Perennial Energy Holdings Limited provides earnings guidance for the six months period ended 30 June 2022. The net profit after tax of the Group for the Relevant Period is expected to increase substantially by not less than approximately 300% as compared to RMB 85.5 million for the corresponding period of 2021. Such expected increase was mainly attributable to the following factors: despite a drop in the production volume of the Group's coal products as interrupted by small faults in the Group's coal work faces, driven by increase in average selling price of clean coal, a strong growth of revenue and gross profit margin were recorded for the Relevant Period as compared with the corresponding period of 2021; and for the corresponding period of 2021, a significant fair value loss of contingent consideration payables amounted RMB 133.8 million, which is related to the acquisition of Xiejiahegou Coal Mine in 2020, was recognized since the projected performance of the Xiejiahegou Coal Mine exceeded the Profit Guarantee.

However, only a minimal amount of fair value loss of contingent consideration payables is expected to be recognized in the Relevant Period, representing additional payment pertaining to the Group's overall cap amount after assessing the likelihood in meeting the Profit Guarantee for the year ending 31 December 2022.