The board of directors of Great Water Holdings Limited informed the shareholders of the Company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Company for the six months ended 30 June 2021 and the information currently available, the Group expects the net loss after tax for the Interim Period to be not less than RMB 6 million (net loss after tax for the corresponding period in 2020: RMB 12.29 million). The Board of Directors consider that the significant decrease in net loss after tax is mainly due to (1) the increase in the Group's gross profit and gross profit margin in the Interim Period as compared to the corresponding period in 2020 as the Group undertook an one-off short-term operating project and a technical advisory project, each with high gross profit margin; and (2) the absence of approximately RMB 3 million of expenses incurred during the corresponding period in 2020 for upgrading the construction qualification of the Group.