 Enterprise Management Co., Ltd. Shanghai Bairuisi Enterprise 2,124,055.00 425,211.00 Management Co., Ltd. Chengdu Jinniu Meinian Onehealth 2,068,822.87 Management Consulting Co., Ltd. Chongqing Ciming Aoya Health 1,633,146.81 Management Co., Ltd. Yantai Meinian Onehealth 1,214,238.30 128,534.35 Examination Management Co., Ltd. Beijing Wandong Medical 2,147,030.00 Technology Co., Ltd. Zhuhai Meinian Onehealth & Health 1,031,687.82 234,658.58 Management Co., Ltd. Guangzhou Meiyi Medical 923,944.80 106,659.18 Technology Co., Ltd.

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Items Closing balance Opening balance Shanghai Elephant Medical Health 858,777.90 2,430,245.55 Technology Co., Ltd. Luoyang Meinian Onehealth 673,454.93 434,799.60 Technology Co., Ltd. Maanshan Meinian Onehealth 630,490.15 121,507.50 Consulting Co., Ltd. Chengdu Wuhou Meinian 587,103.35 Onehealth Outpatient Co., Ltd. Yinchuan Elephant Doctor Internet 539,792.70 Hospital Co., Ltd. Fuyang Meinian Onehealth 490,370.40 Examination Management Co., Ltd. Shenzhen Meizhao Health 482,189.60 Management Co., Ltd. Weihai Guoji Meinian Comprehensive Onehealth 417,233.55 126,021.00 Outpatient Co., Ltd. Zhengzhou Meijian Health 383,253.75 Management Co., Ltd. Dongguan Humen Meinian 363,427.70 Onehealth Outpatient Co., Ltd. Taizhou Meizhao Health Checkup 332,495.12 Center (general partnership) Mengcheng county Meinian Onehealth Examination 223,543.90 Management Co., Ltd. Qingdao Meinian Health Technology Health Management 206,808.75 Co., Ltd. Shanghai Haozhuo Data Service 192,438.59 Co., Ltd. Yixing Meinnian Comprehensive 170,145.25 Outpatient Co., Ltd. Shanghai Baozhongtang Lushan Traditional Chinese Medicine 160,000.00 Outpatient Co., Ltd. Wuhan Meinian Onehealth 140,563.40 Technology Management Co., Ltd. Shanghai Tianyi Hongfang Property 121,054.31 Management Co., Ltd. Dongying Meinian Onehealth Co., 86,953.50 132,663.25 Ltd. Shandong Wanshu Trading Co., 53,687.50 Ltd. Baoshan Meinian Onehealth 50,311.50 Examination Center Co., Ltd. Wuhan Meizhao Health 49,930.43 Management Co., Ltd. Zhengzhou Meizhao Health 39,774.00 Medical Management Co., Ltd. Chongqing Banan Ciming Comprehensive Outpatient Co., 31,786.45 Ltd. Guangzhou Meinian Onehealth 19,488.60 Hospital Management Co., Ltd. 232

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Closing balance Opening balance Shaoxing Meizhao Out-patient 18,318.00 Medical Co., Ltd. Chengdu Meinian Onehealth Center Onehealth Outpatient Co., 15,903.00 Ltd. Xiamen Ciming Health 3,510,565.80 Management Co., Ltd. Shanghai Meiwei Dental Care 1,646,870.48 Management Group Co., Ltd. Heze Meinian Onehealth 162,702.10 Examination Management Co., Ltd. Kaifeng Meinian Onehealth 93,169.50 Examination Management Co., Ltd. Total 44,468,528.16 12,076,163.19 Advanced from customers Shenyang Aoya Hospital Co., Ltd. 4,996,963.67 Shandong Meiming Aoya Health 4,440,884.96 Consulting Co., Ltd. Chengdu Meizhao Outpatient Co., 3,793,933.15 Ltd. Shenzhen Meizhao Health 3,414,144.86 Management Co., Ltd. Guangzhou Meizhao Health 3,245,787.63 Management Co., Ltd. Putian Meinian Onehealth 3,016,457.78 Management Co., Ltd. Shanghai Meikai Outpatient Co., 2,521,900.21 Ltd. Xianning Meinian Onehealth 2,184,148.57 Examination Management Co., Ltd. Yunnan Ciming Health Service Co., 2,064,872.03 Ltd. Wenshan Meinian Onehealth 2,014,395.33 Examination Center Co., Ltd. Dalian pulan Meinian Comprehensive Health Outpatient 2,000,914.16 Co., Ltd. Qingdao Meinian Health Technology Health Management 1,857,595.69 377,333.00 Co., Ltd. Jilin Changyi District Meinian Onehealth Technology 1,834,531.66 Management Co., Ltd. Baoshan Meinian Onehealth 1,806,615.94 Examination Center Co., Ltd. Dongguan Humen Meinian 1,771,065.40 Onehealth Outpatient Co., Ltd. Guangzhou Meiyi Medical 1,723,303.09 3,627,740.00 Technology Co., Ltd. Chongqing Meizhao Hospital 1,715,235.86 Management Co., Ltd. Xi'an Meizhao Health Management 1,665,943.40 Co., Ltd. 233

