Honghua Group Limited provided unaudited consolidated earnings guidance for the six months ended June 30, 2023. The Group expected that the loss recorded by the shareholders of the company for the six months ended 30 June 2023 will decrease significantly by over 50% as compared with the loss recorded by the shareholders of RMB 523.38 million for the six months ended 30 June 2022. This decrease in loss was mainly due to the lift of the pandemic and the recovery of the international energy market, leading to an increase in overseas revenue.

However, due to the relatively high fixed costs of the Company, which could not be covered by the increase in revenue, as well as laying the foundation of the asset impairment provision, the Company recorded a net loss.