According to the announcement on July 27th, based on the preliminary review of the unaudited consolidated accounts of the Group for the first half of the year, the Board of Directors expects that the Group's net profit for the first half of the year will be no less than 42.5 million yuan, which will be about 84.3 million yuan compared with the same period of last year, the decrease amount will not be more than 41.8 million yuan, and the decrease rate will not be more than 49.6%. The decrease is mainly attributed to the fact that the average unit selling price of the Group's main product of battery material plate, phosphoric iron, has dropped significantly year-on-year due to market fluctuations, resulting in a significant decrease in gross profit of the battery material plate, which has a great adverse effect on the Group's net profit.

Color customer phosphoric iron business has two bases in Hebei and Shandong, iron law process, annual capacity of 80,000 tons.