Shandong Fengxiang Co. Ltd. provided unaudited consolidated earnings guidance for the year ended December 31, 2023. The group is expected to record a net profit of approximately RMB 140 million to RMB 160 million as compared to the audited consolidated net loss of approximately RMB769 million for the year ended 31 December 2022.

The board of directors of the Company believes that the expected turnaround in profit in 2023 was mainly attributable to (i) the advantages of systematic development of the Group's multi-channel penetration and the continuous growth in revenue from the export business and major customer business; and (ii) increased production efficiency and lower costs due to the refined management of the Group's management and all employees.