Gelonghui, August 4?02135.HK announced that based on a preliminary assessment of the group's unaudited consolidated management accounts for the six months ended June 30, 2023 and the information currently available to the board of directors, the board of directors expects the group to record: (I) earnings of approximately RMB 98 million for the six months ended June 30, 2023 (for the six months ended June 30, 2022: approximately RMB 94 million) And (ii) for the six months ended 30 June 2023, the loss attributable to the parent owner was approximately RMB 2 million (for the six months ended 30 June 2022: the profit attributable to the parent owner was approximately RMB 1.5 million).
The board of directors believes that the loss is mainly due to the following reasons: (a) in the first month of the reporting period, the business of medical institutions in Zhejiang and Anhui was still affected by the widespread outbreak of COVID-19, resulting in the inability of most customers to visit the group, which affected the performance of the Group in the first half of the year. (B) in order to speed up the R & D and production of the Group's new medical device products, the Group has increased its investment in the R & D activities of Suzhou Yonglan Biopharmaceutical Technology Co., Ltd. ("Suzhou Yonglan"), which is an indirect non-wholly owned subsidiary of the Company. Suzhou Wing Blue's expenses on R & D, plant construction and remuneration of R & D personnel for the six months ended 30 June 2023 were approximately RMB 3 million, which had not been recovered from the economic benefits arising from the reporting period; and (c) for the six months ended 30 June 2023, share option expenses increased to approximately RMB 3 million (for the six months ended 30 June 2022: approximately RMB 2 million).