PAIYY 6-K 2022 - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TORULE 13a-16 OR 15d-16UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2022

Commission File Number: 001-39088

Aesthetic Medical International Holdings GroupLimited

1122 Nanshan Boulevard

Nanshan District, Shenzhen

Guangdong Province, China 518052

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F	x	Form 40-F	¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

EXHIBIT INDEX

Exhibit No.	Description
99.1	Aesthetic Medical International and Investors Entered into an Amendment to a Share Subscription Agreement
99.2	English Translation of Share Subscription Agreement (as amended in<br> 2022)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Aesthetic Medical International Holdings Group Limited
	By:	/s/ Guanhua Wu
	Name:	Guanhua Wu
	Title:	Chief Financial Officer
Date: May 31, 2022

Exhibit 99.1

Aesthetic Medical International and Investors Entered into an Amendmentto a Share Subscription Agreement

SHENZHEN, China, May 31, 2022 (GLOBE NEWSWIRE) -- Aesthetic Medical International Holdings Group Limited (Nasdaq: AIH) (the “Company” or “AIH”), a leading provider of aesthetic medical services in China, today announced that the Company, founder and senior executive of the Company and investors on May 30, 2022, entered into an amendment (the “Amendment”) to the share subscription agreement originally entered into among the Company, founder and senior executive of the Company and Lafang China Co., Ltd (“Lafang”) on May 16, 2021 (the “Original SSA”), which the Company disclosed on a Form 6-K furnished with the Securities and Exchange Commission (“SEC”) on May 17, 2021.

The Amendment amended the aggregate subscription amount and subscription price of the Original SSA, among other things. Pursuant to the Amendment, Hawyu (HK) Limited (“Hawyu”, a wholly-owned subsidiary of Lafang) agrees to subscribe an aggregate of newly issued 21,413,276 ordinary shares of the Company (the “Subscription Shares”) for the total consideration of RMB100 million, representing a subscription price of RMB4.67 per ordinary share (equivalent to approximately US$2.1 per American Depository Share (“ADS”) of the Company based on the exchange rate as of the date of this press release). The actual subscription price in terms of the U.S. dollar per ADS will be subject to change upon the exchange rate as of the date immediately prior to the transaction completion date. Dr. Pengwu Zhou and Ms. Wenting Ding entered into the Amendment as parties to the Agreement and guarantors for the Company.

The ordinary shares to be sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other applicable jurisdictions’ securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws.

Upon issuance, the Subscription Share would account for approximately 23.2% of the total outstanding ordinary shares of the Company on a fully diluted basis. Nasdaq Rules 5635(d) provides that shareholder approval is required prior to issuance of securities in relation to transactions other than public offerings whereby there is a 20% Issuance at a price that is less than the Minimum Price, as such terms are defined in Nasdaq Rules 5635(d). We elected to be exempt from this shareholder approval requirement pursuant to Nasdaq Rules 5615(a)(3). We have been advised by our Cayman Islands counsel that under Cayman Islands law and our fourth amended and restated memorandum and articles of association, we are not required to obtain shareholders' approval for the issuance of the Subscription Shares.

Dr. Pengwu Zhou, the Chairman and CEO of the Company, commented, “Despite the fluctuation of COVID-19 and recent market hardship which affect business visibility, we have maintained active communication with Lafang and came to a new consensus in relation to the share subscription plan previously announced on May 17, 2021. The share subscription amount would improve our foreseeable liquidity and financial position, allowing us to prepare ahead in the view of further market changes in the future."

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the ordinary shares, nor shall there be any sale of ordinary shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Aesthetic Medical InternationalHoldings Group Limited

AIH, known as “Peng’ai” in China, is a leading provider of aesthetic medical services in China. AIH operates through treatment centers that spread across major cities in mainland China, with major focus in the Guangdong-Hong Kong-Macau Greater Bay area and the Yangtze River Delta area. Leveraging over 20 years of clinical experience, AIH provides one-stop aesthetic service offerings, including surgical aesthetic treatments, non-surgical aesthetic treatments, and general medical services and other aesthetic services. For more information regarding the Company, please visit: https://ir.aihgroup.net/.

Cautionary Statements

This press release contains “forward-looking statements.” These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “aims”, “future”, “intends”, “plans”, “believes”, “estimates”, “likely to” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These risks and uncertainties and others that relate to the Company’s business and financial condition are detailed from time to time in the Company’s SEC filings, and could cause the actual results to differ materially from those contained in any forward-looking statement. These forward-looking statements are made only as of the date indicated, and the Company undertakes no obligation to update or revise the information contained in any forward-looking statements, except as required under applicable law.

Investor Relations Contacts

For investor and media inquiries, please contact:

Aesthetic Medical international Holdings Group Limited

Email: [email protected]

DLKAdvisory Limited

Tel: +852 2857 7101

Email: [email protected]

Exhibit 99.2

AESTHETIC MEDICALINTERNATIONAL HOLDINGS GROUPLIMITED

SHENZHEN PENGAIHOSPITAL INVESTMENT MANAGEMENT CO., LTD.

AND

ZHOU Pengwu

DING Wenting

AND

LAFANGCHINA CO., LTD.

HAINAN RUNMINGBIOTECHNOLOGY CO., LTD.

