Texhong International Group Limited provided earnings guidance for the year ended 31 December 2022. The company expected that the net profit of the Group will record a significant decrease of more than 90% as compared to the net profit of the Group of approximately RMB 2.7 billion for the year
ended 31 December 2021. The decrease in net profit of the Group was mainly attributable to the decrease in raw
materials prices and product selling prices and a weaker market demand for yarns in 2022 as
compared to 2021. In addition, certain foreign exchange loss arising from the depreciation of
Renminbi is expected to be recorded for the year ended 31 December 2022.