Shanghai Junshi Biosciences Co., Ltd. provided earnings guidance for the year ended December 31, 2022. For the year, the company expects operating revenue of approximately RMB 1,446 million, representing a decrease of approximately RMB 2,578.8409 million compared with the same period of the previous year or a year-on-year decrease of approximately 64.07%. it is estimated that the net loss attributable to the owners of the parent company for 2022 would be approximately RMB 2,396 million, representing an increase in loss of approximately RMB 1,675.0903 million compared with the same period of the previous year or a year-on-year increase in loss of approximately 232.36%.

Main reasons for the changes in results for the reporting period: (I) During the Reporting Period, the Company recorded less operating income, the main reason of which was that significant licensing income and royalty income generated from etesevimab (JS016/LY-CoV016), a neutralizing antibody for COVID-19, in the overseas markets where the Company cooperated with Eli Lilly and Company were recorded in the previous reporting period, whereas the corresponding licensing income decreased during the Reporting Period since all milestones of the above cooperation had been achieved and such revenue was recognized in 2021. In 2022, one of the Company's core products toripalimab injection (trade name: ® (TUOYI®)) achieved a year-on-year significant increase in sales revenue compared with 2021. With the increase in commercialization capability and approval of two additional large indications for toripalimab during the Reporting Period, the sales of the Company in the domestic market are gradually entering into a positive cycle.

(II) In 2022, the Company's net profit attributable to the owners of the parent company still recorded loss, as the Company's investment in ongoing and reserved R&D projects is at a relatively high level, which cannot be fully covered by the operating revenue after deducting the expenses incurred in respect of product marketing and daily operations. During the Reporting Period, it is estimated that the Company's R&D expenses would be approximately RMB 2,364 million, representing an increase of approximately 14.27% compared with the same period of the previous year. The Company continuously enriched its product pipeline, explored the combination therapy of drugs, accelerated the development of existing clinical projects and reserved R&D projects, as well as accelerated the development of a number of product pipelines with first-in-class or differentiated development value during the Reporting Period, which led to a further increase in R&D expenses of the Company.

During the Reporting Period, two additional indications for toripalimab have been approved for marketing by the National Medical Products Administration; eight indications for adalimumab (trade name: JUNMAIKANG ®) have been approved for marketing by the NMPA; nine pipeline assets have been approved for clinical trials by the NMPA and three pipeline assets have been approved for clinical trials by the U.S. Food and Drug Administration. In summary, the Company is expected to record a net loss for 2022, and the loss is expected to increase as compared to the same period of the previous year.