HAWYU (HK) LIMITED

in relation to

SHARE SUBSCRIPTIONAGREEMENT

AESTHETICMEDICAL INTERNATIONAL HOLDINGS GROUP LIMITED (AS AMENDED IN 2022)

May, 2022

Content

1.	Definitions And Interpretations	3
2.	This Private Placement/This Offering	7
3.	Conditions Precedent To This Private Placement	8
4.	Closing	11
5.	Representations And Warranties	13
6.	Covenants	13
7.	Liability For Breach And Termination	16
8.	Confidentiality	19
9.	Notices	19
10.	Governing Laws And Dispute Resolution	21
11.	Earnest Money	22
12.	Execution And Effectiveness	23
13.	Miscellaneous	23
Schedule I		1
Representations And Warranties		1
1.	Representations And Warranties Of The Company and the<br> Warrantors	1
2.	Representations, Warranties And Covenants Of The Investors	10

SHARE SUBSCRIPTIONAGREEMENT OF AESTHETIC MEDICAL

INTERNATIONALHOLDINGS GROUP LIMITED (As amended in 2022)

This Share Subscription Agreement of Aesthetic Medical International Holdings Group Limited (as amended in 2022) (this "Agreement") is entered into as of May 30, 2022 in Nanshan District, Shenzhen, Guangdong, the PRC by and among:

(1)	Aesthetic<br> Medical International Holdings Group Limited (“AIH”), an exempted company<br> duly incorporated and validly existing under the laws of the Cayman Islands, with its registered<br> address at Vistra (Cayman) Limited, P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802<br> West Bay Road, Grand Cayman, KY1-1205 Cayman Islands.

Shenzhen Pengai Hospital Investment Management Co., Ltd. (“Pengai Hospital”) is a private company registered and validly existing under the laws of the PRC with a unified social credit code of 91440300769184144M and its registered address at South 4/F, Building 7A, Nanyou No. 4 Industrial Park, Nanshan District, Shenzhen.

(2)	Zhou<br> Pengwu (“Dr. Zhou Pengwu”), a PRC citizen (ID Card No.: 360302195410010513);

Ding Wenting (“Ms. Ding Wenting”), a citizen of the PRC (ID Card No.: 430302196503071529).

Lafang China Co., Ltd. (“Lafang”) is a public company registered and validly existing under the laws of the PRC with a uniform social credit code of 91440500734127713X and its registered address at Lafang Industrial Town, Xinqing Road, National Highway 324, Chaonan District, Chaoshan.

Hainan Runming Biotechnology Co., Ltd. (hereinafter referred to as “Hainan Runming Biotechnology”) is a special purpose vehicle (hereinafter referred to as “SPV”) company established by Lafang China Co., Ltd. on May 27, 2021 in Haikou, Hainan Province, with its uniform social credit code of 91460000 MA5U14G364 and its registered address at Room A23-196, 5/F, Tower A, Incubator, No. 266 Nanhai Avenue, National Hi-tech Industrial Development Zone, Haikou, Hainan Province.

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Hawyu (HK) Limited (“Hawyu HK”) is an offshore SPV established by Hainan Runming Biotech in Hong Kong on June 11, 2021 with its enterprise code of 3057206 and its registered address at Room 32, Floor 11, Lee Ka Industrial Building, 8, Ng Fong Street, San Po Gang, Kowloon, Hong Kong.

The above parties may be referred to herein individually as a “Party” or collectively as the “Parties”; AIH, Pengai Hospital and their Affiliates are hereinafter collectively referred to as the “Company” or the “Group Companies”; Dr. Zhou Pengwu and Ms. Ding Wenting are hereinafter collectively referred to as the "Warrantors"; Lafang, Hainan Runming Biotechnology and Hawyu HK are hereinafter collectively referred to as the “Investors”.

Whereas:

(A)	AIH<br> is a company duly incorporated, validly existing under the laws of the Cayman Islands and<br> listed on the NASDAQ U.S. (stock ticker: AIH). As of the date hereof, AIH is authorized to<br> issue a total of 1,500,000,000 shares and 70,703,671 ordinary shares have been issued at<br> a par value of US $0.001 each.
(B)	AIH<br> desires to issue and sell shares to the Investors and the Investors desire to purchase from<br> AIH such shares; through amicable negotiation, the Parties hereto agree to the issuance of<br> ordinary shares by AIH on the terms and conditions set forth herein for the subscription<br> of such ordinary shares by the Investors (the “Private Placement”);
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(C)	Dr. Zhou<br> Pengwu and Ms. Ding Wenting are spouses and as of the date hereof, Dr. Zhou Pengwu<br> and Ms. Ding Wenting are the actual controllers of the Company.
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(D)	Lafang,<br> AIH and Pengai Hospital entered into the Share Subscription Agreement of Aesthetic Medical<br> International Holdings Group Limited (the “Original Subscription Agreement”),<br> the Supplementary Agreement to Share Subscription Agreement relating to Aesthetic Medical<br> International Holdings Group Limited (the “Supplementary Agreement I”)<br> and the Share Subscription Agreement relating to Aesthetic Medical International Holdings<br> Group Limited (the “Supplementary Agreement II”), dated May 16, 2021,<br> June 2, 2021, and January 28, 2022 respectively.
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The foregoing three agreements are collectively referred to as the "Original Agreements”.

NOW, THEREFORE, BASED ON THE PRINCIPLE OF EQUAL COOPERATION AND MUTUAL BENEFIT, THE COMPANY AND THE INVESTORS AGREE AS FOLLOWS:

1.	Definitions and Interpretations
1.1	Definitions
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In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the following meanings:

