According to the Zhitong Finance App, Huabao International (00336) announced that the group's profit before tax for the five months ending May 31, 2022 is expected to be around RMB 407 million (excluding impairment of goodwill and changes in the fair value of unlisted equity investments (financial asset listing measured at fair value and the change included in profit and loss), if any), down about 27% compared to the same period last year.

During the first five months of 2022, the resurgence of the novel coronavirus pneumonia in some provinces and cities in China and changes in the international situation led to a decrease in market demand and an increase in raw material costs. Coupled with changes in the Group's product structure, the Group's comprehensive gross margin declined. As a result, the Group's pre-tax profit (excluding impairment of goodwill and changes in the fair value of unlisted equity investments) declined.