Shuanghua Holdings Limited provided earnings guidance for the six months ended June 30, 2022. For the period, the group expected to record an estimated revenue of approximately RMB 13.0 million as compared to the revenue of approximately RMB 23.8 million for the same period in 2021; and the Group is expected to record an estimated net loss after tax of approximately RMB 5.8 million as compared to the net loss after tax of approximately RMB 0.6 million for the same period in 2021. The decrease in revenue for the six months ended 30 June 2022 was primarily attributable to the following factors: according to the changes in the market environment and the actual situation, the Group is actively promoting the business transformation and upgrade strategy by actively reducing the unprofitable part of the traditional fuel automotive parts business, and developing the new energy vehicle parts business with potential good profit prospects and sustainable development; and the lockdown in the Group's main business location, Shanghai, due to the coronavirus epidemic, which to certain extent affected the turnover rate and the relevant business development of the Group's supply chain management business.

The increase in net loss after tax for the six months ended 30 June 2022 was primarily attributable to the epidemic in the first half of 2022, which led to the following: the cost of the Group's traditional fuel automotive parts increased, which in turn affected the products profits; and the government's enhanced epidemic prevention and control measures and regulatory requirements have led to an increase in the operating costs of the Group's supply chain management business and delay in the development of relevant businesses, thereby limiting the overall profitability.