(1)	"Private Placement/This Offering" has the meaning indicated in WHEREAS (B).
(2)	"Issuance of Shares/Subscription" means AIH hereby proposes to issue to the Investors 21,413,276<br> ordinary shares.
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(3)	"ODI"<br> means Overseas Direct Investment.
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(4)	Completion of ODI Approval/Filing Procedures, including without limitation the completion of, the<br> National Development and Reform Commission approval/filing, Ministry of Commerce approval/filing,<br> and foreign exchange registration at the State Administration of Foreign Exchange, etc.
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(5)	"Confidential Information" means
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(i)	Any<br> information in relation to any trade secrets of the Parties or of a confidential nature (including<br> any proprietary, technical and commercial information recorded or stored in any form (including<br> computer disks or CDs or audio or videotapes);
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| --- | | (ii) | Any information pertaining to the business, properties, financial or other affairs of one party to the other; | | --- | --- | | (iii) | Information relating to the provisions and subject matter of this Agreement and the other Transaction Documents; | | --- | --- | | (iv) | Details of the existence and purpose of this Agreement; | | --- | --- | | (v) | Any information pertaining to the negotiations of this Agreement and other Transaction Documents, including the information of any negotiations or communications between the Parties hereto after the date of this Agreement. | | --- | --- | | (6) | "Force Majeure Event" means the unforeseeable, unavoidable and uncontrollable occurrence, including, but not limited to, earthquake, volcanic eruptions, floods, tsunamis, typhoons, terrorist attack, act of war, strike, riot, etc. | | --- | --- | | (7) | "Affiliate" means any Person that directly or indirectly controls, or is directly or indirectly controlled by one Person, or is under common control by the same Person. | | --- | --- | | (8) | "Business Day" means a calendar day on which banks are generally open for business in Beijing, Hong Kong and Cayman Islands, other than a Saturday, Sunday or statutory holiday. | | --- | --- | | (9) | "Transaction Documents" means this Agreement and other agreements, instruments and certificates executed by the Parties for the purpose of, in connection with or entered into for the purpose of, this Private Placement. | | --- | --- | | (10) | "Control" means, as to a certain entity, any other Person (or multiple Persons acting in concert), directly or indirectly: (i) owns more than 50% of the outstanding shares, equity interest or other equity interests in such entity; (ii) is entitled to direct the management or policies of such Person through the ownership of more than 50% of the voting power of such Person, or through proxy ownership of more than 50% of the voting power of such Person, or through the right to appoint a majority of the members of the board of directors or similar governing body of such Person, or through other means such as contractual arrangements. | | --- | --- |

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| --- | | (11) | "Execution Date" means the date on which this Agreement is signed (sealed) by all authorized signatories from the Parties listed in the beginning of this Agreement. | | --- | --- | | (12) | "Closing Date" shall take place within three (3) Business Days subject to all Conditions Precedent being satisfied, reached or waived or at such time or date as may be agreed in writing between the Parties (if any). | | --- | --- | | (13) | "Fundamental Representations" means Section 1.1, 1.2, 1.3, 1.5, 1.6, 1.7 and 1.13 of “Representations and Warranties of the Company” in Schedule I hereto. | | --- | --- | | (14) | “Renminbi” or “RMB” shall mean the lawful currency used in the People's Republic of China. | | --- | --- | | (15) | "US Dollars" shall mean the official currency in the U.S. (as defined below). | | --- | --- | | (16) | "Person" shall mean any natural person, corporation, company, partnership, trust, association, governmental authority (including governmental department) or any other entity whether acting in an individual, trustee or otherwise. | | --- | --- | | (17) | "Intellectual Property" shall mean trademarks, service marks, trade names, logos, patents, inventions, design rights, copyrights, proprietary technology as well as other confidential information, and all other related property rights. | | --- | --- | | (18) | "Material Adverse Change" means any event, change, circumstance, occurrence, effect, result or state of facts that, individually or in the aggregate, (i) is, or would reasonably be expected to be, materially adverse to the business, assets, Liabilities, condition (financial or otherwise), results of operations or prospects of the Group Companies, taken as a whole, or (ii) materially impairs, or would reasonably be expected to materially impair, the ability of AIH to consummate any of the transactions contemplated by this Agreement, or prevent or materially delay any the transactions contemplated by this Agreement. | | --- | --- |

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For the avoidance of doubt, a "Material Adverse Change" shall not include any event, fact, circumstance, change or effect that results directly or indirectly from:

（a）           Force Majeure Event;

（b）           any changes in the International Financial Reporting Standards or any authoritative interpretation thereof;

（c）           any action (or omission) required by this Agreement or any action requested or consented to in writing by the Investors; or

（d）           the announcement, disclosure or ongoing performance of this Private Placement; the performance of this Agreement or any other agreement; the consummation of this Private Placement.

(19)	"China"<br> or "PRC" means the People's Republic of China, but solely for the purpose<br> of this Agreement, excluding the Hong Kong Special Administrative Region, the Macau Special<br> Administrative Region and Taiwan.
(20)	"Hong Kong" means the Hong Kong Special Administrative Region of the People's Republic<br> of China.
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(21)	"U.S."<br> means the United States of America.
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(22)	"Cayman Islands" means the Cayman Islands, a British overseas territory in the Western Caribbean<br> islands.
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(23)	"Governing Law" means any law, regulation, statute, judgment, order, decree, by-law, approval,<br> directive, guidance, policy, requirement, or other governmental restrictions applicable to<br> one Party, or any decision, interpretation or administrative order in similar form having<br> the effect of law in the jurisdiction of the Parties.
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(24)	"Transition Period" means the period starting from the Execution Date until the later of (i) the<br> Closing Date or (ii) December 31, 2022 except for any period of time that may be<br> otherwise agreed upon by the Parties in writing.
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1.2	Interpretations
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1.2.1	The<br> headings used in this Agreement for the ease of reference only and shall not in any event<br> affect the meaning or interpretation of this Agreement.
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1.2.2	The<br> Schedules of this Agreement have the same force and effect as if they are an integral part<br> of this Agreement, and any reference to this Agreement shall include Schedules.
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| --- | | 1.2.3 | Unless the context otherwise requires, any reference to a statutory provision shall include subsequent amendments, changes, additions or re-enactments from time to time. | | --- | --- | | 2. | This Private Placement/This Offering | | --- | --- | | 2.1 | Transaction Arrangement of this Private Placement | | --- | --- |

Subject to the terms and conditions of this Agreement, the Investors agree to invest the US Dollars equivalent of RMB100 million in AIH calculated pursuant to the middle exchange rate between Renminbi and US Dollars published by the People's Bank of China on the date immediately prior to the Closing Date (if such date is not a Business Day, the Business Day immediately preceding such date) (the "Investment Price") to subscribe for 21,413,276 common shares of AIH in this Issuance (the "Shares").

