To: Business Editor
[For immediate release]

(Incorporated under the laws of the Cayman Islands with limited liability)

Harmonicare Medical Sees Bright Prospects from
Changes to China's Two-Child Policy

[30 October 2015, Hong Kong] The Fifth Plenum of the Chinese Communist Party's 18th Central Committee closed yesterday, having examined and adopted "The 13th Five-year Plan" on its agenda. The plan determined a number of livelihood policies, including fully implementing a Two-Child Policy, as a major adjustment to the fertility planning policy which had been implemented more than three decades ago. China's largest private obstetrics and gynecology hospital group, Harmonicare Medical Holdings Limited ("Harmonicare Medical" or the "Group", Stock code: 1509), is expected to benefit directly from the policy change, indicating promising prospects for the Group.

The Fifth Plenum proposed and determined to comprehensively implement the Two-Child Policy to promote balanced development of the population and to actively address current social phenomena such as an uneven population, low fertility rate and an aging problem, modifying the basic state policy for birth control as well as improving the population development strategy. The launch of the Two-Child Policy officially terminates the "One-Child Policy", which has been in place for over 30 years.

Afterwards, Dr. Huang Wenzheng, a Demography specialist and PhD in Biostatistics at Hopkins University, predicted that the Two-Child Policy would result in a newly-added annual population of 3 million to 8 million in the PRC. Qiao Xiaochun, Professor of Institute of Population Research, Peking University, believes the estimated value of the newly-added annual population would be 6 million to 7 million at the high end. When added to the current annual newborn population of 16 million, the peak value could hit around 22 million. In addition, the Policy is expected to create over RMB100 billion in potential consumption.

Mr. Lin Yuming, Chairman, Executive Director and President of Harmonicare Medical, said, "The implementation of the Two-Child Policy is an improvement to China's population control mechanism. It can not only resolve the population issues in China, but can also spark new hope in many families. The expected growth in newborn numbers will have a positive impact on our businesses and we will be thoroughly prepared to meet the enormous market demands. We target to implement 10 high-end hospitals within the coming five years. At the same time, we are working with the appropriate government departments for approval for a test tube baby surgery license, so as to expand the industry chain and to satisfy the increasing customer base under the Policy."

Mr. Lin continued, "As the largest private obstetrics and gynecology specialty hospital group in China, Harmonicare Medical will continue to provide high quality services to pregnant women and newborns in order to ensure they receive the most appropriate recuperation and care. While maintaining the steady development of the Group, we will strive to seize the new market opportunities and actively expand our customer base, so as to consolidate our market position, expand our market share and provide a fruitful return to our shareholders."

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About Harmonicare Medical Holdings Limited
Harmonicare Medical Holdings Limited is the largest private obstetrics and gynecology specialty hospital group in China. According to Frost & Sullivan, Harmonicare Medical ranked No. 1 in terms of both group revenue in 2013 and the number of hospitals by the end of 2013 among all private obstetrics and gynecology specialty hospital groups in China, with a market share of approximately 13.0% by group revenue, which was more than twice that of the market share of the second-largest competitor in the segment. Harmonicare Medical is one of the earliest entrants in the private healthcare service market in China. Harmonicare Medical has created a highly standardized and replicable business model for opening branded chain hospitals by maintaining ownership and management control over all hospitals to ensure the effective execution of the Company's business plans and strategies throughout its hospital chain. Harmonicare Medical has demonstrated its capabilities in adapting its business model to different regions in China.

For more information: http://www.hemeiyl.com.

The press release is issued by Porda Havas International Finance Communications Group on behalf of Harmonicare Medical Holdings Limited. For enquiries, please contact:

Porda Havas International Finance Communications Group

Fax：+852 3150 6728