Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited provided earnings guidance for the six months ended 30 June 2022. For the six months, the company expected to record a consolidated net profit of not less than RMB 100 million for the 1H2022 as compared to the audited consolidated net loss of RMB 94.4 million recorded for the year ended 31 December 2021 and the unaudited consolidated net loss of RMB 41.7 million for the six months ended 30 June 2021. Such net profit was mainly due to the combined effect of (i) the contribution of profits from the sales of steel pipes of both Zhuhai and Lianyungang production bases, the core business of the Group; (ii) the recognition of property sales of Phase II of Golden Dragon City Fortune Plaza () by the Group, (iii) the decrease in finance cost due to a decrease in average loan balance and interest rate, and (iv) the gain on resumption of land use rights for the six months ended 30 June 2021 but nil amount in 1H2022.

This positive profit alert is based on the Company's preliminary review of the management accounts of the Group for the 1H2022, which have neither been audited, confirmed nor reviewed by the Company's auditors or the audit committee of the Company as at the date of this announcement. Shareholders of the Company and potential investors are advised to peruse the financial results for the 1H2022 with care when it is released. Detailed financial information of the Group for the 1H2022 will be disclosed in the interim results announcement of the Group for the 1H2022, which is expected to be published on 30 August 2022.