Stock code: 688114 Stock abbreviation: Huada Zhizao Announcement No.: 2023-005

Shenzhen Huada Zhizao Technology Co., Ltd.

2022 Annual Results Forecast

the company's board of directors and all directors to ensure that the contents of this announcement does not exist any false records, misleading statements or major omissions, and the authenticity, accuracy and completeness of the contents of the legal responsibility.

Key Content Tips

●According to preliminary calculations by the company, Shenzhen Huada Zhizao Technology Co., Ltd. (hereinafter referred to as the "Company") is expected to achieve a net profit of 1939 million to 2018 million yuan attributable to the owners of the parent company in 2022. An increase of 1,455.4009 million yuan to 1,534.4009 million yuan, an increase of 300.95 to 317.29 percent year-on-year.

●The company expects to achieve a net profit of 199 million yuan to 269 million yuan after deducting non-recurring gains and losses attributable to owners of the parent company in 2022, which will decrease by 224.0358 million yuan to 294.0358 million yuan compared with the same period last year, and a year-on-year decrease of 45.44 to 59.64.%.

1. performance forecast for the period

(I) performance forecast period

1 January 2022 to 31 December 2022.

(II) performance forecast

(1) According to the company's preliminary calculations, it is expected that the net profit attributable to the owners of the parent company will be 1939 million yuan to 2018 million yuan in 2022, which will increase by 1,455.4009 million yuan to 1,534.4009 million yuan compared with the same period last year, an increase of 300.95 to 317.29 year-on-year.%.

(2) The net profit attributable to the owners of the parent company after deducting non-recurring gains and losses is 199 million yuan to 269 million yuan. Compared with the same period last year, it will decrease by 224.0358 million yuan to 294.0358 million yuan, a year-on-year decrease of 45.44 to 59.64.

(3) This performance forecast has not been audited by a certified public accountant.

2. performance for the same period last year

Net profit attributable to owners of the parent company in 2021 is 483.5991 million yuan; Attributable to owners of the parent company

Net profit after deducting non-recurring gains and losses is 493.0358 million yuan.

3. the main reasons for the change in the performance of the current period.

During the reporting period, the company carried out an all-round layout around the digitization of life, and continued to increase technological and product innovation and research and development in the fields of gene sequencers and supporting equipment, high-density sequencing chip consumables, automated sample processing systems, and remote ultrasonic robots. Investment increased by about 0.2 billion yuan over the same period last year, laying the foundation for subsequent companies to further expand diversified life science and biotechnology markets.

During the reporting period, the company's sales product structure changed, and the gross profit margin decreased by about 10 percentage points compared with the same period last year. The main reason is due to the easing of the supply and demand of equipment and reagent consumables related to the detection of the new crown virus, the company's higher gross margin of product sales structure and price adjustment.

During the reporting period, non-recurring gains and losses increased significantly compared to the same period last year, mainly due to the company and its subsidiaries and Illumina, Inc. Settlement of all pending litigation in the United States, Subsidiary Complete Genomics, Inc. Received Illumina, Inc. $0.325 billion net compensation paid.

4. Risk Alert

This performance forecast is a preliminary estimate based on the company's own professional judgment and has not been audited by a certified public accountant. Up to now, the company has not found any significant uncertainties affecting the accuracy of the performance forecast.

5. Other Notes

The above forecast data is only preliminary calculation data. The specific and accurate financial data is subject to the audited 2022 annual report officially disclosed by the company. Investors are advised to pay attention to investment risks.

It is hereby announced.

Shenzhen Huada Zhizao Technology Co., Ltd.

Board of Directors

January 31, 2023