New Horizon Health Limited proposed group earnings guidance for the year ended December 31, 2021. The company inform the shareholders of the company and potential investors that, based on the preliminary review of the group's unaudited management accounts for the year ended December 31, 2021, the total revenue of the Group for the year ended December 31, 2021 is expected to be within the range of RMB 205.2 million to RMB 217.2 million, representing an increase in the range of 190.8% to 207.8% from approximately RMB 70.6 million for the year ended December 31, 2020. The gross profit of the Group for the year ended December 31, 2021 is expected to be within the range of RMB 147.0 million to RMB 158.0 million, representing an increase in the range of 294.6% to 324.2% from approximately RMB 37.2 million for the year ended December 31, 2020.

The increase in total revenue and gross profit was mainly due to the increased revenue and the gross profit of products, namely, ColoClear and Pupu Tube, which has led to the substantial increase in total revenue. the revenue from sales of ColoClear for the year ended December 31, 2021 is expected to be within the range of RMB 95.0 million to RMB 99.0 million, representing an increase in the range of 152.9% to 163.5% from approximately RMB 37.6 million for the year ended December 31, 2020. The gross profit from sales of ColoClear for the year ended December 31, 2021 is expected to be within the range of RMB 70.0 million to RMB 76.0 million, representing an increase in the range of 178.7% to 202.5% from approximately RMB 25.1 million for the year ended December 31, 2020.

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); and the revenue from sales of Pupu Tube for the year ended December 31, 2021 is expected to be within the range of RMB 110.0 million to RMB 118.0 million, representing an increase in the range of 245.5% to 270.6% from approximately RMB 31.8 million for the year ended December 31, 2020. The gross profit from sales of Pupu Tube for the year ended December 31, 2021 is expected to be within the range of RMB 78.0 million to RMB 84.0 million, representing an increase in the range of 435.2% to 476.4% from approximately RMB 14.6 million for the year ended December 31, 2020. 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 as a result of higher ex-factory price within each channel and lower proportion of revenue from channels with lower ex-factory price (such as government-sponsored community screening programs).