China Sanjiang Fine Chemicals Company Limited provided earnings guidance for the six months period ended 30 June 2022. For the period, the company expects its net loss attributable to equity holders will be in a range between RMB 70 million and RMB 90 million, representing a substantial decrease by more than 120% as compared to the net profit attributable to equity holders of the Company for the 6 months period ended 30 June 2021 of RMB 327.6 million. The expected substantial decrease in net profit attributable to equity holders of the Company was primarily attributable to: the increases in average selling prices of major products namely ethylene oxide ethylene glycol and polypropylene were in a less extent when comparing to the increase in average market price of feedstock, Methanol as a result of the outbreak and global pandemic of the novel coronavirus and certain global emergencies, which led to lower demands from downstream level and higher average market prices of upstream feedstocks; 2) the decrease in overall production capacity due to disruptions in logistics as a result of the outbreak of covid-19 in cities nearby production plants and the related prevention measures; 3) the inclusion of an one-off item in relation to foreign exchange losses of amount RMB 70 million resulted from the depreciation of RMB against USD and the inclusion of an one-off item in relation to the provision for impairment for inventory of amount RMB 30 million.

Despite the abovementioned downsides, the management of the Group is expecting a number of upsides in the second half of 2022, including the expected decrease in average market price of feedstocks, the increase in expected overall production capacity due to the expected improvement of logistic; and the improvement of average selling price of major products due to the expected improvement of demands on major products; The Company is still in the process of finalizing the interim results for the 6 months period ended 30 June 2022. As such, the information contained in this announcement is based on the preliminary assessment by the Board on the unaudited consolidated financial information, which has not been reviewed or audited by the Company's auditors. The interim results of the Group for the 6 months period ended 30 June 2022 is expected to be announced before the end of August 2022.