Sprocomm Intelligence Limited provided consolidated earnings guidance for the six months ended June 30, 2022. For the six months, the Group expects that it will record a net profit ranging from approximately RMB 6.0 million to approximately RMB 9.0 million as opposed to a net loss of RMB 34.1 million for the six months ended 30 June 2021. The turnaround from loss to profit for the six months ended 30 June 2022 is mainly attributed to the improvement of the Group's gross profit margin from approximately 7.4% for the six months ended 30 June 2021 to approximately 12.5% for the six months ended 30 June 2022.

The improvement in the gross profit margin resulted from (i) the decrease in the costs of major raw materials; and (ii) the appreciation of USD against RMB during the six months ended 30 June 2022.