Xin Yuan Enterprises Group Limited provided earnings guidance for the six months ended June 30, 2021. For the period, the company expected that, as compared to a net profit of approximately USD 5.0 million for the six months ended June 30, 2020, the Group is expected to record a decrease in net profit, ranging from 65% to 75% for the six months ended June 30, 2021. The Board considers that the drop in the net profit for the Reporting Period was primarily attributable to the following reasons: in the six months ended 30 June 2020, the Group received a one-off compensation of approximately USD 1.3 million from the early termination of the charter agreement in respect of a vessel of the Group (details of which was disclosed in the announcement of the Company dated 31 December 2019). The revenue of the Group during the Reporting Period decreased as compared to that of the six months ended 30 June 2020 due to the absence of such compensation; the decrease in revenue due to the off-hire during dry-docking and the increase in dry- docking cost as two of the Group's vessels were required to dry-dock for passing the renewal survey every five years and one of the Group's vessels was required to dry-dock for passing the intermediate survey every two to three years during the Reporting Period, respectively; the increase in crew expenses during the Reporting Period due to the impact of COVID-19; and the increase in the cost of repair and the off-hire due to the delay in shipping schedule as a result of a vessel of the Group carried out an temporary voyage repair in Japan instead of Shanghai during the Reporting Period due to Shanghai's epidemic control measures.