Henan Jinma Energy Company Limited provided earnings guidance for the six months ended June 30, 2023. For the period, the board of directors of the Company announced that, based on a preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2023, the Group is expected to record an approximate 85% - 90% decrease in its total comprehensive income attributable to the owners of the Company for the six months ended 30 June 2023, as compared with the Profit for the six months ended 30 June 2022. Such an estimated decrease in the Profit is primarily attributable to the following reasons: the decrease in gross profit of the coke segment due to the continue narrowing of the margin as the price of coke continued to adjust at a faster pace than coal (being the raw material of coke), and the operation of phase 1 of the new approximate 1.60 million tons coking furnace (which commenced at the end of 2022) being in its tuning stage in the first half of 2023, resulting in a lower coal-coke conversion ratio, which in turn impacted the cost of coke production and the approximate 30% decrease in the average selling price of liquefied natural gas in the first half of 2023 as compared to the very high price in the same period in 2022 driven by geopolitical conflict.

With the production and sales of the Group expected to remain steady for the second half of 2023, the ease of pressure on coking gross margin, the improvement of the coal-coke conversion ratio from the continuing process tuning of the approximate 1.60 million tons coking furnace, and the estimated improvement of LNG price in the second half of 2023, it is estimated that the Profit for the second half 2023 will improve, and it is expected that the Company will continue to observe its established dividend policy.