Beijing Jingcheng Machinery Electric Company Limited announced that according to the preliminary estimate made by the finance department of the Company, the net profit attributable to the shareholders of the listed company for the first half ended June 30, 2024 is expected to record a loss of RMB 3 million to RMB 3.6 million, representing a decrease in loss of approximately RMB 26.09 million to approximately RMB 26.69 million as compared with that for the corresponding period of last year. The net profit attributable to the shareholders of the listed company after deducting the non-recurring profit or loss for the first half of 2024 is expected to record a loss of RMB 12.7 million to RMB 13.3 million, representing a decrease in loss of approximately RMB 18.53 million to approximately RMB 19.13 million as compared to the corresponding period of last year. The Company is expected to record a loss in the results for the period due to the major reasons as follows: Traditional products in the export business of the gas storage and transportation segment still faced greater downward pressure, resulting in a decline in revenue from certain products; competition in the domestic market was fierce, with a decline in revenue from cryogenic products, while the market for new products, such as hydrogen energy, was still in the cultivation stage, with growth in demand falling short of expectations.

In order to enhance its core competitiveness and develop the market, the Company increased its investment in the research and development of new products, the layout of the industrial chain and market development, resulting in a year-on-year increase in expenses during the period as compared to the corresponding period of last year, the overall results of the Company for the period were therefore a loss, but the loss was reduced as compared to the corresponding period of last year.