Tianjin Tianbao Energy Co., Ltd. provided unaudited consolidated earnings guidance for the year ended December 31, 2023. The Group is expected to record an operating revenue of approximately RMB 785,003,000 for the Review
Period, representing an increase of approximately 10.0% as compared to the same period in 2022; record a profit for the year of approximately RMB 2,670,000, representing a significant decrease of approximately 84.6% as compared to the same period in 2022; and profit attributable to equity shareholders of the Company of approximately RMB 258,000, representing a significant decrease of approximately 96.7% as compared to the same period in 2022. The Board considers the significant decrease in profit for the Review Period despite the increase in operating revenue of the Group is mainly attributable to the continued high coal price in 2022. As an enterprise that guarantees supply and people's livelihood in the Tianjin Port Free Trade Zone, in order to ensure the stable supply of regional energy, the Group bore the additional cost of steam prices that were not fully linked to the cost of purchasing coal from January to August 2022. Accordingly, a price subsidy of approximately RMB25,969,000 was approved by the PRC local government authorities to the Group in 2022 for the steam supply business, which was charged to the profit for that year. In 2023, the Group has implemented a price linkage mechanism to achieve full linkage between the sales price of steam and the cost of coal purchase and gas purchase, and the business has returned to profitability. The construction of Lingang Thermal Power' s gas distributed energy station project of the Group has been completed in 2023. The power generation part of the project is in the early stage of operation, and the overall project has not yet reached the level of revenue for stable operation. In addition, the Group's self-developed and acquired distributed photovoltaic projects in 2023 are still under construction or in the handover stage and have not yet contributed to the Group's operating results. In summary, the Group continued to improve its own operation and management, expanded new energy business, and relied on its own operation to achieve profitability without receiving government subsidies in 2023.