Yunkang Group Limited provided consolidated earnings guidance for the year ended December 31, 2023. For the period, the company expects to record a net loss in the range of RMB 90.0 million to RMB 130.0 million for the period, as compared to a net profit of RMB 373.9 million for the year ended December 31, 2022. The expected turnaround from net profit to net loss was primarily attributable to the following reasons: during the Reporting Period, there was a significant decrease in revenue from the Group's overall diagnostic testing services as compared to last year as a result of a decline in the demand for phased testing and screening nationwide.

However, without taking into account such impact, the Group's routine testing business had achieved a healthy and steady growth during the Reporting Period; during the Reporting Period, the Group further improved its operational and management capabilities and strengthened its cash flow management, resulting in a significant improvement in net cash generated from operating activities as compared to last year. However, due to the longer collection cycle of certain trade receivables, the Group recorded a relatively large amount of impairment provisions; and during the Reporting Period, as the demand for phased testing and screening decreased, the Group effectively implemented a series of measures based on local conditions in order to respond in a timely manner, and there was a decrease in the Group's profitability in the short term as a result of the one-off costs incurred from the elimination of redundancies.