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Closing balance Opening balance Shaoxing Meizhao Out-patient 1,665,255.98 Medical Co., Ltd. Kunming Meizhao Health 1,649,283.97 Management Co., Ltd. Shenzhen Meiyang Health 1,548,965.61 Management Co., Ltd. Enshi Meinian Onehealth 1,432,478.40 Management Co., Ltd. Changchun Meijian Health 1,367,858.66 Technology Co., Ltd. Guangzhou Huadu District Meinian 1,275,446.02 Onehealth Management Co., Ltd. Shanghai Meizhao Wuyuan 1,165,100.02 Outpatient Co., Ltd. Jinan Meinian Onehealth 1,127,978.88 Technology Co., Ltd. Tianjin Binhai New Area Ciai 1,095,346.50 Outpatient Co., Ltd. Zhengzhou Meizhao Health 1,065,362.16 Medical Management Co., Ltd. Nanjing Meiyi Outpatient Co., Ltd. 936,606.97 Wuxi Ciming Aoya Outpatient Co., 819,442.45 1,642,664.00 Ltd. Nan'an Meinian Onehealth 813,048.54 Management Co., Ltd. Wuhan Meizhao Health 802,096.09 Management Co., Ltd. Guangzhou Zengcheng Meinian 736,653.02 Health Management Co., Ltd. Zhangzhou Meinian Onehealth 727,395.18 Hospital Co., Ltd. Foshan Wanda Meizhao Health 617,974.53 Management Co., Ltd. Chengdu Wuhou Meinian 614,859.47 Onehealth Outpatient Co., Ltd. Zhengzhou Meijian Health 596,583.39 Management Co., Ltd. Nanjing Meilu Outpatient Co., Ltd. 538,982.12 Dongying Meinian Onehealth Co., 472,748.70 670,239.00 Ltd. Leshan Ciming Health Examination 377,650.69 Service Co., Ltd. Guangzhou Meinian Onehealth 357,930.66 Hospital Management Co., Ltd. Guangdong Meiciaoya Health 307,035.89 Management Co., Ltd. Fuyang Meinian Onehealth 300,756.23 Examination Management Co., Ltd. Taizhou Meizhao Health Checkup 200,817.33 Center (general partnership) Chengdu Meinian Onehealth Center Onehealth Outpatient Co., 194,323.47 Ltd.

