D&G Technology Holding Company Limited provided earnings guidance for the six months ended June 30, 2022. For the period, the company expected that the Group will record a net loss attributable to owners of the Company between approximately RMB 2 million and RMB 6 million, as compared with a net profit attributable to owners of the Company of approximately RMB 8 million in the last corresponding period. Such expected net loss was mainly attributable to the decrease in revenue and gross profit and the increase in provision for inventories due to the resurgence of Coronavirus Disease 2019 that led to the Chinese government's implementation of travel restrictions and lockdowns in the major cities of China since March 2022, which had affected the Group's business activities and deliveries, and the increase in the selling and distribution costs.

Although transportation restrictions in China have been gradually lifted in June 2022, there were still some delays in customers' acknowledgements of implementation of asphalt mixing plants, resulting in the Group not being able to recognise the revenue of certain contracts in the first half of 2022. During this period, the Company has launched marketing activities in promoting its newly rolled out modular models to the market, which resulted in the increase in selling and distribution costs.