Labixiaoxin Snacks Group Limited provided unaudited earnings guidance for the six months ended June 30, 2022. For the period, the group expected to record a total sales of approximately RMB 348.6 million as compared to the total sales of approximately RMB 361.4 million for the six months ended 30 June 2021 and a net loss of approximately RMB 4.9 million for the six months ended 30 June 2022 as compared to the net profit of approximately RMB 27.5 million for the six months ended 30 June 2021. Based on the information currently available to the Board, the Board considers that such decreases were primarily attributable to a decrease in sales and gross profit margin due to temporary cessation in production and operation of our Jinjiang subsidiary in March and April 2022 as a result of COVID-19 pandemic outbreak and the increase in the costs of certain major raw
materials; no gain in disposal of properties during the six months ended 30 June 2022 (six months ended 30 June 2021: RMB 13.4 million); and a loss on disposal of asset classified as held for sale of approximately RMB 20.9 million in the six months ended 30 June 2022 (six months ended 30 June 2021: Nil).