The board of directors of Viva Biotech Holdings informed the shareholders of the Company and potential investors that, based on the preliminary assessment of the unaudited management accounts of the Group and information currently available, for the six months ended June 30, 2020 (the "Period") the Group is expected to record a significant amount of net loss during the Period as compared to the net profit reported for the six months ended June 30, 2019. Based on the information currently available, the Board considers that the significant net loss is mainly attributable to an extraordinary loss of approximately RMB 650 million in relation to the Convertible Bonds (as defined below) issued in compliance with the International Financial Reporting Standards ("IFRS"). However, the Group expects that as compared with the corresponding period from last year, revenue will increase by over 35% for the Period. Excluding the extraordinary loss in relation to the Convertible Bonds, the Group expects to record an increase in net profit attributable to owners of the Company.