Shanghai Realway Capital Assets Management Co., Ltd. provided for the unaudited consolidated earnings guidance of the Group for the six months ended 30 June, 2022. For the period, the group is expected to record a net loss of not less than RMB 10.0 million for the Period as compared to the net profit of approximately RMB 0.8 million recorded for the six months ended 30 June 2021. The expected change from profit to loss in the Group's results is mainly due to the decrease in the regular management fees received by the funds managed by the Group during the Period as compared to the same period last year.

In the first half year of 2022, there had been outbreak of the COVID-19 pandemic in multiple cities in China, and a two-months lockdown was implemented in Shanghai, the Group's principal place of business, to contain the Pandemic. As a result of the negative impact, the disposal of existing projects invested by the Group's managed funds was not as fast as expected, and the Group ceased to receive regular management fees from certain funds which entered into liquidation. In addition, the Group adopted a more prudent investment strategy due to the sluggish performance of the real estate market in the first half of the year, which, together with the Pandemic control measures, resulted in the hindrance of new business expansion and thus no new investment projects were acquired during the Period.

The combination of the aforementioned factors resulted in a decrease in the gain of the regular management fees recorded by the Group of approximately RMB 11.0 million as compared to the same period last year.