Fusen Pharmaceutical Company Limited provided consolidated earnings guidance for the six months ended 30 June 2022. based on the unaudited consolidated management accounts of the Group for the six months ended 30 June 2022 and the information currently available to the Company, the Group is expected to record an expected loss attributable to owners of the Company with a range from approximately RMB 5 million to RMB 9 million for the six months ended 30 June 2022 (the “Interim Period''), as compared with the profit of approximately RMB 43.36 million in the corresponding period last year. The Board considered that the changes in results for the Interim Period are mainly due to the following factors: the implementation of control measures to combat the COVID-19 outbreak in the PRC in the first half of 2022 has restricted the sales of antitussive and cold medicine.

In particular, the sales of the Group's major products, Shuanghuanglian Oral Solutions, is expected to record a decrease by over 45%, as compared to approximately RMB 123.10 million for the six months ended 30 June 2021. the result of the Group's joint venture Jiangxi Yongfeng Kangde Pharmaceutical Company Limited was affected by a centralized procurement policy, and the Group is expected to record the share of loss of a joint venture of approximately RMB 1 million to RMB 3 million in the first half of 2022, as compared to the share of profit of a joint venture of approximately RMB 11.72 million for the six months ended 30 June 2021; and due to decrease in sales of the aforesaid products, the Group is expected to record a decrease in revenue by over 20%, as compared to approximately RMB 214.21 million for the six months ended 30 June 2021.