CanSino Biologics Inc. provided earnings guidance for the period from January 1, 2022 to December 31, 2022. According to the preliminary estimation of the company, the net loss attributable to the shareholders of the company for the year ended December 31, 2022 (‘Reporting Period') is expected to be RMB 830.0 million to RMB 996.0 million. The net loss attributable to the shareholders of the Company after deducting the non-recurring profit or loss for the year ended December 31, 2022 is expected to be RMB 945.0 million to RMB 1,134.0 million.

During the Reporting Period, the domestic and overseas market environment of COVID-19 vaccines has changed significantly. The demand for COVID-19 vaccines has decreased significantly compared with the corresponding period last year. The growth rate of COVID-19 vaccination worldwide has decelerated, and the supply of COVID-19 vaccines exceeds the demand in some regions.

With the intensified competition of market, the Company's sales revenue of COVID-19 vaccine products decreased significantly compared with the corresponding period last year. Meanwhile, the sales expenses increased compared with the corresponding period last year due to the continuous promotion of commercialization, and the Group recognized the provision of COVID-19 vaccine products related inventory with signs of impairment. As a result, the Company incurred a loss in the net profit attributable to the shareholders of the Company.