Modern Chinese Medicine Group Co., Ltd. provided consolidated earnings guidance for the year ended 31 December 2023. For the period, it is expected that the group would record a net profit in a sum ranging from RMB 46.0 million to RMB 51.0 million for the Year, which represents a decrease of approximately 42% to 48% compared to approximately RMB 87.8 million for the year ended 31 December 2022. To the best knowledge of the Directors, the decrease in net profit was mainly attributable to 1) the decrease in the number of orders from distributors due to the change in government policy; and 2) the increase in procurement costs.

Despite the aforesaid, the Board does not expect to have a significant adverse impact on the Group's overall operations and cash flows. As at the date of this announcement, the Group has sufficient cash on hand to meet its current business needs.