Datang Environment Industry Group Co., Ltd. provided consolidated earnings guidance for the year ended December 31, 2023. For the period, the group is expected to record a profit after tax ranging from approximately RMB 416 million to approximately RMB 564 million as compared to the profit after tax of approximately RMB 238 million for the year ended 31 December 2022. The estimated increase in profit after tax of the Group for the year ended 31 December 2023 is primarily attributable to the following reasons: Increased profits from the Group's environmental protection facility concession operations: The implementation of various measures by the Group to improve quality and efficiency has led to a decreased consumption of major raw materials such as desulphurisation agents and denitrification reductants, combined with a reduction in the unit purchase price of these materials, resulting in lower costs for the environmental protection facility concession operations.

Reduced losses in the Group's engineering businesses: This is mainly due to an increase in the amount of new contracts signed by the Group for environmental protection facility engineering, waterworks engineering and renewable energy engineering projects, coupled with higher gross profit margins. As a result, there has been an increase in revenue and gross profit for the Group's engineering businesses.