According to the announcement by China Financial Development (03623), the group is expected to achieve a significant increase in net income during the reporting period (6 months ending on June 30, 2024) compared to the same period last year, with a growth rate of approximately 1763%, and a decrease in the loss during the reporting period compared to the same period last year, ranging from 32% to 42%.

The main reasons for the significant increase in income during the reporting period include: a net income of approximately RMB 14 million from the guarantee business, a significant increase of 702% compared to the same period last year, mainly due to the growth of guarantee services; revenue of approximately RMB 4 million from the hog farming business during the reporting period, a significant increase of 279% compared to the same period last year, mainly due to the increase in hog sales during the reporting period; and the contribution of approximately RMB 35 million from the newly launched energy storage system sales business in December 2023.

During the reporting period, the group's financial performance improved, and the decrease in net loss was mainly due to the comprehensive impact of the following factors: increased income, as mentioned above; significantly reduced operating expenses compared to the same period last year, mainly due to a decrease in the number of eliminated pigs and a decrease in employee costs during the reporting period; a decrease in interest expenses compared to the same period last year, mainly due to the reduction in the principal of convertible bonds during the reporting period; and impairment losses recognized on the properties, factories, and equipment of the hog sales department due to challenges in the industry.