Tianli Holdings Group Limited provided unaudited consolidated group earnings guidance for the year ended 31 December 2022. For the year, the group is expected to record a decrease of not less than 30% in revenue as compared to the year ended 31 December 2021; and a loss of approximately RMB 60.0 million to approximately RMB 80.0 million attributable to the Shareholders as compared to a profit of RMB 68.9 million attributable to the Shareholders for the year ended 31 December 2021. Such change from profit to loss were primarily caused by the following factors: for the Group's multi-layer ceramic capacitors segment, (i) the impact of macroeconomic fluctuations, the resurgence of the pandemic and logistics disruptions, resulting in sluggish consumer electronics markets such as mobile phones and PCs, combined with downstream manufacturers and agents clearing inventory, causing the sales price and volume of consumer- grade MLCC products to fall, resulting in a decrease in total revenue.

Meanwhile, the decrease in production volume led to an increase in unit costs and a decrease in gross profit margin; (ii) in order to accelerate product upgrading and transformation, the Group further increased its R&D investment in 2022, especially in the R&D investment of automotive-grade and industrial-grade products; (iii) the Group has built new production bases in Chuzhou and Dongguan respectively, and the construction of new production bases to a certain extent increased operating costs. Moreover, for the Group 's investment and financial services segment, due to the market conditions, including exchange rate fluctuations and the impact of pandemic, the fair value of certain fund investments has decreased.