2.2	Payment of Investment Price

The Investors agree to pay the Investment Price on schedule after the satisfaction (or waiver) of the conditions precedent in accordance with Section 4 hereof.

2.3	Use of Proceeds

Except as otherwise provided in this Agreement, AIH shall use the proceeds to be received from this Offering for business expansion, working capital or other purposes as consented by the Investors in accordance with the approved company budget and business plan.

2.4	Register of members and Shareholders' Equity

AIH shall issue a register of members to the Investors on the Closing Date provided that AIH has received the entire Investment Price paid by the Investors. The particulars recorded in the register of members of AIH shall comply with relevant regulations of the Cayman Islands.

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| --- | | 3. | Conditions Precedent to this Private Placement | | --- | --- | | 3.1 | Conditions Precedent | | --- | --- | | 3.1.1 | Conditions Precedent to the Investors | | --- | --- |

The Closing of this Private Placement and payment of the Investment Price by the Investors shall be subject to the satisfaction, or written waiver by the Investors, of the following conditions precedent:

(1)	The<br> Company shall have provided the electronic copy of the draft registration document for change<br> in the shareholder register in connection with this Private Placement in the Cayman Islands;
(2)	The<br> Company shall have executed and delivered the original copies of the Transaction Documents<br> to which it is a Party;
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(3)	In<br> the case of the Fundamental Representations made by the Company, such representations and<br> warranties are true, accurate, complete and not misleading as of the date of this Agreement,<br> and shall remain true, accurate, complete and not misleading as of the Closing Date, with<br> the same force and effect as if made on the Closing Date; in the case of other representations<br> and warranties made by the Company, such representations and warranties are true, accurate,<br> complete and not misleading as of the date of this Agreement, and shall remain true, accurate,<br> complete and not misleading as of the Closing Date, with the same force and effect as if<br> made on the Closing Date, except for any failure to be true and correct as of the Closing<br> Date, which would not, individually or in the aggregate, reasonably be expected to have a<br> Material Adverse Change.
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(4)	Any<br> of the covenants and agreements contained in this Agreement to be performed by the Company<br> on or before the Closing Date shall have been performed in all material respects;
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| --- | | (5) | No governmental authority shall have formulated, promulgated, implemented or adopted any law, policy or governmental order that would render this Private Placement unlawful or otherwise restrict or prohibit this Private Placement, and there shall have been no dissuading or stopping this Private Placement by relevant regulatory authorities; | | --- | --- | | (6) | The Investors shall have completed the concentration filing of business operators and achieved the Completion of ODI Approval/Filing Procedures (including, without limitation, the National Development and Reform Commission approval/filing, Ministry of Commerce approval/filing, and foreign exchange registration at the State Administration of Foreign Exchange); | | --- | --- | | (7) | From the date hereof until the Closing Date, no Material Adverse Change shall have occurred to the conditions (financial or otherwise), operation results, assets, regulatory status, business or prospects of the Company, taken as a whole, nor shall any single or several events have occurred which, individually or in the aggregate, have had, or could reasonably be expected to occur, a Material Adverse Change; and | | --- | --- | | (8) | The Company shall have obtained the approval of its board of directors to conduct this Private Placement with respect to the execution and performance of the Transaction Documents. | | --- | --- | | (9) | The concentration filing of business operators relating to the transactions contemplated by this Agreement (if applicable) is approved by the anti-monopoly review authority of China. | | --- | --- | | 3.1.2 | Conditions Precedent of the Company | | --- | --- |

The Closing of this Private Placement by the Company shall be subject to the satisfaction as confirmed by the Company or written waiver by the Company, of the following conditions precedent:

(1)	The<br> Investors shall have executed and delivered originals of Transaction Documents to which it<br> is a Party;

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| --- | | (2) | The representations and warranties made by the Investors in Section 5.2 are true, accurate, complete and not misleading as of the date hereof, and shall remain true, accurate, complete and not misleading as of the Closing Date, with the same force and effect as if made as of the Closing Date, except where any failure to be true and accurate would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Change. | | --- | --- | | (3) | Any covenants and agreements contained in this Agreement to be performed by the Investors on or prior to the Closing Date shall have been performed in material respects; | | --- | --- | | (4) | No governmental authority shall have formulated, promulgated, implemented or adopted any law, policy or governmental order that would render this Private Placement unlawful or otherwise restrict or prohibit this Private Placement; | | --- | --- | | (5) | The Investors shall have completed the of concentration filing of business operators and achieved Completion of ODI Approval/Filing Procedures (including, without limitation, the National Development and Reform Commission approval/filing, Ministry of Commerce approval/filing, and foreign exchange registration at the State Administration of Foreign Exchange); and | | --- | --- | | (6) | The Company shall have obtained the approval of its board of directors to conduct this Private Placement with respect to the execution and performance of the Transaction Documents. | | --- | --- | | 3.2 | Fulfilment, Waiver and Period of Conditions Precedent | | --- | --- | | 3.2.1 | The Parties agree and undertake to use their best efforts to fulfil the Conditions Precedent as set forth in Section 3.1 above as soon as reasonably practicable. | | --- | --- | | 3.2.2 | If any condition precedent under Section 3.1.1 hereof is not satisfied or waived by the Investors prior to December 31, 2022 ("Long Stop Date"), the Investors shall have the right to terminate this Agreement; if any condition precedent under Section 3.1.2 hereof is not satisfied or waived by the Company, the Company shall have the right to terminate this Agreement. In such case, the provisions of Section 7.3 shall apply provided that such right to terminate this Agreement shall not be available to any Party whose failure to perform any of its obligations under this Agreement results in the failure of the Conditions Precedent to be satisfied. If all conditions precedent have been satisfied or waived by the Long Stop Date, the Parties will proceed to Closing pursuant to Section 4. | | --- | --- |

