Wison Engineering Services Co. Ltd. provided consolidated earnings guidance for the year ended 31 December 2023. For the period, the company expected that the Group's loss for the Year will decrease significantly to not more than RMB 200 million as compared to a loss of approximately RMB 1,197.4 million for the year ended 31 December 2022.

The estimated narrowed loss is primarily attributable to the following reasons: i. in 2022, the Company's performance was affected by the Coronavirus Disease 2019 (COVID-19) and the corresponding control measures and restrictions, which resulted in the postponement and delay of some projects, casusing additional labor costs and project costs. The impact of the above-mentioned factors has been reduced in the Year, and the gross profit margin has gradually returned to normal level; and affected by the unfavourable economic environment, the recoverability risk of receivables was therefore increased and a larger amount of impairment loss on receivables was recognized in 2022, but the overall recoverable risk has decreased during the Year.