The board of directors of the Alpha Era International Holdings Limited announced that based on the preliminary review of the unaudited comprehensive management accounts of the Group for the year ended 31 December 2021 and the currently available financial information of the Company, compared with the same period in 2020, the Group expects to record a net loss arributable to shareholders of not less than approximately RMB 1 million for the year, compared with a net profit attributable to shareholders of approximately RMB 23.56 million for the year ended 31 December 2020. In the opinion of the Board, the net loss is mainly due to (i) the orders received from some major customers in the current year had a lower profit margin; (ii) the increase in the purchase price of materials in the current year; and (iii) no relief of contribution to retirement benefits scheme allowed by the PRC government in 2021; and (iv) additional impairment losses on financial assets under the expected credit loss model and impairment losses on related property, plant and equipment.