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Items Closing balance Opening balance Shaoxing Meinian Outpatient Co., 181,507.31 Ltd. Weihai Guoji Meinian Comprehensive Onehealth 158,495.93 331,374.00 Outpatient Co., Ltd. Huai'an Ciming Huakang Outpatient 58,764.32 87,726.00 Co., Ltd. Tianjin Heping District Meinian Meijia Health Management Co., 41,903.99 Ltd. Shanghai Meiwei Dental Care 36,635.00 Management Group Co., Ltd. Pizhou Ciming Health Examination 26,945.00 Management Co., Ltd. Qingdao Meiweile Medical 18,949.00 Management Co., Ltd. Tongyi Petroleum Chemical Co., 13,233.75 Ltd. Chongqing Ciming Aoya Health 11,844.81 3,169,100.00 Management Co., Ltd. Zhuhai Meinian Onehealth & Health 1,127,379.00 Management Co., Ltd. Zhengzhou Meijian Health 481,250.00 Management Co., Ltd. Kaifeng Meinian Onehealth 593,607.00 Examination Management Co., Ltd. Maanshan Meinian Onehealth 176,623.00 Consulting Co., Ltd. Heze Meinian Onehealth 117,165.00 Examination Management Co., Ltd. Shanghai Zhongwei Anjian Venture 21,900.00 Capital Management Co., Ltd. Beijing Yinxin Changyuan 10,484.60 Technology Co., Ltd. Beijing Ciji Network Technology 2,640.00 Co., Ltd. Total 69,424,953.43 12,437,224.60 Other receivables Beijing Tianyi Hongfang Investment 2,033,270.08 Management Co., Ltd. Beijing Wandong Medical 1,033,600.00 Technology Co., Ltd. Shanghai Elephant Medical Health 893,686.31 Technology Co., Ltd. Shenzhen Yierkang Health 734,161.85 Management Co., Ltd. Zhengzhou Meijian Health 457,656.37 Management Co., Ltd. Zhuhai Meinian Onehealth & Health 308,317.00 10,325.00 Management Co., Ltd. Guangzhou Meiyi Medical 219,872.00 Technology Co., Ltd. Tianjin Meiweile Health 184,482.43

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Items Closing balance Opening balance Management Co., Ltd. Shanghai Meiwei Dental Care 100,000.00 100,000.00 Management Group Co., Ltd. Taizhou Meizhao Health Checkup 90,740.00 Center (general partnership) Yantai Meinian Onehealth 51,955.00 13,894.00 Examination Management Co., Ltd. Weihai Guoji Meinian Comprehensive Onehealth 46,621.00 Outpatient Co., Ltd. Huaihua Meinian Onehealth 40,000.00 Medical Service Co., Ltd. Haining Meinian Health Checkup 30,000.00 Center Co., Ltd. Xiamen Yincheng Meinian 30,000.00 Onehealth Management Co., Ltd. Xi'an Yinggu Network Technology 29,999.97 Co., Ltd. Luoyang Meinian Onehealth 24,932.00 Technology Co., Ltd. Maanshan Meinian Onehealth 24,924.00 Consulting Co., Ltd. Hangzhou Yidian Information 20,000.00 20,000.00 Technology Co., Ltd. Chongqing Banan Ciming Comprehensive Outpatient Co., 17,064.70 Ltd. Shandong Meiming Aoya Health 13,473.00 Consulting Co., Ltd. Dongying Meinian Onehealth Co., 265.00 Ltd. Total 6,384,755.71 144,484.00

XI. Commitments or Contingency 1. Significant Commitments (1) Capital commitments Items Closing balance Opening balance Signed but not recognized in the financial statement —External investment commitments 375,220,500.00 162,425,700.00 Total 375,220,500.00 162,425,700.00

(2) Commitments for operating lease As at the balance sheet date, the irrevocable operating lease contracts that the Company has signed are as follows: Items Closing balance Opening balance

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Minimum lease payment of irrevocable operating lease: The first year after balance sheet date 686,482,298.79 615,314,709.92 The second year after balance sheet date 627,248,435.98 502,544,651.75 The third year after balance sheet date 562,149,443.21 456,126,877.53 Subsequent years 2,100,343,268.49 1,702,906,338.51 Total 3,976,223,446.47 3,276,892,577.71

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 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 withdraw the lawsuit, iKang Guobin submitted the lawsuit to Shanghai Pudong Court, which filed the case on January 17, 2018. After receiving the summon, Meinian Onehealth challenged the jurisdiction of the case to the Shanghai Pudong Court, arguing that neither the place where the infringement claimed by the plaintiff nor the place of result was committed was in Shanghai, but in Guangzhou, The application referred the case to the Guangzhou Intermediate people's Court for trial, and the Shanghai Pudong Court rejected the defendant Meinian Onehealth objection to the jurisdiction of the case. Subsequently, on December 19, 2018, Guangzhou Meinian Clinic filed an appeal against the decision and appealed to the Shanghai intellectual property Court, which dismissed the appeal and upheld the original ruling. April 15, 2019, the case held a pre-court meeting in the Pudong Court. At present, the company is actively working on the preparation of the case, but because the case response procedure has just started, it is not possible to estimate the impact of the lawsuit on the

