New Ray Medicine International Holding Limited announced that reference is made to the announcement of the Company dated 31 January 2020 (the "Profit Warning Announcement") in relation to, among other matters, the business update and profit warning of the Group for the financial year ended 31 December 2019 ("FY 2019"). As disclosed in the Profit Warning Announcement, the Group is expected to record a loss for Fiscal Year 2019 which was primarily attributable to (i) the significant decrease in revenue and gross profit mainly because of the sales decline of the Product due to the suspension of production and sales of the Product during Fiscal Year 2019; (ii) the absence of a net gain arising from the deemed disposal of interest in WinHealth International for Fiscal Year 2019; and (iii) the decrease in share of profit of associate for Fiscal Year 2019 as the Group's investment in WinHealth International had no longer been classified as interest in associate since October 2018 after the dilution of the Group's interest in WinHealth International upon the allotment and issue of new shares of WinHealth International to other parties in April 2018 and October 2018 respectively. Since the date of the Profit Warning Announcement, the Board has further reviewed the unaudited consolidated management accounts of the Group for Fiscal Year 2019 and the other information currently available, the Board wishes to update the Shareholders and potential investors with the financial performance of the Group for Fiscal Year 2019. Based on the preliminary valuation on the value in use of an associate of the Group prepared by an external independent professional valuer, it is expected that there will be a recognition of impairment losses in respect of the interest in the associate as at 31 December 2019 of approximately HKD 21.0 million, while there was no such impairment loss in Fiscal Year 2018. In addition, it is expected that the Group will record an expected credit loss allowance of approximately HKD 9.0 million on the Group's trade and other receivables for Fiscal Year 2019, while there was no such credit loss allowance in Fiscal Year 2018. The actual amount of impairment losses will be subject to finalisation of the valuation by the external independent professional valuer and the audited results by the auditor of the Group. The Board wishes to state that such impairment losses were non-cash in nature and did not affect the Group's cash flow conditions during Fiscal Year 2019.