Sanhe Pipe Pile: It is estimated that the net profit in 2022 will be 130 million to 170 million yuan, with a year-on-year increase of 66.06% to 117.15%.

Sanhe Pipe Pile issued a performance forecast on January 30, predicting that the net profit attributable to shareholders of listed companies in 2022 will be 130 million to 170 million yuan, an increase of 66.06% to 117.15% over the same period last year. The changes in

results were mainly due to the following reasons: during the reporting period, the Company was affected by the epidemic prevention and control policies, the macroeconomic downturn, insufficient funds for infrastructure projects and other factors. In the first half of the year, the downstream projects were underemployed, the market demand was delayed, and the orders of the Company decreased. Suzhou, an important subsidiary, and all members of the board of directors guarantee that the information disclosed is true, accurate and complete, and there are no false records, misleading statements or material omissions. In response to the local epidemic prevention requirements, Sanhe Pipe Pile Co., Ltd. implemented static management and stopped production for a long time, which caused a drag on the performance of the whole year. Although in the second half of the year, with the implementation of a series of national policies to stabilize growth and help enterprises, the market gradually recovered, and the company steadily and orderly promoted the resumption of work and production of Suzhou Sanhe Pipe Pile Co., Ltd., due to the large decline in the first half of the year, the annual operating income did not achieve the expected growth, showing a year-on-year decline. The net profit attributable to the shareholders of the listed company and the net profit after deducting non-recurring gains and losses for the whole year increased significantly as compared with the same period last year due to the following factors:

1. By effectively controlling the cost of raw materials, tapping the internal potential, the

Company continued to implement measures to reduce costs and increase efficiency. The gross profit margin of the products was improved;

2. The Company focused on the principal business, deeply cultivated the front line, continuously strengthened the promotion of new products, increased the sales volume of customized piles and products with stronger profitability used in photovoltaic and other new energy projects, and further improved the profitability of the Company by strengthening the budget control of expenses.

3. The impact of non-recurring profit and loss on net profit for the year is about 16 million yuan to 24 million yuan. During the reporting period, the Company confirmed that the impact of government subsidies on non-recurring gains and losses in the consolidated statements amounted to approximately RMB21.7 million. The impact of non-recurring profit and loss on net profit for the same period of last year amounted to RMB26.3832 million.