Haina Intelligent Equipment International Holdings Limited provided consolidated earnings guidance for the year ended December 31, 2022. The group is expected to record a net loss of not more than RMB 8.0 million for the year ended 31 December 2022 as compared with the net profit of approximately RMB 26.3 million for the year ended 31 December 2021. The Board is of the view that the expected loss is mainly due to the decrease in gross profit margin caused by the significant increase in the cost of raw materials and labour cost of the Group; provision of impairment loss on bond receivables and unrealised fair value loss in equity instrument.

To tackle the market fluctuations, the Group will continue to make the best endeavour to reduce the adverse impact from the increased costs and expenses through centralized procurement, technology innovation and product upgrades.