Tianyun International Holdings Limited provided earnings guidance for the fiscal year ending December 31, 2021. For the period, the company expected that despite the fact that the revenue and gross profit for the Reporting Period would increase by approximately 27.1% and 25.4% respectively as compared with that of the corresponding period in 2020, the Group would incur a net loss of not more than RMB 5 million (2020: net profit of approximately RMB 149.1 million). The substantial decrease was primarily due to the one-time losses of approximately RMB 179 million in connection with the deconsolidation of certain subsidiaries.

Despite the expected net loss during the Reporting Period, the Board believes that the Group has solid fundamentals, with a healthy balance sheet and stable cash flows. The recovery of the overall sales of the Group has been continuously improving.