Huili Resources (Group) Limited provided earnings guidance for the six months ending June 30, 2022. For the period, the company expects to record a net profit of not more than approximately RMB 21 million for the Period, against the net loss of approximately RMB 7.2 million for the six months ended 30 June 2021 (the Prior Period). The Board considers that the expected significant increase in profit for the Period is mainly attributable to the following factors: due to the strong coal demand in the domestic coal market in the first half of 2022, the average selling prices of the Group's coal products increased during the Period as
compared with the Prior Period; the increase in sales volume of the Group's coal product during the Period as compared to the Prior Period; the contribution from the Group's newly acquired company, Shanxi Fanpo Clean Energy Technology Company Limited; the unrealized foreign exchange gain from the financial assets denominated in USD and HKD as the result of the appreciation of USD and HKD against RMB, being the Group's functional and presentation currency; and the effective stringent cost controls continuously implemented by the Group.