Jinhai Medical Technology Limited provided earning guidance for year ended 31 December 2023. The board of directors of the Company informed the shareholders of the Company (the "Shareholders") and potential investors that, based on the preliminary review of the draft unaudited consolidated management accounts of the Group and other information currently available to the Board, the Group expects to record a net loss in the range of S$3.5 million to S$4.5 million for the year ended 31 December 2023 (the "Reporting Period"), as compared to a net profit of S$0.12 million for the year ended 31 December 2022. The expected turnaround from net profit to net loss position was primarily attributable to, amongst others, the following reasons: Following the Board's previous reassessment of the business focus and strategic direction, the Group was actively pursuing the minimally surgery solution sector and related medical products and services in China.

As such, certain early stage product development and test manufacturing costs were incurred. Such amount was approximately S$1.15 million for the Reporting Period as compared to approximately S$0.60 million for the year ended 31 December 2022. During the Reporting Period and in relation to the minimally surgery solution business, the Group has incurred additional general and administrative expenses in support of the new business development, including the hiring of relevant industry veterans and other supporting employees, renting of additional places suitable for research and development, manufacturing and marketing of the minimally surgery solution related products.

As such, general and administrative expenses for the Reporting Period amounted to S$0.91 million, comparing to approximately S$0.70 million incurred by the Group for the year ended 31 December 2022. During the Reporting Period and in support of the new minimally surgery solution business, additional promotional and marketing expenses were incurred. Approximately S$1.72 million was incurred for the Reporting Period, while S$0.17 million was incurred for the year ended 31 December 2022.

Certain motivational performance bonus was paid to the management for the Group 's overseas manpower resource and dormitory services business during the Reporting Period for recognition of improvement in the business. Such amount was approximately S$2.5 million.