Ko Yo Chemical (Group) Limited provided consolidated earning guidance for the year ended 31 December 2023. Based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 December 2023, the Group is expected to record a net loss of approximately RMB 152 million for the year ended 31 December 2023, a decrease of approximately RMB 354 million as compared to a net profit of approximately RMB202 million for the year ended 31 December 2022. The major reason for the net loss in year 2023 was the decrease in the gross profit margin of the Group's products.

The increase in natural gas price and the decrease in average selling price of chemical products and chemical fertilizers for 2023 as compared to last year resulted in a decrease in gross profit margin of the Group's products. The average gross profit margin of the Group's products for 2023 is expected to be approximately 10.9% whereas the average gross profit margin of last year was approximately 24.7%.