China Youran Dairy Group Limited provided consolidated earnings guidance for the six months ended June 30, 2022. Based on the preliminary assessment of the Group's unaudited consolidated management accounts for the six months ended June 30, 2022 (the "2022 Interim Period") and currently available information, the profit attributable to the equity holders of the Company for the 2022 Interim Period is expected to be approximately RMB 168.3 million to RMB 233.8 million, representing a period-on-period decrease of 75% to 82% as compared with approximately RMB 935.3 million for the six months ended June 30, 2021 (the "2021 Interim Period") and the profit for the period (results before biological assets fair value adjustments) (Note) for the 2022 Interim Period is expected to remain relatively stable as compared with approximately RMB 1,089.9 million for the 2021 Interim Period. As stated above, the Company is expected to record a decrease in the profit attributable to the equity holders of the Company for the 2022 Interim Period as compared to that of the 2021 Interim Period, which is mainly attributable to: (i) a decrease in the gross profit margin of milk for the 2022 Interim Period, which was primarily due to the general increase in the prices of protein feeds, corn, forage grass and other raw materials as well as the slight decrease in the selling price of raw milk in the PRC for the 2022 Interim Period, which was resulted from the pandemic and international situation; (ii) an increase of not less than RMB 900 million in the loss arising from changes in fair value less cost of sales of biological assets, which was primarily due to the increase in the loss arising from changes in fair value of biological assets as a result of the reason described in (i) above; and (iii) an increase in finance costs, which was due to the increase in finance expenses as a result of the expansion of financing scale, which was attributable to the relatively large investment scale in the short term based on the strategic layout of the Company. Despite the decline in profit figures of the Group, benefiting from the expansion of scale and the improvement in operational efficiency and the synergies between the business segments of the Group, the Group is expected to record (i) a revenue of approximately RMB 8,385.5 million to RMB 9,114.7 million for the 2022 Interim Period, representing a period-on-period increase of 15% to 25% (2021 Interim Period: RMB 7,291.8 million); and (ii) cash EBITDA (being earnings
before finance costs, bank interest income, income tax expense, depreciation and amortisation, loss/gain arising from changes in fair value less costs to sell of biological assets, other gains and losses, impairment loss under expected credit loss model, net of reversal and listing expenses) of approximately RMB 1,783.7 million to RMB 1,881.9 million for the 2022 Interim Period, representing a period-on-period increase of 9% to 15% (2021 Interim Period: RMB 1,636.4 million).