Dingdang Health Technology Group Ltd. provided unaudited consolidated guidance for the year ended December 31, 2022. For the period, the company expects an increase of approximately RMB 1.590 billion in the fair value losses on the Company's shares with preferred rights as financial liabilities at fair value through profit or loss in FY2022 as compared to the year ended December 31, 2021, resulting in an increase in net loss for FY2022 of approximately not less than 83% as compared to the net loss of RMB 1.599 billion for FY2021. The Company accounted for the shares with preferred rights as financial liabilities at FVTPL.

The shares with preferred rights have been automatically converted into ordinary shares upon the completion of the Company's listing of its Shares on The Stock Exchange of Hong Kong Limited, and no further loss or gain on fair value changes is expected to be recognized afterwards. Accordingly, the Company expects its net liability position to turn into net asset position, and the reconciling item is non-cash and does not result in cash outflow; and excluding the effect of fair value losses on financial liabilities at FVTPL related to the shares with preferred rights, share-based payments and listing expenses, due to improvements in operating efficiency, the adjusted net loss Note for FY2022 narrowed by approximately not less than 50% as compared to the adjusted net loss of RMB 330 million for FY2021.