Hanhua Financial Holding Co., Ltd. provided Group earning guidance for the year ended 31 December 2021. The Group is expected to record a decrease in net profit for the Current Year by approximately 40% to 50% as compared with the net profit for the year ended 31 December 2020. Based on the information currently available, such decrease in net profit of the Group for the Current Year is expected to be mainly attributable to the effect of the following factors: (i) affected by the epidemic and changes in the market environment, financing needs of customers have declined, market risks have risen and the Company has taken the initiative to scale down certain traditional businesses and increase impairment reserves; (ii) in view of the comprehensive impact of the microfinance business market environment, regulatory policies and other aspects, in order to optimize resources and improve asset efficiency, the Company has scaled down its microfinance business, and the scale of microfinance business has declined; (iii) increased investment in digital technology and reserve of talent due to acceleration of the Company's digital transformation.