China Titans Energy Technology Group Co., Limited provided consolidated earnings guidance for the year ended 31 December 2022. For the year, the company Group is expected to record a net loss attributable to owners of the Company in the range of approximately RMB 17 million to RMB 20 million as compared to the net profit attributable to owners of the Company of approximately RMB 18.6 million in the corresponding period in 2021. The reason of turnaround from profit to loss position of the Group was mainly attributable to, among other factors, (i) the increase in costs and selling expenses by approximately 7.8% to RMB 290.7 million, as compared to the costs and selling expenses of approximately RMB 269.6 million for the corresponding period in 2021; and (ii) the impairment losses of financial assets amounting to approximately RMB 12.9 million for the year ended 31 December 2022 as compared to a reversal of impairment losses of financial assets amounting to approximately RMB 12.4 million for the corresponding period in 2021.

The increase in costs and selling expenses were mainly due to the increases in (i) cost of raw materials; and (ii) installing and testing expenses. The impairment losses on financial assets were mainly due to COVID-19.