Jilin Province Chuncheng Heating Company Limited provided earnings guidance for the year ended 31 December 2022. For the period, the company estimated that the net profit attributable to the equity holders of the Company would be approximately RMB 110 million to RMB 120 million, as compared to approximately RMB 123 million for the year ended 31 December 2021, representing a decrease of approximately 2.4% to 10.6%. The aforementioned estimated decrease is primarily due to (i) the impact of continued increases in coal prices; and (ii) there was a sudden outbreak of novel coronavirus (``COVID-19 Epidemic''') in Changchun City from early March to early May 2022.

During the prevention and control period of the COVID-19 Epidemic, the government required an extension of heat supply for seven days, the Company's heat supply to customers increased accordingly, which resulted in a significant increase in the cost of heat supply in 2022.