Weichai Power Co., Ltd. provided preliminary unaudited consolidated group earnings guidance for the six months ended June 30, 2022. For the period, the group expects to record approximately RMB 2,251 million to RMB 2,573 million in the net profit attributable to the shareholders of the parent, representing a decrease of approximately 60% to 65% as compared with that for the six months ended 30 June 2021. In the first half of 2022, in view of the downward pressure of the macro-economy and the industry, the Group had sped up its structural reformation, and while its traditional advantageous businesses continued to occupy a stable share of the market, its strategic new businesses had started to gain momentum.

However, the repeated outbreaks of Covid-19 resulted in impeded logistics and weakened demand in heavy duty truck industry, and in the first half of 2021 the industry sales base reached the historical peak, which contributed to the substantive decrease of industry sales volume in the first half of 2022 and the relatively large downturn of the performance of the Company's heavy duty trucks related businesses compared with the same period last year. In the meantime, factors including the global surge in prices of raw materials and energy resources, the tightening of supply chain and the impact of geopolitical conflicts, resulted in an increased pressure over the costs of relevant overseas subsidiaries of the Company and the profits decreased when compared with that of the same period last year. Affected by the abovementioned factors, the performance of the Group for the six months ended 30 June 2022 suffered a larger year-to-year decline.

In light of the above, the net profit attributable to the shareholders of the parent for the six months ended 30 June 2022 is expected to record a decrease of approximately 60% to 65% as compared with that for the six months ended 30 June 2021.