Sihuan Pharmaceutical Holdings Group Ltd. provided consolidated earnings guidance for the year ended 31 December 2022. For the year, the Group is expected to record a year-on-year decrease in the revenue of not less than 25% for the year as compared with that of the year ended 31 December 2021. The decrease in the revenue of the Group was attributable to a combination of various factors, including primarily the impact of policy changes in the pharmaceutical industry on the Group's sales of pharmaceutical products, macroeconomic downward pressures, disruptions in the supply chain as a result of global geopolitical conflicts, and the impact of the continuing COVID-19 epidemic and response measures on the Company's production, operation and R&D projects.

The Group expects to incur a loss of not more than RMB 2,600 million for the year.