Weiqiao Textile Company Limited provided unaudited group earnings guidance for the year ended December 31, 2021. For the period the company expects increase of approximately 200% in the net profit of the group for the year ended December 31, 2021 as compared to the net profit recorded for the year ended December 31, 2020. Driven by the overall increase in the demand for textile products as consumption in the domestic and overseas textile and apparel markets gradually recovered, the sales volume of the group's main textile products recorded a year-on-year increase, and the sales price for the year also increased as compared to that for year 2020; also, the net profit of the group was at a low level for year 2020 due to the adverse impacts brought by the COVID-19 pandemic during that period, and as to the electricity business of the group, on one hand, the sales volume of electricity for the
year decreased as compared to that for year 2020 due to the decrease in demand for electricity by the downstream customers as a result of the pandemic on the other hand, the production costs of electricity lagged behind the timing of sales price of electricity adjusted according to the established electricity pricing mechanism due to the fluctuations in the prices of coal, which was used as main raw material, during the Year. Due to the combined effect of the aforesaid factors, the Group recorded a substantial decrease in the gross profit generated from sales of electricity for the Year as compared to that for year 2020, but still continued to maintain steady profitability.