China ITS (Holdings) Co., Ltd. provided earnings guidance for the year 2021. The company expects that the Group will record a profit before taxation of no less than Company expects that the Group will record a profit before taxation of no less than RMB 120.0 million for the Reporting Year, as compared with a loss before taxation of RMB 142.7 million for the year ended 31 December 2020. Profit before taxation increased significantly as compared to the same period last year, which is mainly attributable to (i) a greater growth in gross profit for the Reporting Year as compared with the same period last year due to a significant increase in revenue in the electric power sector and a relatively higher gross profit margin in that sector for the Reporting Year; and (ii) a significant decrease in impairment loss for the Reporting Year as compared with the same period last year.

RMB120.0 million for the Reporting Year, as compared with a loss before taxation of
RMB142.7 million for the year ended 31 December 2020. Profit before taxation increased
significantly as compared to the same period last year, which is mainly attributable to (i) a
greater growth in gross profit for the Reporting Year as compared with the same period last
year due to a significant increase in revenue in the electric power sector and a relatively
higher gross profit margin in that sector for the Reporting Year; and (ii) a significant
decrease in impairment loss for the Reporting Year as compared with the same period last
year.