2022 Performance Forecast of Xinjiang Guotong Co., Ltd.

2023, Xinjiang Guotong Pipeline Co., Ltd. issued a performance forecast for 2022.

The report shows that the net profit loss of Guotong Pipeline attributable to shareholders of listed companies in 2022 is 100 million yuan to 85 million yuan, down 1264.14% to 1089.52% from the same period last year; Net profit loss after deduction of non-recurring profit and loss was RMB150 million to RMB130 million, representing a decrease of 1714.64% to 1499.35% as compared with the same period of last year. In the report,

Xinjiang Guotong Pipeline Co., Ltd. analyzed the reasons for the expected loss of this performance:

affected by the epidemic situation, economic environment and other factors, the business orders of subsidiaries engaged in entity business are insufficient in sustainability, heavy assets, insufficient capacity utilization and high cost. The actual operation of some subsidiaries has been in a loss situation for a long time. Based on the principle of prudence, the Company made provision for credit impairment losses on receivables according to the nature and age of the receivables, which had a significant impact on the net profit of the current period.

The Company estimates that the non-recurring profit and loss in 2022 will be approximately RMB48 million, of which the main impact includes: the gain on disposal of equity of subsidiaries will be approximately RMB54 million, and other profit and loss items that meet the definition of non-recurring profit and loss will be approximately RMB-6 million.