China New Energy Limited provided earnings guidance for the year ended 31 December 2022. For the year, the company expects to record a net loss after taxation of ranging from approximately RMB31 million to approximately RMB52 million for the year ended 31 December 2022 as compared to a net profit after taxation of approximately RMB7.8 million for the year ended 31 December 2021. The net loss for the year ended 31 December 2022 was mainly due to the decrease in revenue and increase in impairment losses on trade receivables, contract assets and other receivables.

During the year, the operation of the Group continued to be interrupted adversely by the multiple outbreaks of the COVID-19 across China, which led to the customers' low willingness to place contracts for construction of their new plants, and hence this limited the revenue. The stagnant economy in the mainland China had also impacted the customers' ability to settle the bills promptly, which as a result gave rise to the increase in the impairment losses above mentioned.