Zhengye International Holdings Company Limited provided earnings guidance for the year ended 31 December 2023. The company expected to record approximately RMB 15 million to RMB 20 million, as compared to the profit attributable to equity holders of the Company of RMB 47.16 million for the year ended 31 December 2022 (the "Corresponding Period Last Year"). The loss attributable to equity holders of the Company was mainly due to the weakening of China's domestic consumption demand and export factors.

The continuous decrease in the Group's product price as a result of the effect brought by the serious imbalance between supply and demand in the paper and paper-based industry in the first half of 2023, the sales revenue of the Group decreased significantly by approximately 18% to 22% as compared with the Last Year. The excessive energy costs incurred by the predominant use of natural gas in the first half of 2023, the Group's paper manufacturing sector recorded its first annual operating loss. In the second half of 2023, the market experienced a turnaround, resulting in an overall increase in the Group's product sales revenue.

Simultaneously, the Company invested in steam supply of biomass boilers to reduce energy costs. The profitability significantly improved in the second half of the year.