New Century Healthcare Holding Co. Limited provided preliminary unaudited consolidated group earnings guidance for the six months ended 30 June 2022. For the period, the Group is expected to record a loss before tax of approximately RMB 210.0 million to RMB 260.0 million for the six months ended 30 June 2022 (subject to further adjustments and impairment assessments) as compared with the loss before tax of approximately RMB 37.9 million recorded for the corresponding period in 2021.

The expected increase of the loss before tax of the Group was primarily due to the impact of COVID-19 and the on-going stringent epidemic control policies implemented by the PRC government since the second quarter of 2022 in view of the higher transmissibility of the Omicron variant, which led to (i) the reduction in demand for medical treatment and services; (ii) the expected credit losses related with certain financial assets; and (iii) the impairment loss on certain goodwill and other intangible assets.