China Water Industry Group Limited provided unaudited consolidated earnings guidance for the six months ended 30 June 2022. for the period, the group is expected that despite the Group may record a slight increase in revenue, net profit for the period is expected to be not more than approximately HKD 8.00 million for the First Half of 2022 as compared to the net profit for the period of approximately HKD 111.72 million for the six months ended 30 June 2021 (the ``First Half of 2021''). Furthermore, the Group also expected to record a loss attributable to owners of the Company for the First Half of 2022 of not more than approximately HKD 28.00 million as compared to profit attributable to owners of the Company approximately HKD 69.51 million in the corresponding period in 2021.

Comparing with the First Half of 2021, the Board considers that such decrease in net profit which resulted in a loss attributable to owners of the Company in First Half of 2022 was mainly attributable to, among others:(i) completion of the disposal of 51% equity interests held in the Yingtan Water Supply Group Co. Ltd. together with its subsidiaries (the ``Yingtan Water Group'') in 2021, of which financial results of Yingtan Water Group were no longer consolidated to the consolidated financial results of the Group in the First Half of 2022 (ii) the depreciation of Renminbi which attributable to an exchange loss in the First Half of 2022; (iii) the absence of gain on disposal of 20% equity interests in Yingtan Water Group which was recorded in the First Half of 2021; and (iv) absence of net gain on financial assets at fair value through profit and loss in the First Half of 2022 as compared to the First Half of 2021.