THE CEO: Hello, everybody.

Universal Medical has experienced remarkable achievements from 2015 to 2016, during which China’s medical reform had been more sufficient than ever before. We adhered to our strategic positioning as an integrated healthcare service provider, continued to expand our medical resources platform and enhanced our abilities of medical technology services, which has enabled us to achieve exciting and good financial performance and operating results.

On behalf of the management and staff of Universal Medical, for the first anniversary of IPO I would like to express my greatest gratitude to leaders from all departments, our shareholders, customers and business partners for your continuous trust and support.

Glide with the wind flow

Upped comprehensive strength

--Instant improvement in operating results

On 8 July 2015, Universal Medical Financial & Technical Advisory Services Company Limited was listed on Hong Kong Stock Exchange. Over the past year, we focused on the goal of becoming an integrated healthcare services provider and firmly seized development opportunities while national policies giving strong backing to us. In addition to the reinforcement of our medical resources platform and the expansion of our hospital customer base, we accelerated business innovation, improved service quality, provided more in-depth integrated healthcare services solutions to hospital customers and achieved rapid growth in our operating results. In 2015, the Company recorded a total revenue of RMB2,193 million and profit before tax of RMB900 million, representing an increase of 41.3% and 47.3% as compared to last year.

--Continuous expansion of medical resources platform

Up to now, the number of our hospital customers has exceeded 1,200 covering 30 provinces in China. We have cooperated with hundreds of well-known experts from home and abroad and established strategic cooperative relationships with dozens of professional medical services providers from China, the U.S. as well as European countries. We shall bring our medical resources into full play and promote high-tone cooperation.

Stick to business innovation

Bold in making a breakthrough

--Establish regional medical resources network centers

In order to achieve synergy of regional medical resources, we have been very keen on resources distribution. We opened representative offices in center cities of 6 provinces including Shandong, Henan, Hunan, Sichuan and Shaanxi based on population, the number of hospitals, existing customer base as well as geographical coverage. By doing so, we established a medical resources network covering the whole country, and it also laid the ground for establishing regional medical groups featuring coordination and resources sharing.

--Improve medical technology service capability

Focusing on CVA prevention, screening and treatment, we introduced internationally advanced technology and managerial expertise, and we further optimized the clinical department upgrade business model that integrates specialists, technology, trainings, capital and equipment, and cooperated with experts and institutions in various fields of study to expand the CVA clinical department upgrade business model into other fields of major and difficult diseases in oncology, obstetrics and gynecology, and cardiology. Our improved abilities in providing medical technology services have allowed us to expand service chain and provide more extensive and in-depth clinical department upgrade services to more hospital customers. In 2015, the Company’s gross profit of clinical department upgrade services reached RMB123 million, representing an increase of 123.5% over the previous year, and the gross profit of clinical department upgrade services as a percentage in total gross profit increased to 9.4% from 5.9% in 2014.

--Major breakthrough in strategic business

Leveraging on our rich medical resources, we have made a major breakthrough in our hospital investment and management business. On 10 January 2016, we entered into a framework agreement with the First Affiliated Hospital of Xi’an Jiaotong University, the largest Level 3-Grade A hospital in northeast area, in connection with the joint establishment and operation of the International Land Port Hospital under First Affiliated Hospital, with an aim to build a leading medical center of high standard in northeast China by establishing a medical management group and cooperating in construction and operation of ILP Hospital. Meanwhile, we will further integrate our medical resources, and gradually expand its services into over 100 local hospitals at primary level supported by the First Affiliated Hospital of Xi’an Jiaotong University.

On 14 June 2016, Universal Medical and the Second Affiliated Hospital of Zhengzhou University officially signed a framework agreement pertaining to the joint establishment of the International Airport Hospital. The hospital to be built will effectively improve the allocation of local medical resources and comprehensively enhance medical technology level and therefore the growing medical need of populous Henan Province could be met, providing support for development strategies of “Rise of Central China” and “Central China Economic Zone”. Projects in other areas are also in full swing.

Meanwhile, we are in the right course of forming a leading group of talents in hospital information technology, providing strong support for our hospital investment and management business.

Leverage on medical resources platform

Committed to establishing an internationally-leading medical services provider

--Form a group of hospital IT talents top of the country

Together with the deepening integrated medical business model, hospital digitalization has been on the agenda. At present, we are in the right course of forming a leading group of talents in hospital information technology, providing strong support for our hospital investment and management business. On the framework of different hospital customers, we would develop customized IT system to effectively promote operation efficiency and managerial level of the hospital, making patients more comfortable.

--Strive to develop projects combining healthcare resources with elderly care

The fast-growing aging people have spurred the great demand of medical services. Chinese government calls for integrative development of healthcare and elderly care and therefore encourages businesses to be engaged in healthcare and elderly care institutions with the political requirement of setting up a batch of medical groups qualified both as healthcare institution and elderly care center. With the implement of the policy, China’s healthcare market will enjoy a further growth. Universal Medical, as a public-traded SOE company, sticks to the philosophy of “People First” and “Built for People’s Livelihood” and has been committed to carrying out projects combining healthcare resources with elderly care. We support medical institutions of various level to lift comprehensive capacities, with an aim to play a key part in China’s medical reform.

In the years to come, we will further expand our medical resources platform and leverage on our advantages to innovate business models to achieve the synergy of medical financing services, hospital investment and management, medical technology services and hospital digitalization so as to be a global leading integrated services provider! We will achieve the sustainable, stable and sound development and create greater value to shareholders and the society!