Guangdong Kanghua Healthcare Co., Ltd. provided earning results for the year ended 31 December 2020. The board of directors of the company wishes to inform the shareholders of the company and potential investors that, based on the Board's preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2020 and information currently available to the Board, the Group is expected to record a loss in range of RMB 48.0 million to RMB52.0 million for the year ended 31 December 2020 as compared to the profit of approximately RMB 48.7 million for the year ended 31 December 2019. The expected turnaround from profit to loss for the year ended 31 December 2020 is primarily attributable to the following: a decline in revenue, which is in turn primarily attributable to a decline in the number of patient visits and decline in the operations of healthcare services at the Group's healthcare institutions during the COVID-19 pandemic in the first half of 2020, while the Group's overall fixed costs remained at a relatively high level as there was no material lay off of staff members and reduction of the relevant expenses due to the COVID-19 pandemic; a continuing loss incurred by Chongqing Kanghua Zhonglian Cardiovascular Hospital Co., Ltd., which continued to hinder the overall performance of the Group; and an expected impairment loss recognised relating to goodwill allocated to the cash generating units of Kangxin Hospital and Anhui Hualin Medical Investment Co., Ltd.