LifeTech Scientific Corporation provided consolidated earnings guidance for the year ended 31 December 2023. Based on the Group's consolidated management accounts for the year ended 31 December 2023 and the preliminary assessment of information currently available to the Board, the net profit of the Group for the year ended 31 December 2023 is expected to record a significant decline as compared to the corresponding period in 2022. The expected decrease in net profit is mainly due to: (i) the increase in the fair value loss of the financial liabilities of approximately RMB 206.3 million arising from the Series B strategic financing completed by Biotyx Medical (Shenzhen) Co., Limited ("Biotyx Medical"), a subsidiary of the Group, during the year; (ii) the increase in the share-based payment expenses related to the employee shareholding platform of Biotyx Medical by approximately RMB 57.1 million; and (iii) the decrease in the net foreign exchange gains by approximately RMB 46.3 million.

The increase in the fair value loss of the financial liabilities mentioned above was due to the significant increase in the valuation of the Series B financing of Biotyx Medical and the corresponding significant increase in the fair value of redeemable shares. As the fair value loss of the financial liabilities and the share-based payment expenses belong to non-recurring items and no cash outflow was involved, the Board considers the Group's operational and financial position to be robust and remains optimistic about the Group's prospects as a whole.