The board of directors of Lee's Pharmaceutical Holdings Limited informed the shareholders of the Company and potential investors of the Company that, based on the preliminary assessment of the Group's unaudited financial information currently available, the Group is expected to record an unaudited net profit attributable to the Shareholders of between HKD 40 million and HKD 90 million for the year ended 31 December 2022 as compared with approximately HKD 1.99 billion recorded for the year ended 31 December 2021. Based on information currently available, the Board is of the view that the decrease in the profit attributable to the Shareholders the Company for the year ended December 2022 is mainly attributable to, among other things: (i) the absence of one-off gain of approximately HKD 2.32 billion attributable to the derecognition of the investment in Zhaoke Ophthalmology Limited as an associate of the Company in April 2021; (ii) the absence of an aggregate one-time loss of approximately HKD 190.7 million attributable to the estimated impairment of intangible assets due to the optimisation of R&D portfolio in the second-quarter 2021; (iii) the absence of one-time loss of approximately HKD 40.2 million attributable to the full impairment for the licensing fee and development cost for a launched oral antihypertensive product previously capitalised, in the second-quarter 2021); and (iv) the absence of net provision for expected credit losses on financial assets of HKD 90.3 million, being the impairment on the advances made to an associated company in the fourth-quarter 2021.