China Risun Group Limited provided earnings guidance for the December 31,2023. For the year, Group expects its net profit for the Year to decrease by not more than 55% as compared to that for the year ended December 31, 2022 due to a number of factors, including: a drop in the selling prices of the Group's coke products during the Year. In particular, the average selling price for the Year decreased by approximately 28% as compared to that for the Last Year.

Despite the decrease of approximately 20% of the Group's coal purchase prices during the Year as compared with that of the Last Year, the margin of the Group's coke products still narrowed by approximately 40%. They believe that the selling prices of the Group's coke products will be stable in 2024 as they hold a positive view of China's economic growth in 2024, as well as in the medium-term, and as expected by the International Monetary Fund, China will continue to be the vital engine of global economic growth. an increase of approximately 800,000 tons in the production volume of the Group's refined chemical products for the Year as compared to that for Last Year.

Production costs also dropped. As a result, the net profit of the refined chemical products (mainly caprolactam) improved during the Year. the recognition of impairment losses on property, plant and equipment and credit impairment losses of more than approximately RMB 70 million by the Group for the Year (Last Year: write-back of impairment: RMB 88 million).