Hospital Corporation of China Limited provided unaudited consolidated guidance for the Year Ended December 31, 2022. For the period, the company expected to record a loss before tax of approximately RMB 477 million to RMB 583 million as compared with the loss before tax of approximately RMB 449 million recorded for the corresponding period in 2021. The expected loss before tax of the Group was primarily due to the impact of COVID-19, the impairment loss on certain goodwill and other intangible assets, the loss on the fair value changes of convertible bonds and exchange loss.

The impairment loss, the loss on the fair value changes of convertible bonds and exchange loss are one-off non-cash items for the period, which have no direct impact on the cash flow of the Group.