Changan Minsheng APLL Logistics Co., Ltd. provided preliminary unaudited consolidated group earnings guidance for the year ended December 31, 2021. For the year, the group expects to record a profit before tax of approximately RMB 50,000,000 to RMB 60,000,000 and an estimated net profit in the range between RMB 25,000,000 and RMB 35,000,000 attributable to owners of the parent company as compared with the year of 2020 which recorded a profit before tax of approximately RMB 23,240,000 and a net profit attributable to the owners of the parent company of approximately RMB 420,000. The board considers that the increase in profit for the year ended December 31, 2021 is mainly attributable to the gradual stabilization of the domestic automobile industry in general which saw annual cumulated automotive sales of 26,275,000 units representing an increase of 3.8%; an increase in the volume of logistics services provided by the group resulting from a year-on-year increase in the automotive sales of Chongqing Changan Automobile Co., Ltd. and its associates, one of the group's long term customers, of approximately 14.82% in 2021 based on the public information disclosed by Changan Automobile; and a more stringent cost control through the group's persistent effort in cost reduction.

Meanwhile, the Company continued strengthening market expansion with certain fruits in which the proportion of non-connected transactions increased. Meanwhile, the company is currently conducting an annual impairment assessment on the conventional material assets of the group. The Impairment assessment is made based on the applicable accounting principles on a prudent basis and is an assessment of the possible negative impact of the Impairment on the profit before tax.

However, the exact accounting impact, such as the amount of the loss on Impairment to be recorded (if any), is yet to be assessed by the company and also subject to review by the auditors of the group.