Wison Engineering Services Co. Ltd. provided consolidated earnings guidance for the year ended December 31, 2021. Based on the preliminary assessment of the Board with reference to the unaudited consolidated management accounts of the Group for the year ended 31 December 2021 and other information currently available to the Board, it is expected that the Group would record the loss for the Year to decrease significantly to not more than RMB 100 million as compared to a loss of approximately RMB 271.5 million for the year ended 31 December 2020.

The estimated narrowed loss is primarily attributable to the good progress being made on the work of engineering, procurement and construction project and an increase in Project volume, resulting in increases in both revenue and gross profit generated from the EPC business during the Year as compared to the year ended 31 December 2020. However, the expected loss was mainly due to (i) the depreciation and amortization expenses of the office building and leasehold land held by the Group; and (ii) the provision for impairment on financial and contract assets of the Group. The Board wishes to emphasis that the above-mentioned depreciation and provision made are non-cash in nature and do not have any impact on the cash flow of the Group.