Haina Intelligent Equipment International Holdings Limited provided unaudited consolidated earnings guidance for the year ended 31 December 2021. For the year, the group is expected to record a decrease in unaudited consolidated net profit attributable to owners of the company for the year ended 31 December 2021 of not more than 50% as compared to the audited consolidated net profit attributable to owners of the company of approximately RMB 40.0 million in the corresponding period in 2020. This was mainly attributable to: an increase in production cost as a result of increase in raw materials costs and a decrease in demand of medical disposable face mask machines and no medical disposable face mask machines sold by the Group for the year ended 31 December 2021 as compared with 235 units of medical disposable face mask machines sold for the year ended 31 December 2020.

The effect of this decrease was partially offset by the increase in revenue derived from the sales of baby diapers, adult diapers, lady sanitary napkins and underpad machines during the year ended 31 December 2021. The Group is still in the course of preparing and finalising the unaudited financial results for the year ended 31 December 2021. The contents of this announcement are of preliminary nature based on the information currently available to the Company.