Trans-China Automotive Holdings Limited provided earnings guidance for the half year ended June 30, 2022. The Company announced that, following a preliminary assessment of the unaudited financial results of the Group for 1H2022 that is currently available to the Board of Directors, the unaudited profit for the period for 1H2022 is expected to be lower as compared with unaudited profit for the period for half year ended 30 June 2021 ("1H2021"). This is mainly attributable to: The softening of PRC economy and premium car market.

Although the Chinese GDP grew by 2.5%, the Chinese premium car market fell 14.0% in the first half of 2022 compared with the first half of 2021. A number of large cities where TCA's dealerships are located in had implemented COVID-19 control measures for a significant period in the first half of 2022. The implementation control measures has hurt local economies and increased the inconvenience for the Company's customers to visit the dealerships, which led to lower automobile sales revenue and lower automobile sales gross margins as compared to 1H2021.

The situation was significantly different compared to 1H2021. The Chinese macro environment was especially buoyant in the first quarter of 2021 due to the strong demand recovery after the COVID-19 crisis abated, which the Company booked a record profit in 1H2021. The Company opened new Guangzhou Genesis dealership in Guangzhou and recorded operating costs for store opening in 1H2022.

There was foreign exchange losses on foreign deposits in 1H2022 compared with foreign exchange gains on foreign deposits in 1H2021.