Puxing Energy Limited provided unaudited consolidated earnings guidance for the six months ended 30 June 2022. For the period, the group is expected to record a decrease of approximately 38% to 48% as compared to the corresponding period of last year. The Board considers that such expected decrease is mainly due to (i) the cut in capacity tariff with effect from 1 January 2022 (details of which have been disclosed in the announcement of the Company dated 7 October 2021 and the 2021 annual report of the Company) which resulted in a decrease in capacity tariff income of the Group of approximately RMB28.6 million for the six months ended 30 June 2022 as compared to the corresponding period of last year; (ii) the significant increase in production volume by natural gas power generating units of the Group for the six months ended 30 June 2022 as compared to the corresponding period of last year under the exacerbation of cost inversion of natural gas power generation (i.e. the cost of natural gas power generation per unit is higher than the volume tariff of natural gas power generating units per unit) caused by the increase in fuel cost for power generation in the first half of year 2022; and (iii) the absence of the expected full implementation of the electricity spot market trading by Zhejiang Province Development and Reform Commission in the first half of year 2022.