The board of directors of Guangdong Kanghua Healthcare Co., Ltd. announced that, based on the preliminary assessment of the unaudited management accounts of the Company and its subsidiaries for the year ended December 31, 2019 and the information currently available to the Board, the Group expects to record decrease in its net profit for the year ended December 31, 2019 in the range of approximately 60% to 70% when compared to the net profit of approximately RMB 161.3 million for the year ended December 31, 2018. The decrease in net profit is primarily attributable to the impairment loss on goodwill related to the acquisition of Chongqing Kanghua Zhonglian Cardiovascular Hospital Co., Ltd. in August 2018 and Anhui Hualin Medical Investment Co., Ltd. in April 2018; and full year impact of the loss-making operations of Zhonglian Cardiovascular Hospital (which was acquired by the Group in August 2018).