GCL New Energy Holdings Limited provided earnings guidance for the six months ended 30 June 2022. For the period, the company expects to record a net loss of not less than RMB 300 million as compared to the net profit of approximately RMB 180 million for the corresponding period last year. The net loss was mainly due to (i) a significant scale-down and decrease in profitability arising from solar power plants projects due to the disposal of Projects as a result of the Group's transformation to an asset-light business model.

The aggregate installed capacity of the solar power plants held by the Group substantially decreased from approximately 3 GW as at 30 June 2021 to approximately 900 MW as at 30 June 2022 as compared to the corresponding period last year; and (ii) the exchange loss of approximately RMB130 million caused by the appreciation of USD against RMB for USD denominated indebtedness during the Period.