Wison Engineering Services Co. Ltd. provided consolidated earnings guidance for the six-month period ended June 30, 2022. For the period, the group expects the loss will increase substantially to be between approximately RMB 250 million and RMB 300 million as compared to a loss of approximately RMB 90.83 million for the six-month period ended June 30, 2021.

The expected increase in loss was mainly attributable to, among others, the following reasons: Under constant COVID-19 pandemic prevention and control restrictions and regulations, the progress of the Group's overseas engineering, procurement and construction (EPC) projects has been seriously affected, slowdown and even delay in completion of certain projects were unavoidable, causing decrease in revenue of the Group accordingly. These delay and time overrun in projects have led to an increase in fixed labour cost, subcontracting fee, freight and overhead expense, which lead to decrease in gross profit of the Group. The Group will endeavour to negotiate with the representatives of the project owners to make claims on the company's overrun cost resulted from the unavoidable delay in projects; The decrease in gross profit margin, which is mainly resulted from structural changes in gross profit margin of different contract types; and A new wave of COVID-19 pandemic occurred in the People's Republic of China (the PRC) during the Period.

In response to the COVID-19 pandemic, the PRC government implemented a series of lockdown measures and travel restrictions in the country, which caused disruptions to the Group's marketing development activities, resulting in a decrease in the number of new projects awarded to the Group for the Period.