China Starch Holdings Limited provided earnings guidance for the six months ended June 30, 2022. FOr the six months, the company expected to record a substantial growth in profit before taxation by not less than 100% as compared to the corresponding period in 2021. The Board believes that the substantial increase in the Group's profit before taxation for the Period is mainly attributable to the following factors: (i) The strong market demand for various products, especially lysine products; (ii) The increase in the selling prices of some of the Group's products during the Period to compensate the increase in the Group 's costs in raw materials, as a result of the expected shortage of commodity supply; and (iii) The reduction in the Group's production costs during the Period, in light of the Group's use of more automated production machinery.

Although the Group is expected to record a satisfactory result for the Period, the Board has a cautious business outlook on the third quarter of 2022. The market momentum has started to vanish since June 2022. The management of the Company will continue to manage the inventory level and working capital effectively.