Hejia Medical Announces Expected 90%-100% Year-over-Year Decline in Net Profit for First Three Quarters Due to Sharp Drop in Investment Income from Weisi Medical

Zhuhai Hokai Medical Instruments Co., Ltd. announced that its net profit for the first three quarters is expected to range from RMB 0 to RMB 8.0694 million, representing a year-on-year decline of 90% to 100%. The decline in performance is primarily attributable to a drop in the stock price of VISHEE (688580), in which Shenzhen Yanghe Biopharmaceutical Industry Investment Co., Ltd., an investee company of the Company, holds an equity interest. This resulted in a significant decrease in the investment income recognized by the Company under the equity method. The investment income recognized by the Company for the first three quarters was approximately -RMB 4.6 million, compared to approximately RMB 87 million recognized in the same period last year.