China Health Group Limited provided preliminary unaudited group earning guidance for the six months ended 30 September 2022. For the period, the group expects to record a net loss of approximately HKD 27 million as compared to a net loss of approximately HKD 5.2 million for the six months ended 30 September 2021. The expected increase in loss was mainly attributable to fair value change of contingent consideration of approximately HKD 17.2 million arising from issue of consideration shares in respect of the acquisition of a subsidiary of the Company recognized for the six months ended 30 September 2022 (2021: nil).

Such fair value change is a non-cash item and does not have an immediate impact on the Group's cash flows and operations.