Viva Biotech Holdings provided group earnings guidance for the year ended December 31, 2022. The board of directors of the company informed the
shareholders of the Company ("Shareholders") and potential investors that, based on the preliminary assessment of the latest unaudited management accounts of the Group and information currently available, for the year ended December 31, 2022, revenue of the Group is expected to increase by over 13% as compared with the year ended December 31, 2021, of which revenue from the CRO business is expected to increase by over 20%, and revenue from the CDMO business is expected to increase by over 8%; the gross profit of the Group is expected to increase by over 25%, as compared with the year ended December 31, 2021, of which gross profit from the CRO business is expected to increase over 16%, and gross profit from the CDMO business is expected to increase by over 35%. However, the Group is expected to record a net loss of not more than RMB 510 million for the Year as compared to the net profit of RMB 300.6 million reported for the year ended December 31, 2021. Based on the information currently available, the Board considers that the net loss is mainly attributable to (i) market fluctuation resulting in negative fair value changes which has a net loss between RMB 350 million and RMB 370 million in the Group's equity interest in incubation portfolio companies; (ii) fluctuation of foreign exchange rates during the Year resulting in foreign exchange losses which is more than RMB 138 million for the Group; (iii) interest expenses of the debt components of convertible bonds issued by the Group which is more than RMB 140 million and the loss on repurchase of convertible bonds which is more than RMB 45 million; (iv) the resurgence of COVID-19 in mainland China limiting the labour utilization rate during the Year; and (v) certain new investment projects are still in their early loss-making stages.