ZONBONG LANDSCAPE Environmental Limited provided group earnings guidance for the six months ended 30 June 2022. The Board informed the shareholders of the Company and potential investors that based on a preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2022 and other information currently available to the Company, the Group expected to record a loss of not less than RMB 40.0 million for the six months ended 30 June 2022 as compared to a profit after taxation of approximately RMB 16.5 million for the corresponding period in 2021. Based on the latest assessment by the Board, the Board further supplemented that: due to the control and lockdown period occurring during peak construction season, construction work could not be carried out, and also as the tendering process has been delayed, the newly awarded contracts in the six months ended 30 June 2022 has decreased as compared to that of the corresponding period in 2021.

As a result, the revenue for the six months ended 30 June 2022 is expected to decrease in the range of approximately RMB 134.0 million to RMB 137.0 million (representing a decrease of approximately 37.0% to 37.8%), as compared with the amount of approximately RMB 362.1 million recorded for the corresponding period in 2021, hence the gross profit is expected to decrease in the range of approximately RMB 43.0 million to RMB 46.0 million (representing a decrease of approximately 53.0% to 56.7%) as compared with the amount of approximately RMB 81.2 million recorded for the corresponding period in 2021; and (ii) the control and lockdown measures also extended the payment and measurement cycle from project owners. The impairment loss on trade and other receivables and contract assets for the six months ended 30 June 2022 is expected to increase in the range of approximately RMB 32.0 million to RMB 35.0 million (representing an increase of approximately 238.8% to 261.2%) as compared with the amount of approximately RMB 13.4 million recorded for the corresponding period in 2021.