Shuanghua Holdings Limited provided earning guidance for the year ended 31 December 2022. The board of directors (the "Directors") of the Company informed the shareholders of the Company (the "Shareholders") and the potential investors that, based on the information currently available to the Company and the preliminary review of the unaudited consolidated management accounts of the Group: the Group is expected to record an estimated revenue of approximately RMB 20.4 million for the year ended 31 December 2022, as compared to the revenue of approximately RMB 32.7 million for the year ended 31 December 2021; and the Group is expected to record an estimated net loss after tax of approximately RMB 19.9 million for the year ended 31 December 2022, as compared to the net loss after tax of approximately RMB 18.2 million for the year ended 31 December 2021. The decrease in revenue for the year ended 31 December 2022 was primarily attributable to the lockdown of Shanghai, where the Group was mainly operating in, to control the spread of COVID during the first half of 2022.

During the lockdown, the Group's cold storage and food supply business remained in operation while the automobile parts and other supply chain management businesses were negatively affected by the lockdown. The impact of the lockdown on the businesses continued in the second half of 2022, including but not limited to (i) the diversion of imported cold chain goods entering Shanghai port to other ports, causing a decline in the circulation of cold storage and food supply in Shanghai; and (ii) the significant increase of COVID cases in China after the ease of COVID control measures by the China Government towards the end of 2022, resulting in decrease in economic activity and consumption. Meanwhile, the Group continued to reduce the unprofitable part of the traditional fuel automobile parts business to control its risk exposure.

Despite the aforesaid, the Group has maintained its operation at its best effort to provide goods and services to its customers during the year. The increase in net loss after tax for the year ended 31 December 2022 was primarily attributable to decrease in revenue and increase in provision for impairment.