Xinchen China Power Holdings Limited provided preliminary unaudited consolidated group earnings guidance for the year ended 31 December 2022. For the year, the group expects to record a loss before tax of approximately RMB 110.73 million as compared to a loss before tax of approximately RMB 399.66 million for the year ended 31 December 2021. The decline in loss is mainly attributable to a decrease in provision for impairment loss in relation to the Group's certain trade receivables based on the expected credit loss model.

The Board would like to emphasize that all the impairment losses are non-recurring in nature, non-cash items and have no impact on the Group's daily operations and cashflow.