237

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 company's profits this year and after the period. b. The dispute case of joint infringement of computer software copyright of iKang Health Technology (Beijing) Co., Ltd. charging 4 defendants including Meinian Onehealth, Shanghai Meidong Software Development Co., Ltd. and Wang Haifeng, etc. The litigation claims: To order the defendants to immediately stop the act of infringement of intellectual property of the plaintiff; order the defendants to jointly compensate for the economic loss of RMB 53,000,000; order the defendants to bear all the litigation fees of the case. On December 3, 2016, the evidence exchange was carried out. On January 9, 2017, the confidential evidence exchange was carried out. On June 14, 2017, the Court entrusted Guochuangdingcheng Intellectual Property Judicial Appraisal Center for the appraisal of the software provided by the parties. On April 28, 2018, the appraisal body made an appraisal opinion on the software involved. The details are confidential matters. On June 8, 2018, the court organized the last evidence exchange between the two sides around the expert opinions. On August 21, 2018, after the application of Haifeng Wang, the court began to entrust the appraisal body to carry out supplementary judicial appraisal. On March 21, 2019, the appraisal body made supplementary appraisal opinions on the software involved. The details are confidential matters. The court has arranged for the case to be heard on May 4, 2019. At present, the company is actively preparing for litigation, but because the case is still in the stage of evidence exchange, it is not possible to estimate the impact of this litigation on the company's profits this year and after-term profits. (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, the matter had no breach: Guaranteed amount Name of guaranteed company Term of guarantee (RMB ‘0,000) Baotou Meinian Onehealth Aiputuo Integrated 120.00 60 months Clinic Co., Ltd. Linhai Meinian Risheng Hospital Co., Ltd. 144.00 60 months Anyang Meinian Onehealth Management Co., Ltd. 120.00 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, the matter had no breach:

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Amount of leasing Name of the first lessee Term of leasing (RMB ‘0,000) Yantai Meinian OnePhysical Examination 110.86 60 months Management Co., Ltd. (3) Contingent liabilities related to investment in joint ventures or joint ventures Refer to “Note VIII. Equity in Associated Enterprise”.

XII. Events after the Balance Sheet Date 1. Important Non-adjustment Items Reason for failing Influence on financial conditions and Item Contents to estimate the operating results influence In 2019, interest is expected to be $11.63 Due to exchange million. According to the central exchange The company issued a rate fluctuations, it Issuance of rate of RMB exchange rate in the inter- S-rule senior US dollar is impossible to stocks and bank foreign exchange market on March debt of RMB 200 accurately predict bonds 29, 2019: 6.7335 RMB to 1 USD, it is million the impact on total estimated that the total profit for the year profit. will be RMB 78.31 million. 2. Profit Distribution On April 25, 2019, the Company held the 6th meeting of the 7th Board of Directors, which approved the 2018 annual profit distribution plan. The total share capital of the Company as at December 31, 2018 was 3,114,959,956 shares (the Company has repurchased 6,607,000 shares repurchased by the Company). The stock is based on the undistributed profit of all shareholders. The cash dividend is RMB 0.53 (including tax), and the total cash dividend is RMB 165,092,877.67 (including tax). At the same time, the capital reserve is increased by 2 shares for every 10 shares. The total share capital is 622,991,991 shares, and the total share capital of the Company will increase to 3,744,558,947 shares. The proposal still needs to be approved by the shareholders meeting. 3. Impact of implementing new accounting standards from January 1, 2019 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 2, 2017, 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 the “New Financial Instruments Guidelines”). It also requires 239

Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018 domestic listed companies to be implemented from January 1, 2019. The Company will implement the above new financial instrument standards from January 1, 2019, and will change the relevant accounting policies in accordance with the above new financial instrument guidelines. The following are the main contents of the accounting policy changes involved: All subsequent recognized financial assets under the new financial instrument criteria are subsequently measured at amortised 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 amortised 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 derecognised, the accumulated gain or loss previously recognised 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.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

