Gome Finance Technology Co., Ltd. provided consolidated earnings guidance for the year ended December 31, 2021. Based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2021 and the information currently available to the board of directors of the company, the Group expected to record an operating profit of approximately RMB 33.5 million for the year ended 31 December 2021, representing an increase of approximately 48% as compared to the operating profit of approximately RMB 22.6 million for the year ended 31 December 2020. Such increase was primarily attributable to the decrease in provision for expected credit loss on trade and loan receivables and other receivables for the Year.

Due to the recognition of an impairment loss of not less than RMB 150 million but not more than RMB 160 million for the Year, the Group expects to record a net loss for the Year in the range of approximately RMB 121 million to RMB 131 million as compared with the profit attributable to the owners of the company of approximately RMB 14.3 million for the year ended 31 December 2020. The Impairment Loss is attributable to the impairment of the prepayment in the amount of RMB 576,000,000 made for the acquisition of 100% equity interest in Tianjin Guanchuang Mei Tong Electronic Commerce Limited.