Sanhe Pipe Pile 2022 Performance Forecast

2023, Guangdong Sanhe Pipe Pile Co., Ltd. issued a performance forecast for 2022.

The report shows that the net profit attributable to shareholders of listed companies is 130 million yuan to 170 million yuan, up 66.06% to 117.15% over the same period last year; Net profit after deduction of non-recurring profit and loss was RMB106 million to RMB154 million, representing an increase of 104.23% to 196.71% as compared with the same period of last year.

Sanhe Pipe Pile analyzed the reasons for the changes in the results in the report:

during the reporting period, the company was affected by the epidemic situation, provention and control policies, macroeconomic downturn and insufficient funds for infrastructure projects. In the first half of the year, the downstream projects were insufficient, the market demand was delayed, and the company's orders 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. Under the circumstance that the operating income of the

Company fell short of expectations, 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. The Company continued to implement cost reduction and efficiency improvement measures, which improved the gross profit margin of the products;

2. The Company focused on the core business, deeply cultivated the front line, continued to strengthen 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 annual non-recurring gains and losses on net profit is about 16 million 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 about 21.7 million yuan. The impact of non-recurring gains and losses on net profit in the same period

last year amounted to 26.3832 million yuan.