Best Food Holding Company Limited provided preliminary unaudited consolidated group earnings guidance for the six months ended June 30, 2022. For the period, the group expects to record a net loss attributable to equity holders of the Company ranging from approximately RMB 90 million to RMB 110 million, as compared to a net profit attributable to equity holders of the Company of RMB 5 million for the same period last year. As far as the Directors are aware, the expected loss is mainly due to the impact of the COVID-19 pandemic in various cities in the PRC in the first half of 2022, which resulted in certain restaurants ceasing operation or suspending dine-in services for a period of time, but such restaurants still incurred certain fixed operating expenses such as rental expenses and employee remuneration.

The Pandemic eased in June 2022 and the performance of restaurant operation improved significantly month-on-month. The Group will continue to closely monitor the market conditions and implement proactive measures to cut costs. Despite the impact of the Pandemic, the Group will continue to pursue a long-term approach of development by actively enhancing its operational capabilities and efficiency, vigorously developing its franchise business and continuously promoting the construction of a digital system, and on the other hand, fully unleashing the advantages of investment empowerment to assist its invested brands to enhance their corporate value.