Jiashili Group Limited provided consolidated earnings guidance for the six months ended June 30, 2022. For the period, the board of directors of the Company based on its preliminary review of the Group's unaudited consolidated management accounts for the six months ended 30 June 2022 (Current Period), it is expected that the Group will record a decrease of approximately 98% to 108% in the consolidated net profit for the Current Period as compared to a consolidated net profit of RMB 102 million recorded in the corresponding period last year. The decrease in consolidated net profit during the Current Period was mainly due to: the complex and difficult business environment faced by the Group during the Current Period as affected by the onslaught of the resurgence of the COVID-19 pandemic with the spread of highly contagious Omicron variant and pandemic-induced mobility restrictions with adverse impacts on the economy in China has resulted in weakened consumer spending sentiment in leisure snack foods; substantial increase in production costs as a result of the rising costs of the raw materials (palm oil, sugar, flour and packaging materials), particularly the price of palm oil has increased in more than 55% from the Previous Period.

Although the Group has adopted the strategies for raising prices for its products, the price increase in some products cannot fully compensate the rise in costs and expenses, which led to unfavorable impacts on the consolidated net profit of the Group; and a net of other losses is expected to be recorded due to the reversal gains of impairment loss on prepayments (Reversal Gains) of approximately RMB 75 million no longer exists in the Current Period whereas the Reversal Gains was recorded in the Previous Period.