The board of directors of Tianda Pharmaceuticals Limited informed the shareholders of the Company and potential investors that, based on the preliminary assessments on the Group's unaudited consolidated management accounts for the year ended 31 March 2021 (the current financial year), the Group expects to record a loss attributable to owners of the parent of approximately HKD 27 million for the current financial year, as compared to a profit attributable to owners of the parent of HKD 3.14 million for the year ended 31 March 2020 (the last financial year). The decrease in the profit attributable to owners of the parent as compared with the last financial year was mainly due to the following: (1) As disclosed in the Group's interim report, the revenue and gross profit of the Drugs & Medical Technologies business (formerly known as the Pharmaceutical and Biotechnology business) declined due to the adjustment to the National Medical Insurance Catalog in China and the precautionary measures for the COVID-19 pandemic; (2) R&D expenses surged as an attempt to accelerate technological advancements and to optimize the Group's product mix; and (3) the revenue and gross profit of the Chinese Medicine business and Medical & Healthcare services (formerly known as the Chinese Medical business) more than doubled as compared with the last financial year but was not able to compensate for the decline in gross profit of the Drugs & Medical Technologies business and the surge in R&D expenses.