Wai Chun Bio-Technology Limited provided earning guidance for eighteen months ended 30 June 2022. The board of directors of the Company wishes to inform the shareholders of the Company and potential investors that based on preliminary assessment of the unaudited consolidated management accounts of the Group and the information currently available, the Group is expected to record a loss attributable to the owners of the Company ranging from approximately HKD 19,000,000 to HKD 25,000,000 for the eighteen months ended 30 June 2022 as compared with the loss attributable to the owners of the Company of approximately HKD 8,149,000 for the year ended 31 December 2020. The expected increase in the loss attributable to the owners of the Company for the eighteen months ended 30 June 2022 was mainly due to, among other things, the combined effect of (i) an increase in interest expenses on convertible bonds by not less than approximately HKD 13,000,000 for the eighteen months ended 30 June 2022 because the convertible bonds were issued in November 2020 and January 2022 as compared with interest expenses on convertible bonds of approximately HKD 729,000 for the year ended 31 December 2020; (ii) the recognition of loss on issuance of convertible bonds for the eighteen months ended 30 June 2022 while there were no such loss recognized for the year ended 31 December 2020; and (iii) the recognition of loss on alteration of the terms of convertible bonds for the eighteen months ended 30 June 2022 while there were no such loss recognized for the year ended 31 December 2020.

The interest expenses mentioned above in (i) are mainly made of non-cash interest expenses, and the losses mentioned above in (ii) and (iii) are non-cash flows items, and those expenses and losses do not give any material effect to the business operation of the Group.