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| --- | | 4. | Closing | | --- | --- | | 4.1 | Subject to the terms and conditions hereof, the Closing referred to herein (the "Closing") shall take place via the remote exchange of documents and signature pages within three (3) Business Days after the conditions to the performance of obligations of the Parties hereto as set forth in Section 3.1.1 and 3.1.2 hereof are proved as being satisfied, realized or waived, or at such other time or on such other date as the Parties may mutually agree upon in writing (the date of the Closing shall be referred to as the "Closing Date") . | | --- | --- | | 4.2 | At Closing, the Parties shall perform the following Closing matters: | | --- | --- | | 4.2.1 | The Investors shall deliver the following documents to the Company: | | --- | --- | | (1) | Bank payment receipt evidencing the full payment of the Investment Price to the offshore account designated by the Company; and | | --- | --- | | (2) | Executed originals of each Transaction Document to which the Investors are parties. | | --- | --- | | 4.2.2 | The Company shall deliver the following documents to the Investors: | | --- | --- | | (1) | a register of members of the Company by the registered agent of the Company in the Cayman Islands, on which Hawyu HK has been recorded as a shareholder holding 21,413,276 shares of the Company and free from any encumbrance of the equity, formalities and contents of the register of members shall comply with the relevant regulations of the Cayman Islands, provided that the Company shall have received the full Investment Price paid by the Investors. If the Company fails to receive the full Investment Price paid by the Investors, the Investors shall have no shareholder's rights (including, without limitation, voting right) and the Company reserves the right to remove the Investors from the register of members at any time despite the fact that the Investors are registered as shareholders of the Company in the register of members; | | --- | --- |

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| --- | | (2) | a scanned copy of the share certificate reflecting the Investors (represented by Hawyu HK) as the holder of the Shares, while the original copies shall be delivered to the Investors within five Business Days after the Closing, provided that the Company shall have received the full Investment Price paid by the Investors. If the Company fails to receive the full Investment Price paid by the Investors, the Investors shall have no shareholder's rights (including, without limitation, voting right) and the Company reserves the right to revoke such share certificate at any time despite the fact that the Company has issued share certificates with respect to the Shares to which the Investors are the holders; | | --- | --- | | (3) | a true and integrated copy of the resolutions duly and effectively adopted by a meeting of the Board of the Company; | | --- | --- | | (4) | original copies of Transaction Documents executed by the Company as one side of this Agreement; and | | --- | --- | | (5) | a certification executed by the legal representative of the Company, stamping with the company's common seal, certifies that the conditions in Section 3.1.1 have been fully satisfied. | | --- | --- | | 4.3 | Payment of Investment | | --- | --- |

The Investors shall remit Investment Price to the Company's account as follows:

Account Number: 1104914027

Name: Aesthetic Medical International Holdings Group Limited

Opening Bank: Citibank N.A., Hong Kong Branch

SWIFT Code: CITIHKHXXXX

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| --- | | 5. | Representations and Warranties | | --- | --- | | 5.1 | Representations and Warranties of the Company and the Warrantors | | --- | --- |

The Company and the Warrantors make the representations and warranties to the Investors as set forth in Section 1 of Schedule I of this Agreement, and the representations and warranties of the Company shall be valid until 18 months after the Closing Date.

5.2	Representations and Warranties of the Investors

The Investors make the representations and warranties to the Company as set forth in Section 2 of Schedule I to this Agreement.

6.	Covenants
6.1	Restrictions on Transition Period
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Subject to the fiduciary obligations of the board of directors of the Company, between the Execution Date hereof and the Closing Date,, the Company undertakes that the Company will consistently operate and maintain the relationships with customers in the normal manner and, except for acts performed pursuant to this Agreement or with the prior written consent of the Investors, the Company shall not:

(1)	Issue,<br> sell, pledge, transfer, dispose of or otherwise subject to any encumbrance, any (i) shares<br> of capital stock of any corporation, or any options, warrants, convertible securities or<br> other rights to acquire any such shares, or any other equity or ownership interests in AIH<br> or any of its subsidiaries, or (ii) any property or assets of AIH or any of its subsidiaries,<br> other than sales or transfers of inventory in the ordinary course of business and consistent<br> with past practice;
(2)	Declare,<br> set aside, make or pay any distribution of profits, dividends, bonuses or other distributions;
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(1)

Issue, sell, pledge, transfer, dispose of or otherwise subject to any encumbrance, any (i) shares of capital stock of any corporation, or any options, warrants, convertible securities or other rights to acquire any such shares, or any other equity or ownership interests in AIH or any of its subsidiaries, or (ii) any property or assets of AIH or any of its subsidiaries, other than sales or transfers of inventory in the ordinary course of business and consistent with past practice;

(2)

Declare, set aside, make or pay any distribution of profits, dividends, bonuses or other distributions;

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| --- | | (3) | Enter into any lease or renewal of lease of real or personal property involving a contractual term in excess of one year or individual lease obligations in excess of RMB200,000 per year; | | --- | --- | | (4) | Incur any indebtedness or issue any debt securities, or assume, guarantee, endorse or otherwise become liable for the obligations of any Person or incur any loans or advances for any purpose other than in the principal business of the Company; provided, however, that in no event shall the Company or any of its Subsidiaries (i) create, assume or guarantee any long-term indebtedness for borrowed money, or (ii) make any optional voluntary repayment of any indebtedness for borrowed money; | | --- | --- | | (5) | Reclassify, consolidate, subdivide or redeem, or directly or indirectly purchase or otherwise acquire any share capital or other equity or ownership interests in, or any other change to, any of its capital structure; | | --- | --- | | (6) | Adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, reorganization, recapitalization or other reorganization of any Group Company or otherwise alter the corporate structure of any Group Company; | | --- | --- | | (7) | Amend its Articles of Association or similar constitutional instruments, except as amended pursuant to this Agreement; | | --- | --- | | (8) | Change any of the Company's methods of accounting or accounting practice or system, except as required by applicable accounting standards; | | --- | --- | | (9) | Enter into any arrangement, contract or agreement with an Affiliate (other than those based on the principle of arm's length transactions and for the conduct of ordinary business); and | | --- | --- | | (10) | Acquire any corporation, partnership, limited liability company, other business organization or division thereof or any material assets or enter into any joint venture, strategic alliance, exclusive dealing, non-compete or similar contract or arrangement; | | --- | --- |

