China Tianrui Automotive Interiors Co., LTD provided earnings guidance for the six months ended June 30, 2022. For the period, the company expected to record a net loss of approximately RMB 10.0 million to RMB 11.0 million, as compared to the net profit of the Group for the six months ended June 30 2021 of RMB 23.8 million. The revenue of the Group is expected to be approximately RMB 75.0 million to RMB 80.0 million, as compared to the revenue of RMB 217.0 million for the six months ended June 30, 2021.

The expected decrease in revenue for the six months ended 30 June 2022 was mainly due to the downturn in the heavy truck market. The sales volume of heavy trucks nationwide for the six months ended 30 June 2022 was 380,000 units, representing a decrease of approximately 63.6% compared with that of the corresponding period in 2021. Since the revenue of the Group is derived primarily from the heavy truck industry, the overall impact on the heavy truck industry has led to a decrease in the revenue of the Group.

The expected loss for the six months ended 30 June 2022 was mainly due to the decrease in revenue as compared to the same period in 2021 while there was no year-on-year decrease in the fixed costs such as depreciation and labor costs.