Shenghua Lande Scitech Limited provided earnings guidance for the year ended 31 December 2021. For the year, the company expects to record a net profit attributable to owners of the Company from continuing and discontinued operations of approximately RMB665,000 for the Year 2021 as compared to a net profit attributable to owners of the Company from continuing and discontinued operations of approximately RMB5,025,000 for the year ended 31 December 2020, representing an approximately 86.77% decrease. Based on the relevant information currently available to the Company, the Board considers that the anticipated substantial decrease in the net profit attributable to owners of the Company from continuing and discontinued operations for the Year 2021 was mainly attributable to the reasons as mentioned below.

The Group is in the process of developing community marketing services in the field of social e-commerce, and has invested significant costs in the preliminary deployment. However, the new business line has not yet generated significant revenue in the Year 2021. This led to a significant decline in the performance of the relevant business segment for the Year 2021.

Therefore, it is expected that the net profit attributable to owners of the Company from continuing and discontinued operations in the Year 2021 will decrease substantially comparing to last year.