China Tianrui Automotive Interiors Co., LTD provided earnings guidance for the year ended 31 December 2022. For the year, the company expects to record a net loss for the year ended 31 December 2022 of approximately RMB 25.0 million to RMB 28.0 million, as compared to the net profit of the Group for the year ended 31 December 2021 of approximately RMB 7.3 million. The revenue of the Group is expected to be approximately RMB 160 million to RMB 180 million for the year ended 31 December 2022, as compared to the revenue of approximately RMB 296 million for the year ended 31 December 2021.

The expected decrease in revenue for the year ended 31 December 2022 was mainly due to the fact that the sales volume of heavy trucks nationwide for the full year of 2022 was 672,000 units, representing a decrease of 723,000 units compared with that of 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 year ended 31 December 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.

Under the accelerated adjustment of the industry, the Group will utilise the strategic response of "breakthrough reconstruction, system support, and win-win development", actively promote internal standardized management, steadily expand business of the Group by serving more customers in both passenger and commercial vehicle decorative product market, maintain the existing market share and explore potential market, and continue to consolidate leading position of the Group in the largest heavy truck market in Northwest China.