Beijing Jingkelong Company Limited provided consolidated earnings guidance for the year ended 31 December 2022. For the period, the group expected net loss attributable to the shareholders of the parent company for the year between approximately RMB 90,000,000 to RMB 100,000,000 as compared to the audited net loss attributable to the shareholders of the parent company of RMB 22,474,226 for the year ended 31 December 2021. The Board considers that such increase in the net loss attributable to the shareholders of the parent company is mainly due to: (i) a one-off amortization of improvement expenses in the amount of approximately RMB 23,436,000 in connection with the Group's decision to cease rental of a premises from January 2022 which was mainly used for the operation of a supermarket and to early terminate a lease agreement entered into with the lessor; (ii) the loss on changes in fair value of the financial assets which have been held by the Company's non-wholly subsidiary since April 2018, in the amount of approximately RMB 31,200,000 for FY2022 when compared to the loss on changes in fair value of such financial assets in the amount of approximately RMB 25,559,594 for FY2021, due to the mark-to-market effect.

For details of the said financial assets, please refer to note 8 to the Group's consolidated financial statements for FY2021 contained in the Company's annual report for FY2021 published on 21 April 2022; and (iii) the rentals waived by the Group (as lessor) in an aggregate amount of approximately RMB 53,540,000 (tax inclusive) for FY2022 pursuant to the rental waiver plan adopted by the Group on 27 May 2022 which was determined in accordance with the government policies relating to the mandatory rental waiver for the micro- or small- sized enterprises and individual business operators in the service industries. For details of the said rental waiver plan, please refer to the announcement of the Company dated 27 May 2022.