Town Health pursues claims for missed profit guarantees, total claim rises

Town Health International Medical Group has updated shareholders on its pursuit of claims for profit guarantee shortfalls related to its acquisition of Central Medical Holdings Limited. For the financial year ended 31 March 2023, the company identified HK$5,000,000 in transactions not directly attributable to the target group's operations, which overstated profit. Based on legal advice, this "2023 Excluded Amount," multiplied by an agreed price-earnings multiple of 15, led the buyer to amend its claim to a total of HK$172,956,690, an increase of HK$75,000,000 from the original HK$97,956,690.

Furthermore, for the financial year ended 31 March 2024, the seller parties failed to pay the FY2024 claim amount by the 5 September 2025 deadline. Consequently, on 8 September 2025, the buyer initiated proceedings against the respondents for the FY2024 claim amount, along with related interest, legal fees, and costs. The board views these proceedings as appropriate and in the best interests of shareholders.

Due to the confidential nature of both proceedings, the company is currently unable to disclose further details but will provide updates as appropriate in accordance with listing rules.