Zhixin Group Holding Limited provided group earnings guidance for the six months ended June 30, 2022. For the period, the company is expected that the Group will record a reduction in the Group's net profit for the Relevant Period to a profit or loss close to breakeven as compared with the net profit of approximately RMB 10.2 million for the six months ended June 30, 2021. Such reduction is mainly attributable to: the slight decrease in revenue as a result of temporarily suspension and delays in certain construction projects impacted by the increase in days with adverse weather conditions during the Relevant Period; the increase in cost of sales as a result of the increase in raw material costs and transportation costs; one-off compensation expense for the early termination of the lease of precast concrete components production plant located in Jimei District of Xiamen and the disposal loss of the production facilities on this leased property subsequent to the successful acquisition of the land use rights of a parcel of land for construction of new production plant; and the decrease in non-recurring government grants and awards during the Relevant Period.