Jiashili Group Limited provided earnings guidance for the year ended 31 December 2022. For the year ended 31 December 2022 is expected to be in the region of RMB 51 million to RMB 58 million, representing a decrease of 50% to 56% as compared to the profit attributable to owners of the Company of approximately RMB 115 million for the year ended 31 December 2021. Such a decrease was mainly due to: (i) the complex and difficult business environment faced by the Group for the year of 2022 as affected by, among others, 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; (ii) substantial increase in the production costs as a result of the rising costs of raw materials (include palm oil, sugar, flour) in 2022.

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 input costs of raw materials, which as a result lead to a decline in gross profit of approximately RMB 16.7 million as compared with the year ended 31 December 2021; (iii) a non-recurring reversal gain on impairment loss on prepayment of approximately RMB 75 million was recorded for the year ended 31 December 2021; and (iv) an increase in impairment provision on the Group's certain loans and receivables of approximately RMB 20 million under expected credit loss model for the year ended 31 December 2022 due to unfavourable economic conditions in China.