ZONBONG LANDSCAPE Environmental Limited provided earning guidance for the year ended 31 December 2022. The Board wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that based on a preliminary review of the unaudited consolidated management accounts of the Group (the "Management Accounts") for the year ended 31 December 2022 ("FY2022") and other information currently available to the
Company, the Group expects to record a consolidated net loss after taxation ranging from approximately RMB 100.0 million to RMB 110.0 million for FY2022 as compared to the audited consolidated net profit of approximately RMB 28.4 million for the year ended 31 December 2021 ("FY2021"). Based on the information currently available to the Company, the consolidated net loss after taxation for FY2022 was mainly attributable to the implementation of control and lockdown measures to combat the Covid-19 outbreak in Changchun city from 11 March 2022, which started to lift around mid of May 2022; and the further implementation of social control measures in Changchun city from 28 November 2022 until December 2022 when the second-wave Covid-19 outbreak re-emerged. As the control and lockdown measures as well as the impact of outbreak mainly occurred during the peak construction season, the construction work of the landscaping and ecological restoration projects for which the Group was engaged in could not be carried out, which was the main reason for an expected decrease in revenue ranging from approximately RMB 240.0 million to RMB 250.0 million and an expected decrease in gross profit ranging from approximately RMB 52.0 million to RMB 62.0 million for FY2022 as compared with FY2021 reported figures respectively. The control and lockdown measures also extended the payment and measurement cycle from project owners, being the main reason for an expected increase in impairment loss on trade and other receivables and contract assets ranging from
approximately RMB 83.0 million to RMB 93.0 million for FY2022 as compared with FY2021 reported figures.