Gronghui Haisheng Science (688366.SH) announced on July 29 that the net profit attributed to the owner of the parent company in 2022 is expected to be 65 million yuan to 78 million yuan, a decrease of 166.0228 million yuan to 153.0228 million yuan compared with the same period last year, or 71.86% to 66.24% compared with the same period last year.

The net profit attributable to the owner of the parent company after deducting non-recurring profits and losses is expected to be 50 million to 60 million yuan in 2022, a decrease of 170.9875 million yuan to 160.9875 million yuan compared with the same period last year, or 77.37% to 72.85% compared with the same period last year.

The main reasons for the decline in the company's performance in the first half of 2022 compared with the same period last year include: (1) since February 2022, Shanghai and its surrounding cities have experienced a severe COVID-19 epidemic, which has significantly affected the production of the company and its three subsidiaries in the Shanghai area. until the epidemic slowed down in early June, Shanghai gradually lifted the global static management, and the company's production was gradually and fully restored. Although the company actively organizes production and delivery on the basis of epidemic prevention, minimizes the impact of the epidemic, and strives to make up for it in June, as a whole, compared with the same period last year, the operating income of the company and its subsidiaries in Shanghai is still lower than that of the same period last year, resulting in a decline in gross profit and a shutdown loss of more than 90 million yuan.

(2) in the same period last year, the company received dividends of about 25.69 million yuan from Shenwu No.1 investment products, but did not receive such dividends during the reporting period.

(3) during the reporting period, the distribution agreement between the company's American subsidiary Aaren Scientific Inc. ("Aaren") and the original exclusive domestic distributor was terminated, the domestic sales channels of the Arui brand IOL products produced by Aaren were reintegrated, and the management of the company thought that the Aaren business showed signs of impairment and conducted an impairment test. According to the impairment test results, the total impairment loss on the goodwill and intangible assets of Aaren business is about 25 million yuan.

(4) during the reporting period, due to the implementation of the equity incentive plan, the company and some subsidiaries paid a total of RMB 15 million for amortization of shares, which did not exist in the same period last year.