The board of directors of the Goodbaby International Holdings Limited informed the shareholders and potential investors of the Company that based on the preliminary assessment of the Group's currently available unaudited management accounts, it is expected that the Group will record a decrease in net profit attributable to equity holders of the Company for the year ended 31 December 2021 by a % ranging from approximately 45% to 55% as compared with that for the year ended 31 December 2020. The decrease in net profit was primarily attributable to a decrease in gross profit margin while the Group kept positive revenue growth momentum. The decrease in gross profit margin was primarily due to: dramatic increase in all logistic costs including sea freight, inland and transfer cost, and shortage of logistic capacity; substantial increase of input costs of key raw materials; and weaker foreign exchange rates, especially Euro and U.S. dollar against the Chinese Renminbi, partially offset by the Group's products price increase, production-side cost efficiency improvement and hedging arrangement.