Ko Yo Chemical (Group) Limited provided consolidated earnings guidance for the six months ended June 30, 2022. The Board wishes to inform the shareholders and potential investors of the Company that based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2022, the Group is expected to record a net profit of approximately RMB 226 million for the six months ended 30 June 2022, representing an increase of approximately 46.8% as compared to a net gain of approximately RMB 154 million recorded for the same corresponding period last year. The significant increase in net profit of the Group is
mainly attributable to the increase in the gross profit margin of the Group's products. The increase in average price of chemical products and chemical fertilisers for the six months ended 30 June 2022 as compared with the same corresponding period last year were driven by the increase in prices of crude oil and crude oil-related raw materials, have led to the increase in the selling price of the Group's products and the gross profit margin of the Group's products. The average gross profit margin of the Group's products for the six months ended 30 June 2022 is expected to be approximately 30.9% whereas the average gross profit margin of the same period last year was approximately 21.6%.