China Risun Group Limited provided consolidated earnings guidance for the six months ended June 30, 2023. For the six months, the group expects its net profit for the Current Period to decrease by approximately 55% to 60% as compared to that for the six months ended June 30, 2022. The expected decrease in the Group's net profit for the Current Period was contributed by a number of factors.

Among others, the major cause was the narrowing margin of coke due to a drop in the average prices of coke products from approximately RMB 3,200 per ton for the Last Corresponding Period to approximately RMB 2,400 per ton for the Current Period, while the average price of coke only showed a slight decrease from approximately RMB 1,900 per ton for the Last Corresponding Period to approximately RMB 1,600 per ton for the Current Period. As at the date of this announcement, the price of the Group's coke has returned to over approximately RMB 2,400 per ton. The company believe that the price of coke will become stable in the second half of 2023.

In addition, the average prices of refined chemicals products (mainly methanol and synthetic amine) decreased by approximately 12% and 22%, respectively. During the Current Period, the Group also recognized the impairment of financial assets subject to expected credit loss model and other projects of approximately RMB 43 million (Last Corresponding Period: reversal of impairment by the Group of approximately RMB 32 million).