China Weaving Materials Holdings Limited provided preliminary unaudited consolidated group earnings guidance for the ten months ended 31 October 2022 and the year ending 31 December 2022. For the ten months, the group expects to record a consolidated revenue and consolidated net loss of approximately RMB 1,164 million and RMB 5 million, respectively.

As such, it is expected that the Group may record a substantial decrease in its consolidated net profit or a consolidated net loss for the year ending 31 December 2022 as compared to that for the year ended 31 December 2021. The consolidated revenue and consolidated net profit of the Company for the year ended 31 December 2021 was approximately RMB 1,724 million and RMB 204 million, respectively. The expected decrease in the consolidated net profit or a consolidated net loss of the Group for the Year is mainly attributable to the decrease in gross profit resulting from decrease in revenue and decrease in gross profit margin of the Group's yarn products.