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 7 operational segments. The management assess 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 7 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 December 31, 2018 / for the year ended 2018 Unit: RMB 10,000 Northeast Eastern China Northern Central Northwest Southwest Southern Offset among Item Total Area Area China Area South Area Area Area China Area divisions Main operating 56,442.94 202,776.24 294,315.90 86,991.43 40,900.19 90,501.95 81,795.32 -7,878.96 845,845.01 revenue Main operating 28,255.96 95,035.83 169,155.33 42,859.71 21,376.58 45,374.31 45,363.33 -3,813.22 443,607.83 costs Total assets 82,475.48 1,778,115.72 329,735.63 135,738.80 43,764.35 125,164.92 115,596.75 -975,134.72 1,635,456.93 Total liabilities 23,614.14 701,773.22 128,856.58 46,956.29 20,648.48 44,070.52 35,321.93 -95,350.96 905,890.20

Note: The trading information of the divisions of Ciming Health Checkup Management Group Co., Ltd. and its subsidiaries is disclosed in North China.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

XIV. Main Items of the Financial Statements 1. Notes receivable and accounts receivable Items Closing balance Opening balance Notes receivable Accounts receivable 7,200,000.00 Total 7,200,000.00

Accounts receivable (1) Disclosed by type

Closing balance Category Book balance Bad debt provision Proportion Proportion Book value Amount Amount (%) (%) 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 7,200,000.00 100.00 7,200,000.00 accrued by portfolio of credit risk features Accounts receivable that are individually insignificant but for which bad debt provision has been accrued individually Total 7,200,000.00 100.00 7,200,000.00

(2) 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 7,200,000.00, accounting for 100.00% 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 302,506,849.32 200,000,000.00 Other receivables 102,447,756.94 360,530,948.76 Total 404,954,606.26 560,530,948.76

(1) Dividends receivables Project (or invested unit) Closing balance Opening balance Meinian Onehealth Industry 300,000,000.00 200,000,000.00 (Group) Co., Ltd.

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Project (or invested unit) Closing balance Opening balance Nantong Meizhao Meinian Health Industry M&A 2,506,849.32 Investment Fund (Limited Partnership) Total 302,506,849.32 200,000,000.00

(2) Other receivables ① Disclosed by type Closing balance

Category Book balance Bad debt provision Proportion Proportion Book value Amount Amount (%) (%) Other receivables that are individually significant and for which bad debt provision has been accrued individually Other receivables for which bad debt provision has been accrued by portfolio of credit risk features (i) Portfolio of related parties in 53,814,045.90 52.53 53,814,045.90 the consolidation scope (ii) Portfolio of special amount 1,781,732.37 1.74 1,781,732.37 nature (iii) Ageing portfolio 46,851,978.67 45.73 46,851,978.67

Subtotal of Combination 102,447,756.94 100.00 102,447,756.94 Other receivables that are individually insignificant but for which bad debt provision has been accrued individually Total 102,447,756.94 100.00 102,447,756.94

(Cont.) Opening balance

Category Book balance Bad debt provision Proportion Proportion Book balance Amount Amount (%) (%) Other receivables that are individually significant and for which bad debt provision has been accrued individually Other receivables for which bad debt provision has been accrued by portfolio of credit risk features (i) Portfolio of related parties in 359,063,955.10 99.59 359,063,955.10 the consolidation scope (ii) Portfolio of special amount 1,466,993.66 0.41 1,466,993.66 nature

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Opening balance

Category Book balance Bad debt provision Proportion Proportion Book balance Amount Amount (%) (%) (iii) Ageing portfolio

Subtotal of Combination 360,530,948.76 100.00 360,530,948.76 Other receivables that are individually insignificant but for which bad debt provision has been accrued individually Total 360,530,948.76 100.00 360,530,948.76

Other receivables for which bad debt provision has been assessed by aging analysis method in portfolio Closing balance Ageing Other receivables Bad debt provision Proportion (%) Within one year 46,851,978.67 Total 46,851,978.67

② Other receivables are classified by nature of the payment Nature Closing balance Opening balance Inter-company transactions 53,814,045.90 359,063,955.10 Stock repurchase 46,484,978.67 Margin 1,083,128.00 1,083,128.29 Deposit 698,604.37 383,865.37 Current account 367,000.00 Total 102,447,756.94 360,530,948.76

③ Other receivables for the top five balances at the end of the balance Closing Proportion of ending Closing balance of Company name Nature Ageing balance of other balance bad debt receivables (%) provision Haitong Securities Stock Within 46,484,978.67 45.37 Co., Ltd. repurchase one year Shanghai Meizhao Inter-company Within Health Management 25,030,000.00 24.43 transactions one year Co., Ltd. Shanghai Meilu Medical Imaging Inter-company Within 12,604,484.90 12.30 Diagnosis Center Co., transactions one year Ltd. Zhoushan Meici Inter-company Within Investment 11,165,000.00 10.90 transactions one year Management Co., Ltd.