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| --- | | (11) | Amend, waive, modify or consent to the termination of any material contract or amend, waive, modify or consent to the termination of the Company's or any of its subsidiaries' rights thereunder, or enter into any contract other than in the ordinary course of business consistent with past practice; | | --- | --- | | (12) | Adopt, establish, amend or terminate any employee incentive plan or agreement, program, policy, trust or other arrangement relating thereto or granted any shares, phantom shares or long-term incentive awards (including options or cash awards); | | --- | --- | | (13) | Increase the compensation paid or the benefits provided by any of the directors, officers or employees of the Company, or paid any severance or termination pay, or paid, loaned or advanced any amount to any director, officer or employee of any Company, or formulated, adopted, entered into or amended any plan; | | --- | --- | | (14) | Cancel, compromise, waive or release any rights or claims other than in the ordinary course of business consistent with past practice; | | --- | --- | | (15) | Accelerate the collection or discounting of any accounts receivable, defer the payment of accounts payable or defer expenditures; reduce inventory or otherwise increase cash on hand; | | --- | --- | | (16) | Commence or settle any action; | | --- | --- | | (17) | Take other actions or knowingly fail to take any action which may have a real or potential adverse effect on the Private Placement or any other actions that may have a real or potential adverse effect on the Company's operations and business; | | --- | --- | | (18) | Announce the intention to enter into any formal or informal agreement or otherwise commit to do any of the foregoing. | | --- | --- | | 6.2 | Funds Repatriation | | --- | --- |

The Company shall, and the Warrantors shall procure the Company to, complete all registrations, filings and procedures (including registrations with relevant State Administration of Foreign Exchange authorities) for the repatriation of the offshore funds of the Company into the PRC prior to the Closing.

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| --- | | 6.3 | F-3 Registration | | --- | --- |

The Parties agree that prior to the Closing, AIH shall be entitled to file Form F-3 with the U.S. Securities and Exchange Commission to register the shares of AIH ordinary shares. AIH shall not issue such shares of AIH ordinary shares registered on Form F-3 prior to the Closing, unless the closing of this Private Placement does not occur on or before July 15, 2022. If the closing of this Private Placement does not occur on or before July 15, 2022, AIH shall be entitled to issue such shares of AIH ordinary shares registered on Form F-3 after July 15, 2022.

6.4	Capital Expenditure

The Parties agree that prior to the Closing, if AIH authorizes or makes any commitment for the capital expenditure of the Company as a whole in excess of RMB 300,000 individually or RMB 600,000 in the aggregate, it shall notify the Investors prior to such authorization or commitment.

7.	Liability for Breach and Termination
7.1	If<br> all the conditions precedent under Section 3.1 have been satisfied (or waived), but<br> the Closing is not completed due to the failure of any Party to perform its obligation under<br> this Agreement or to perform the agreed Closing matters pursuant to Section 4, the other<br> Parties shall be entitled to take the following actions, and the taking of such actions by<br> the other Parties shall be without prejudice to the rights and remedies of the other Parties<br> against the Party in default:
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(1)	Proceed<br> to Closing to the extent that is reasonably practicable;
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(2)	Postpone<br> the Closing to a date specified by it; or
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(3)	Terminate<br> this Agreement.
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| --- | | 7.2 | If any Party (the "Defaulting Party") breaches any provision of this Agreement (including breach of any representation, warranties or undertaking, or failure to procure the occurrence or non-occurrence of a matter) and fails to cure its breach within thirty (30) days after receiving the written notice from the other party (the "Non-Defaulting Party") requiring it to cure its breach, or such breach is inherently irremediable, the Non-Defaulting Party shall have the right to terminate this Agreement upon prior written notice to the Defaulting Party. In such event, this Agreement shall terminate upon service of written notice from the Non-Defaulting Party to the Defaulting Party, and the Non-Defaulting Party shall not be liable to the Defaulting Party for any damages resulting from the termination of this Agreement. | | --- | --- | | 7.3 | If this Agreement is terminated pursuant to Sections 3.2.2, 7.2 and 7.7, upon the termination of the Agreement, all rights and obligations of the parties shall immediately cease, but termination shall not affect the rights and obligations of any party that have accrued prior to termination, including the right to seek indemnification from the other party in default for such default if the Agreement is terminated due to the default of such other party. | | --- | --- | | 7.4 | Section 8 (to the extent that they deal with each other with respect to post-termination clean-up and settlement) through to Section 13 shall continue in effect after such termination. | | --- | --- | | 7.5 | The Investors (including its successors and assigns) and its Affiliates, senior officers, directors, employees, professional consultants and agents (each an "Investor Indemnified Party") shall be indemnified and held harmless by the Company and the Warrantors (the "Indemnifying Party") for and against all liabilities, losses, damages, claims, costs and expenses, interest, awards, judgments and penalties (including but not limited to attorneys' and consultants' fees and expenses) (the "Losses") directly or indirectly suffered or incurred by the Investors, arising out of or resulting from: | | --- | --- | | (1) | Any breach of any representation, statement or warranty made by the Company and the Warrantors contained in the Transaction Documents; | | --- | --- | | (2) | Any breach of any undertaking or covenant made by the Company and the Warrantors contained in the Transaction Documents; and | | --- | --- |

