On 29thMarch2016,Universal MedicalFinancial & Technical Advisory Services Company Limited ("Universal Medical" or "the Company"; stock code:2666) announcedthe auditedconsolidated annual results for the yearended 31 December 2015.During 2015, the Company realized a revenue ofRMB2,193 million, representing an increase of RMB641 million or 41.3% as comparedto the previous year.Profit before tax amounted to approximately RMB900 million, representing an increase ofRMB289million or47.3% as compared to the previous year.

FINANCIAL HIGHLIGHTS

On 29thMarch2016,Universal Medical announcedthe auditedconsolidated annual results for the yearended 31 December 2015.During 2015, facing the difficulty and challenge from the external economy, the Companyseized the development opportunities of healthcare industry. With the strategic goal as anintegrated healthcare services provider, the Companyfurther developed the medical resources platform,extended the Company’s industry chain, developed a new business model with a combination of industryand finance and continuously strengthened risk prevention and control and achieved stableand healthy growth in operating results. During 2015, the Company realized a revenue ofRMB2,193 million, representing an increase of RMB641 million or 41.3% as comparedto the previous year.Profit before tax amounted to approximately RMB900 million, representing an increase ofRMB289million or47.3% as compared to the previous year.

In 2015, theCompany’s gross profit was RMB1,309 million, increasing by RMB375 millionor 40.2% as compared to last year. In particular, interest margin gross profit of finance leasebusiness was RMB598 million, representing an increase of RMB162 million or 37.2% ascompared to last year; gross profit of industry, equipment and financing advisory serviceswas RMB586 million, representing an increase of RMB144 million or 32.5% as comparedto last year; gross profit of clinical department upgrade services was RMB123 million,representing an increase of RMB67.89 million or 123.5% as compared to last year, andits gross profit as a percentage of total gross profit has increased from 5.9% in 2014 to9.4% due to the consistentimprovement of theCompany’s medical technology services.

Improvingmedical technology servicecapability

The Companycontinued to strengthenitsprofessional capabilities and expanditsmedical resourceswhichconsiderablyenhanced the Company’s medical technology servicecapability. Focusing onCerebral Vascular Accident (“CVA”) prevention, screening and treatment,the Companyintroducedinternationally advanced technology and managerial expertiseandfurther optimized theclinical department upgrade business modelthat integratesspecialists, technology,trainings, capital and equipment, and cooperated with experts and institutions in variousfields of study to expand the CVA clinical department upgrade business model into otherfields ofmajorand difficultdiseases in oncology, obstetrics and gynecology, and cardiology.The Company’simprovedabilities in providing medical technology services have allowedthe Companyto expand service chainand provide more extensive and in-depth clinical department upgrade services to morehospital customers.

Major breakthrough in strategic business

On10 January 2016,the Company entered into a framework agreement with the First Affiliated Hospitalof Xi’an Jiaotong University in connection with the joint establishment and operation ofthe International Land Port Hospital under First Affiliated Hospital with an aim to builda leading medical center of high standard in northeast China by establishing a medicalmanagementgroupand cooperating in construction and operation of International Land PortHospital.The Companyhasmade a major breakthrough in the Company’s hospital investmentandmanagement business.

On 10 December 2015,the Companyentered into aframework agreement with Bengbu Municipal Government of Anhui province in respect ofthe joint development of healthcare institutions and elderly care industry. Both parties willcooperate with large local hospitals to launch various projects phase by phase and step bystep in accordance with the local requirements on deepening healthcaresystem reform. Projects in other provinces are also well underway.

In hospital investmentandmanagement business,the Companyfirmly grasped the developmentopportunity in response to the State’s call to widely adopt Public-Private Partnership(“PPP”)in public services sectors like healthcare, public health as well as elderly care, and wouldchoose areas that have large population and good economicconditionand need enhancementof medical supplycapabilityand corporate with regionally leading hospitals through entrustedmanagement, equity cooperation and other modes. Also,the Companywill use those hospitals as thebase and gradually penetrate the surrounding areas. Based on the concept of “thelargeguidingthe small and the old guiding the new”,the Companywill establish regional medical managementCompany withcoordinationmechanism and resource sharing.

At the same time,the Companywould establisha long-term win-win cooperation model with the hospitals for a term of 20 to 30 years ora perpetual period. Through the introduction of capital, technology, talents, managementphilosophy and management mechanism to cooperative hospitals,the Company wouldcomprehensivelyenhance the quality oftheir medicalservices andmanagement. Throughthe operation and management of hospitals,the Companyalso benefit from the improvement ofhospital services andshare the interest generated byoperating supply chain and related industriesin a sustained, stable and reasonable way.

Continuous expansion of medical resources platform

In 2015,the Company’smedical resources platform continued to expand.The Company hascooperated withmore than 200 well-known medical expertsfrom home and abroad, and established cooperativerelationships with 13 internationally-renowned hospital management and consulting servicescompanies, 11 well-known hospitals in Europe and America, 6 architectural design firmsfor hospitals and 4 international physician associations. Through strategic cooperation withinternationally-renowned healthcare services institutions,the Company has gained rich experience inhospital management, grasped excellent hospital management methods, introduced advancedhospital design concepts and enhanced the Company’sabilitiesin providing integrated healthcare services.

Progressive establishment of regional medical resources network centers

As of 31 December 2015, the number ofthe Company’shospital customers exceeded 1,200 covering 30provinces in China. In order to achieve synergy of regional medical resources,the Companyopenedrepresentative offices in center cities of 5 provinces including Shandong, Henan, Hunan,Sichuan and Shaanxi based on population, the number of hospitals, existing customer baseas well as geographical coverage. By doing so,the Companyestablished a medical resources networkcovering the whole country, and it also laidthe groundfor establishing regionalmedicalgroups featuringcoordinationand resources sharing.

Future Prospects

In the years to come,based onthe guidance and support of national policies,the Companywill firmly seize the golden opportunities in China’s healthcare andelderly care market,focus onbecoming a leading integrated healthcare services provider, constantly reinforce the Company’s operatingbase, expand the Company’s medical resources platform, steadily developthe Company’smedical financing services,and make it the Company’ssteadilygrowingprofit source and its cornerstonefor innovation.The Companywill actively promote theits medical technology services with afocus on clinical department upgrade, and make it the Company’s incubator of new profitsource; vigorously advance the Company’s hospital investment management business, and make it theCompany’s driving force ofthe rapid growth of itsresults.The Company will develop hospital digitalizationservices in a collaborative manner andcontribute to the development ofthe cooperative hospitalsthatthe Companyinvested and managed.

At the same time, the Company will continue to innovate integrated healthcare servicesmodel to achievesynergyof medical financing services, hospital investmentandmanagement, medical technology services and hospital digitalization, constantly optimizebusiness value chain with combination of industry and finance and gradually achievecomprehensive optimization of the Company’s business structure and financial structure,which will lay a solidgroundfor the sustainable development of the Company and creategreater value forthe Company’sshareholders.

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