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Closing Proportion of ending Closing balance of Company name Nature Ageing balance of other balance bad debt receivables (%) provision Shanghai Meijian Inter-company Within Aoya Health 3,010,000.00 2.94 transactions one year Management Co., Ltd. Total — 98,294,463.57 — 95.94

3. Long-term equity investment (1) Category of Long-term equity investment

Closing balance Items Impairment Book balance Book value preparation 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

(Cont.) Opening balance Item Book balance Book balance Investment in subsidiaries 8,683,979,565.22 8,683,979,565.22 Investment in associated enterprises 1,234,830.17 1,234,830.17 Total 8,685,214,395.39 8,685,214,395.39

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

(2) Investment in Subsidiaries Impairment Closing balance of Investee Opening balance Increase Decrease Closing balance provision provision Meinian Onehealth Industry 5,882,699,415.39 5,882,699,415.39 (Group) Co., Ltd. Ciming Health Checkup Management Group Co., 2,702,615,149.83 90,000,000.00 2,792,615,149.83 Ltd. Shanghai Meizhao Health 41,160,000.00 8,840,000.00 50,000,000.00 Management Co., Ltd. Shanghai Meijian Aoya Health Management Co., 7,505,000.00 13,795,000.00 21,300,000.00 Ltd. Beijing Meinian Insurance 50,000,000.00 50,000,000.00 Broker Co., Ltd. Zhoushan Meici Investment 1,000,000.00 1,000,000.00 Management Co., Ltd. Mainline Health Technology 55,004,780.81 55,004,780.81 (Beijing) Co., Ltd. Shanghai Elephant Medical 5,100,000.00 5,100,000.00 Technology Co., Ltd. Total 8,683,979,565.22 173,739,780.81 8,857,719,346.03

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

(3) Investment to associated enterprises Increase and decrease in the current year Opening Profit or loss Investee Adjustment of Other equity balance Increase Decrease recognized by OCI changes equity method Associate Beijing Langmei Culture Media 1,234,830.17 -285,006.15 Co., Ltd. Shanghai Haozhuo Data -891,094.40 891,094.40 Service Co., Ltd. Total 1,234,830.17 -1,176,100.55 891,094.40

(Cont.) Increase and decrease this year Closing balance of Closing Investee Declared Accruing assets impairment balance distribution of cash impairment Other provisions dividends or profit provision Associate Beijing Langmei Culture Media 949,824.02 Co., Ltd. Shanghai Haozhuo Data Service Co., Ltd. 合计 949,824.02

4. Operating revenue and operating costs Current year Prior year Items Revenue Cost Revenue Cost

Main businesses Other 6,792,452.83 1,174,863.30 businesses Total 6,792,452.83 1,174,863.30 5. Investment income

Items Current year Prior year Long-term equity investment income -1,176,100.55 -2,514,064.66 calculated by equity method Long-term equity investment benefited by 300,000,000.00 315,000,000.00 cost method Investment income of available-for-sale 25,292,853.86 financial assets during the holding period Total 324,116,753.31 312,485,935.34

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

XV. 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 141,362,327.23 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 5,841,208.22 policy, except for government grants in quota or quantity of unified national standards 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 553,685.99 others entrusted 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 116,464.36 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 -13,711,657.39 Other profit or loss items in line with the definition of non-recurring 36,421,967.55 profit or loss Subtotal 170,583,995.96

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Meinian Onehealth Healthcare Holdings Co., Ltd. Notes to financial statements 2018

Items Amount Note Influenced amount of income tax 39,111,025.83 Influenced amount of non-controlling equity (after-tax) 21,680,031.04 Total 109,792,939.09

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 Profits for the current period Return on Equity (%) Basic Earnings Diluted per Share EPS Net profits attributable to the ordinary 13.54 0.26 0.26 shareholders of the Company Net profits attributable to the ordinary shareholders after deducting non-recurring 10.77 0.23 0.23 profit or loss

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