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| --- | | (3) | All Losses sustained or incurred by the Investors, the Investor Indemnified Party, or the Company as a result of any claim or cause of action of any subject or third party that arises out of any act, omission, event, condition, debt or liability of the Company that arose or existed prior to the Closing. | | --- | --- | | 7.6 | Notwithstanding anything to the contrary contained herein: (i) the Indemnifying Party shall not be liable for any claim for indemnification pursuant to Section 7.5 unless and until the aggregate amount of indemnifiable Losses recoverable from the Indemnifying Party equals or exceeds RMB500,000, in which case the Indemnifying Party shall be liable for the entire amount of such Losses; and (ii) the maximum aggregate amount of indemnifiable Losses recoverable from the Indemnifying Party arising from or in connection with reasons set forth in Section 7.5 shall not exceed the Investment Price, provided, however, that the foregoing clauses (i) and (ii) shall not apply to Losses arising out of, or in connection with, any inaccuracy in or breach of any Fundamental Representation or any representation and warranty made in the case of fraud, willful misconduct or willful misrepresentation. | | --- | --- | | 7.7 | If any Party is unable or delayed in performing its obligations under this Agreement as a result of Force Majeure Event, it shall be relieved of its liability in part or in full, depending on the effect of such Force Majeure Event, provided that it shall immediately notify the other Parties of the occurrence of such Force Majeure Event, and provide the other Parties with detailed information and evidence of such Force Majeure Event, explaining reasons for its inability to perform or delay in performing its obligations hereunder within fifteen (15) Business Days after the date of the occurrence of such Force Majeure Event. | | --- | --- | | 7.8 | If a Force Majeure Event prevents the achievement of the purposes of this Agreement, and the effects of such Force Majeure Event cannot be eliminated or diminished in any way, and the Parties fail to agree on how to achieve the purposes of this Agreement within thirty (30) calendar days after the date of such Force Majeure Event, then upon prior written notice to the other Party, any Party shall be entitled to terminate this Agreement without liability. | | --- | --- |

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| --- | | 8. | Confidentiality | | --- | --- | | 8.1 | Any Party shall keep confidential the Confidential Information. Except as expressly required by the relevant laws and regulations, the rules of the stock exchange on which any Party or its Affiliates are listed, governmental authorities, courts or arbitral bodies, or as described in Section 8.2 hereof, neither party shall disclose the Confidential Information of the other party in any manner to any other entity or person without the prior written consent of the other party concerned. | | --- | --- | | 8.2 | Any Party shall have the rights to: | | --- | --- | | (1) | Disclose the Confidential Information to its directors or employees or to the directors, partners or employees of its Affiliates or advisors; | | --- | --- | | (2) | Disclose the Confidential Information to its advisors who, in its reasonable judgment, need to know such Confidential Information for the purpose of rendering professional advice on the matters described in this Agreement. | | --- | --- | | 8.3 | Any Party shall ensure that its Affiliates, advisors and other persons who have access to Confidential Information pursuant to Section 8 of this Agreement maintain the confidentiality of the Confidential Information and undertake to comply with the provisions of Section 8 of this Agreement. | | --- | --- | | 9. | Notices | | --- | --- | | 9.1 | All notices under or in connection with this Agreement shall be served in Chinese language or in a Chinese version by facsimile, personal delivery, registered mail or domestic or international courier to the Party concerned at the address set out below. | | --- | --- |

Investors

Address:           Lafang Building, No.13 Longjiang Road，Wanji Industrial Town, Longhu District, Shantou City, Guangdong Province

Postal Code: 515041

Contact Person: HUANG Xiaolan

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Company

Address:           Finance Department, 3/F, Shenzhen Pengai Medical & Cosmetic Hospital, No. 1122 Nanshan Avenue, Nanshan District, Shenzhen, Guangdong Province

Postal Code: 518054

Contact Person: WU Guanhua

Warrantors

Address:     Shenzhen Pengai Medical & Cosmetic Hospital, No. 1122 Nanshan Avenue, Nanshan District, Shenzhen, Guangdong Province

Postal Code: 518054

Contact Person: ZHOU Pengwu

9.2	A<br> notice shall be deemed to have been given ("Delivery") at the following<br> time:
(1)	If sent by facsimile, delivery is<br> deemed to occur when the facsimile machine that sent the notice confirms successful delivery by transmission report (if that time<br> is before 5:00 p.m., local time, on a business day of the recipient) or the next (1) business day (if that time is after 5:00<br> p.m., local time, on a business day of the recipient);
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(2)	If sent by personal delivery,<br> service shall be deemed to have been affected at the time of signature.
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(3)	If sent by registered mail,<br> postage prepaid, shall be deemed to be delivered five (5) business days after posting; or
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(4)	If sent by domestic or<br> international courier, shall be deemed delivered three (3) business days after posting.
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9.3	Any<br> Party shall have the right to change the information described in Section 9.1, provided<br> that it shall notify the other Parties of the change in accordance with the requirements<br> of Section 9.1 within two (2) Business Days prior to the change.
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| --- | | 10. | Governing Laws and DisputeResolution | | --- | --- | | 10.1 | Governing Law | | --- | --- |

The conclusion and interpretation of this Agreement and settlement of disputes in connection with this Agreement shall be governed by the laws of Hong Kong Special Administrative Region of the People's Republic of China.

