The board of directors of GHW International informed the shareholders of the Company and potential investors that, based on a preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2022 and other information currently available to the Board, the Group expects to record a profit attributable to owners of the Company of approximately RMB 170 million for the Current Period, compared to a profit attributable to owners of the Company of approximately RMB 27 million for the six months ended 30 June 2021. Based on the information currently available, the expected profit attributable to owners of the Company for the Current Period was mainly attributable to an increase in gross profit as a result of (i) the good performance in the company's operations in the People's Republic of China due to the increasing average selling prices of some of the company's major products and the company's successful procurement strategies of raw materials; and (ii) a net foreign exchange gain mainly as a result of appreciation of US dollar against Renminbi, which is partially offset by the increase in (i) selling and distribution expenses and administrative expenses due to the increasing operating scale of the Group, the significant increase in shipping and logistics costs and the provision of performance bonus to staff; (ii) research and development expenses incurred from artificial intelligent system transformation projects, production technology enhancement projects, expansion of research and development team as well as rising cost of raw materials; and (iii) income tax expense, which was in line with the increase in profit generated for the Current Period.