Zibuyu Group Limited provided consolidated earnings guidance for the year ended December 31, 2022. for the year, the Group expects the net profit would decrease by approximately 40% to 50% when compared with RMB 200.5 million for the year ended December 31, 2021. December 31, 2021.

The expected decrease in net profit was mainly due to the combined effects of the followings: the slowdown in economic activity and persistent inflation in the United States, which imposed negative impact on the spending power and the purchasing habits of customers, resulting in more conservative consumption and increase in total return rate of online sales through third-party e-commerce platform; the increase in marketing and advertising expenses; the increase in selling expenses and distribution cost in relation to third-party e-commerce platform; the increase in employee benefit expenses mainly caused by the increased number of employees for business development and to expand talent reserves for future business expansion; and (v) the one-off listing expenses incurred in 2022.