10.2	Dispute<br> Resolution
(1)	Any<br> Party irrevocably agrees that any dispute, controversy, difference or claim arising out of<br> or relating to this Agreement, including the existence, validity, interpretation, performance,<br> breach or termination thereof or any non-contractual dispute arising out of or relating to<br> this Agreement, shall be referred to and finally resolved by arbitration administered by<br> the Hong Kong International Arbitration Centre ("HKIAC") under the HKIAC<br> Administered Arbitration Rules (the "Arbitration Rules") in force when<br> the notice of arbitration is submitted. Any Party hereby irrevocably submits generally and<br> unconditionally to the exclusive jurisdiction of HKIAC in respect of any such legal dispute<br> or proceeding arising out of or relating to this Agreement or the transactions contemplated<br> hereby. Any Party agrees that it will not commence any suit or proceeding relating thereto,<br> other than arbitration initiated at HKIAC, other than an action in a court of competent jurisdiction<br> to enforce any judgment, decree or award of any HKIAC, as described in this Agreement.
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(2)	In<br> order to initiate the arbitration, any Party shall submit a notice of arbitration to HKIAC<br> and all the other Parties at the address provided for notices under this Section 11,<br> in accordance with the Arbitration Rules. The seat, or legal place of arbitration, shall<br> be Hong Kong. The arbitration proceedings shall be conducted in Chinese. The arbitration<br> tribunal shall consist of three (3) arbitrators. The claimant and the respondent in<br> such dispute shall be entitled to appoint one (1) arbitrator in accordance with the<br> Arbitration Rules. If a Party fails to appoint an arbitrator, such appointment shall be made<br> by HKIAC. The two (2) arbitrators so appointed shall appoint the third arbitrator who<br> will act as the presiding arbitrator of the tribunal. If such appointment fails to be made<br> within thirty (30) days from the confirmation of the second arbitrator, the presiding arbitrator<br> shall be appointed by HKIAC. The award rendered by the arbitration tribunal in such arbitration<br> shall be final and binding upon the Parties. The Parties hereby agree not, to the extent<br> permitted by applicable laws, to resort to any judicial proceeding in any jurisdiction seeking<br> to annul, set aside, modify or reduce or impair any of its provisions or effect. Any Party<br> may apply to any court of competent jurisdiction for enforcement of the arbitral award or<br> an order of validation.
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| --- | | (3) | Any Party further agrees that the means of giving notices provided in this Agreement shall constitute sufficient service of process and they further waive any argument that such service is not sufficient. | | --- | --- | | 11. | Earnest Money | | --- | --- | | (1) | The Company shall remit the Investment Price to its account in the PRC as soon as possible and no later than 15 Business Days after the Closing. | | --- | --- | | (2) | After the Closing, the Company shall, at the time of the remittance of the Investment Price to its account in the PRC but no later than the 16th Business Day after the Closing, refund the Earnest Money of RMB 20,000,000 (as defined in the Original Agreements) to the bank account designated by the Investors then. Otherwise, the Company shall pay liquidated damages at the rate of 0.5% for each day of delay. | | --- | --- | | (3) | Except that this Agreement is terminated by AIH in accordance with Article 7.2 hereof due to the Investors' breach of this Agreement, if this Agreement is terminated for any other reason, the Company shall refund the Earnest Money of RMB 20,000,000 within 15 Business Days after the termination of this Agreement; if this Agreement is not terminated and the Closing fails to be completed by December 31, 2022, the Company shall refund the Earnest Money of RMB 20,000,000 on December 31, 2022. | | --- | --- |

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| --- | | 12. | Execution and Effectiveness | | --- | --- |

This Agreement shall become effective upon the date on which the authorized representatives of the Parties affix their signatures and company’s common seals to this Agreement, if applicable (the "Execution Date").

13.	Miscellaneous
13.1	Modification
---	---

No modification of the terms of this Agreement shall be effective unless made in writing and signed by the Parties.

13.2	Further<br> Covenant

The Parties agree that, respectively, before and after the Execution Date, they shall take all necessary actions, including signing, delivery or implementation of all necessary documents, acts or other matters required by the Laws or reasonably requested by the other Party, for the purpose of this Private Placement.

13.3	Taxes

Unless otherwise provided for herein, the relevant taxes in relation to this Private Placement hereunder shall be borne by them respectively in accordance with the applicable relevant laws and regulations.

13.3.1	Any<br> governmental fees levied and charged by any governmental authority in connection with this<br> Private Placement hereunder shall be borne entirely by the Company.
13.3.2	The<br> Parties shall bear their own transaction expenses incurred in connection with this Private<br> Placement (including legal service fees, financial fees, etc.).
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13.4	Waivers
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Failure or delay on the part of any Party to exercise any right under this Agreement shall not operate as a waiver of the same. The previous exercise or partial exercise of any right under this Agreement on the part of any Party shall not preclude its further exercise of that or any other right.

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| --- | | 13.5 | Severability | | --- | --- |

If any provision under this Agreement is or becomes invalid or unenforceable, the validity of the remaining provisions of this Agreement shall not be affected. The Parties shall endeavor to agree on terms that best reflect the business intent of the Parties at the time of signing in lieu of the invalid portion. If, during the implementation of this Agreement, modifications are required pursuant to mandatory provisions of law then in effect, the Parties shall modify the relevant provisions in accordance with the provisions of the relevant law.

13.6	Consensus

This Agreement constitutes a common understanding among the Parties with respect to the matters subject to this Agreement. In the event of any inconsistency between the Parties with respect to terms listed in this Agreement prior to or after the execution of this Agreement or contemporaneously with the terms of this Agreement, the provisions of the written agreement of the parties shall apply with respect to aforesaid terms.

13.7	Otherwise<br> agreed

Any matters not covered in relation to this Agreement shall be subject to supplementary agreement between the Parties with mutual consent. This Agreement may not be amended, supplemented or modified except by an instrument in writing and executed by this Agreement of the Parties hereto.

13.8	Counterparts

This Agreement shall be executed in eight (8) originals and each shall have the same legal effect. Each Party shall keep one (1) original, and the remaining originals shall be submitted to relevant government authorities for handling relevant formalities of this Agreement.

13.9	Facsimile<br> or. pdf Signature

This Agreement may be executed by facsimile or. pdf signature and such facsimile or. pdf signature shall constitute all the original counterparts.

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first above written.

13.10	Third<br> Party Rights

Any person or entity which is not a Party to this Agreement shall have no right under the Contracts (Rights of Third Parties) Ordinance (Chapter 623 of the Laws of Hong Kong) to enforce or to enjoy the benefit of any term of this Agreement.

(The remainder of this page is intentionally left blank, with signature pages and attachments hereto)

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