Trans-China Automotive Holdings Limited provided earning guidance for six-month period ended 30 June 2023. The Board of Directors updated shareholders following the voluntary business update for 1st quarter ended 31 March 2023, and provide shareholders with a profit warning for the six-month period ended 30 June 2023 ("1H2023"). Following a preliminary assessment of the unaudited financial results of the Group for 1H2023 that is currently available to the Board of Directors, the Company is expected to report a net loss compared with a net profit for the six-month period 30 June 2022 ("1H2022").

This is mainly attributable to: The Chinese economy is soft. The Chinese economy stalled in the second quarter after a short-lived rebound following the relaxation of COVID-19 controls in the first quarter. Key macro-economic gauges such as factory activity, unemployment and housing sales in the first five months have been below expectations leading to economists revise downwards the Chinese economic growth estimates1.

The slow economy has led to weak consumer sentiment including large expenditure such as car purchases.