The board of directors of Zhixin Group Holding Limited informed the shareholders and potential investors of the Company that, based on the preliminary review of unaudited consolidated management accounts of the Company, together with its subsidiaries, and the information currently available to the Group for the year ended 31 December 2021 it is expected that the Group will record a reduction of approximately 70% in the Group's net profit for the Year as compared with the net profit of approximately RMB 62.6 million for the year ended 31 December 2020 despite a slight decrease in revenue as compared to previous year. Such reduction is mainly attributable to: (i) the slight decrease in revenue as a result of temporarily suspension and delays in certain construction projects impacted by the COVID-19 pandemic and increase in days with adverse weather conditions during the Year; and (ii) the significant increase in cost of sales as a result of the global increase in commodity prices such as steel and iron during the Year, which led to the increase in raw material costs and decrease in the gross profit margin of precast concrete component products.