New Horizon Health Limited provided group earnings guidance for the six months ended June 30, 2023. For the period, the company expects the total revenue of the Group for the six months ended June 30, 2023 is expected to be within the range of RMB 799.5 million to RMB 837.0 million, representing an increase in the range of 254.2% to 270.8% from RMB 225.7 million for the six months ended June 30, 2022. The gross profit of the Group for the six months ended June 30, 2023 is expected to be within the range of RMB 730.4 million to RMB 753.9 million, representing an increase in the range of 294.6% to 307.3% from RMB 185.1 million for the six months ended June 30, 2022.

The increase in total revenue and gross profit was mainly due to increased revenue and the gross profit of products, namely, ColoClear, Pupu Tube and UU Tube. In particular, the revenue from sales of ColoClear for the six months ended June 30, 2023 is expected to be within the range of RMB 480.9 million to RMB 500.9 million, representing an increase in the range of 553.4% to 580.6% from RMB 73.6 million for the six months ended June 30, 2022. The gross profit from sales of ColoClear for the six months ended June 30, 2023 is expected to be within the range of RMB 443.7 million to RMB 451.7 million, representing an increase in the range of 695.2% to 709.5% from RMB 55.8 million for the six months ended June 30, 2022.

The increase in the revenue and gross profit from sales of ColoClear is due to (a) the increase in volume of ColoClear sold and recognized as revenue; and (b) the increase in revenue per test due to higher proportion of revenue generated from channels with more favorable revenue per test (such as hospital and direct-to-consumer channels). Specifically, from preliminary review of the Group's unaudited management accounts for the six months ended June 30, 2023, hospital channel is the larger revenue contributor and the faster growing channel for ColoClear, followed by direct-to-consumer channel and then health checkup centers; the revenue from sales of Pupu Tube for the six months ended June 30, 2023 is expected to be within the range of RMB 117.9 million to RMB 126.4 million, representing an increase in the range of 72.1% to 84.5% from RMB 68.5 million for the six months ended June 30, 2022. The gross profit from sales of Pupu Tube for the six months ended June 30, 2023 is expected to be within the range of RMB 102.2 million to RMB 109.7 million, representing an increase in the range of 86.5% to 100.2% from RMB 54.8 million for the six months ended June 30, 2022.

The increase in the revenue and gross profit from sales of Pupu Tube is due to (a) the increase in volume of Pupu Tube sold and recognized as revenue; and (b) higher revenue per product in direct-to-consumer channel and health checkup centers; and the revenue from sales of UU Tube for the six months ended June 30, 2023 is expected to be within the range of RMB 200.2 million to RMB 209.2 million, representing an increase in the range of 139.8% to 150.5% from RMB 83.5 million for the six months ended June 30, 2022. The gross profit from sales of UU Tube for the six months ended June 30, 2023 is expected to be within the range of RMB 188.4 million to RMB 196.9 million, representing an increase in the range of 150.9% to 162.2% from RMB 75.1 million for the six months ended June 30, 2022. The increase in the revenue and gross profit from sales of UU Tube is due to (a) the increase in volume of UU Tube sold and recognized as revenue; and (b) higher revenue per product in direct-to-consumer channel and health checkup centers.