China Qinfa Group Limited provided unaudited consolidated earning guidance for the year ended 31 December 2022. For the period, the company Group for the year ended 31 December 2022, the Group is expected to record a profit after taxation of not more than RMB 500 million during the year ended 31 December 2022 as compared with a profit after taxation of RMB 3.19 billion for the year ended 31 December 2021. The change in the Group's financial performance for the year is mainly attributable to: COVID lockdown on transportation infrastructure causing a decrease in the Group's sale volume by over 60% in the fourth quarter of 2022 as compared to fourth quarter of 2021; the absence of reversal of impairment losses on property, plant and equipment and coal mining rights of RMB 2.3 billion for the year ended 31 December 2022, as compared to such reversal being made for the year ended 31 December 2021; an increase in the depreciation of property, plant and equipment and amortisation of coal mining rights for the year ended 31 December 2022 due to significant reversal of impairment losses on property, plant and equipment and coal mining rights as at 31 December 2021; and a decrease in net gain on the substantial/non-substantial modification of borrowings from approximately RMB 238.7 million for the year ended 31 December 2021 to approximately RMB 42.5 million for the year ended 31 December 2022.