Hengkang Medical Group Co.Ltd(002219) : pre disclosure announcement of the manager on the proposed reduction of shares by shareholders holding more than 5%

Hengkang Medical Group Co.Ltd(002219)

Securities abbreviation: ST Hengkang securities code: Hengkang Medical Group Co.Ltd(002219) Announcement No.: 2022019 Hengkang Medical Group Co.Ltd(002219) Manager

Pre disclosure announcement on the proposed reduction of shares by shareholders holding more than 5%

The manager of the company, the company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and there are no false records, misleading statements or major omissions.

Special note: shareholders of Hualong Securities Co., Ltd. who hold 141410060 shares of Hengkang Medical Group Co.Ltd(002219) (hereinafter referred to as “the company”) (accounting for 7.58% of the total share capital of the company) and “Hualong securities jinzhihuizhiyabao No. 4 collective asset management plan” It is planned to reduce the company’s shares by means of centralized bidding trading and block trading within 6 months after 15 trading days from the date of disclosure of this reduction announcement, with the number not exceeding 111900000 shares. Among them, the number of shares reduced through centralized bidding trading in any continuous 90 natural days shall not exceed 1% of the total number of shares of the company; In any continuous 90 natural days, the number of shares reduced through block trading shall not exceed 2% of the total shares of the company.

On March 1, 2022, the company received the notification letter on share reduction plan from Hualong Securities Co., Ltd., a shareholder holding more than 5% shares, and “Hualong securities jinzhihuizhiyabao No. 4 collective asset management plan”. The relevant matters are disclosed as follows:

1、 Basic information of shareholders

Name of shareholder: Hualong Securities Co., Ltd

Shares held by shareholders: as of the disclosure date of this announcement, Hualong Securities Co., Ltd. and “Hualong securities jinzhihuizhiyabao No. 4 collective asset management plan” held 141410060 shares of the company’s non tradable shares, accounting for 7.58% of the total share capital of the company.

2、 Main contents of this reduction plan

1. Reason for reduction: realization of creditor’s rights.

2. Source of shares: on March 19, 2021, according to the execution ruling issued by the higher people’s Court of Gansu Province, the 94000000 shares of Hengkang Medical Group Co., Ltd. (securities code Hengkang Medical Group Co.Ltd(002219) ) held by the executed Mr. que Wenbin were transferred to the “asset management plan No. 4 of Hualong securities jinzhihuizhiyabao” managed by the applicant Hualong Securities Co., Ltd, The Shanghai Pudong Development Bank Co.Ltd(600000) 00 shares of Hengkang Medical Group Co., Ltd. held by the executee Mr. que Wenbin were transferred to the applicant Hualong Securities Co., Ltd.

Hengkang Medical Group Co.Ltd(002219)

3. Reduction time range: within 6 months after 15 trading days from the date of disclosure of this announcement. The centralized bidding trading method shall be within 6 months after 15 trading days from the date of announcement of the reduction plan; The block trading method shall be within 6 months after 3 trading days from the date of announcement of the reduction plan.

4. Number and proportion of shares to be reduced: Hualong Securities Co., Ltd. shall not exceed 111900000 shares (accounting for 6.00% of the total share capital of the company) within 6 months after 15 trading days from the date of disclosure of this announcement (except for the period during which the reduction is prohibited according to the relevant provisions of the China Securities Regulatory Commission and Shenzhen Stock Exchange). Among them, the number of shares reduced through centralized bidding trading in any continuous 90 natural days shall not exceed 1% of the total number of shares of the company; In any continuous 90 natural days, the number of shares reduced through block trading shall not exceed 2% of the total shares of the company. If the company has any changes such as share distribution, conversion of capital reserve into share capital, share allotment, etc. during the implementation of the share reduction plan, the above reduction quantity can be adjusted accordingly according to the above changes.

5. Reduction method: through centralized bidding trading and block trading.

6. Reduction price range: determined according to the market price and trading mode at the time of reduction on the premise of complying with relevant laws, regulations and rules of Shenzhen Stock Exchange.

3、 Relevant risk tips

(I) uncertainty risk of the implementation of the reduction plan

Whether or not there is uncertainty in the implementation of the share reduction plan of Hualong and the time of the share reduction plan, and whether or not there will be uncertainty in the implementation process of the share reduction plan of Hualong.

(II) the implementation of the share reduction plan will not lead to the change of control of the listed company

Hualong Securities Co., Ltd. is not the controlling shareholder or actual controller of the company. The implementation of this share reduction plan will not lead to the change of the company’s control, and will not have an adverse impact on the company’s governance structure, equity structure and sustainable operation.

During the implementation of this reduction plan, Hualong Securities Co., Ltd. will strictly abide by the securities law of the people’s Republic of China, several provisions on the reduction of shares held by shareholders, directors, supervisors and senior managers of listed companies, the stock listing rules of Shenzhen Stock Exchange, the guidelines for the standardized operation of listed companies on Shenzhen Stock Exchange The detailed rules for the implementation of share reduction by shareholders, directors, supervisors and senior managers of Listed Companies in Shenzhen Stock Exchange and other relevant provisions shall disclose the progress in a timely manner.

The information disclosure media designated by the manager of the company are securities times, Securities Daily, China Securities News, Shanghai Securities News and cninfo (www.cn. Info. Com. CN), All information of the company is in the above

Hengkang Medical Group Co.Ltd(002219)

The information disclosed by the designated media shall prevail. Please pay attention to the relevant announcements and pay attention to the investment risks.

4、 Documents for future reference

1. Notification letter on share reduction plan

It is hereby announced.

Hengkang Medical Group Co.Ltd(002219) Manager

March 1, 2002

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