Xinji Shaxi Group Co. Ltd. provided earnings guidance for the six months ended 30 June 2022. It is expected that the net profit attributable to the Shareholders for the 2022 Interim Period recorded by the Group would be not less than RMB 12.0 million but not more than RMB 20.0 million as compared to the net profit attributable to the Shareholders of approximately RMB 53.1 million (restated)* in the corresponding period in 2021.

The Board considers that the above expected decrease in the net profit attributable to the Shareholders is primarily attributable to the decrease in the fair value gains on investment properties held by the Group, mainly as a result of the adjustment made in the valuation of the shopping malls due to the overall decrease in demand in the market, which was caused by the continuous impact of the pandemic in various regions on the market due to the Omicron variant of COVID-19.