Mayer Holdings Limited provided earning guidance for the twelve months ended 31 December 20201. The board of directors of the Company informed the shareholders of the Company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the twelve months ended 31 December 2021 and the preliminary assessment of the information currently available to the Board, the Group expects to record a consolidated loss attributable to owners of the Company for the Period in the amount of about RMB 6,300,000 as compared to a consolidated profit attributable to owners of the Company of about RMB 15,854,000 for the twelve months ended 31 December 2020 (the ‘Last Corresponding Period'). Although the revenue of the Group recorded an increase in the Period as compared to the Last Corresponding Period, the change from profit to loss was mainly attributable to the following factors: revenue in sale of steel products increased primarily owing to an increase in domestic sales of steel pipes, steel sheets and other steel products with a lower profit margin; revenue in urban renewal project planning and consulting with a higher profit margin decreased terribly; and operating expenses increased substantially resulting in a lower profit margin.

In addition, Guangzhou Mayer Corporation Limited, the core subsidiary of the Company engaged in the steel business, recorded a lower profit before interest and tax for the Period when compared with that for the Last Corresponding Period.