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China Heart-to-Heart expects its net profit for the first half of 2022 to increase by 40% to 50% on a year-on-year basis. Author/Source: Xinjiang Heart-to-Heart Energy Chemical Co., Ltd. Date: 2022-07-08 Clicks: 10 China Heart-to-Heart Fertilizer Co., Ltd. (1866.HK) is pleased to announce that it expects its net profit for the six months ending June 30, 2022, to be between RMB 1.245 billion and RMB 1.334 billion, representing an increase of RMB 356 million to RMB 445 million compared with the same period last year, or a year-on-year growth rate of 40% to 50%. The increase in net profit is mainly due to the following factors: 1. With the commissioning of the group’s new Xinxiang compound fertilizer multi-functional tower project, rare gas purification project, and the renovation and expansion of Tianxin Coal Mine, the industrial chain has been upgraded, leading to a diversification of related products. This has enhanced the group’s advantage of having multiple revenue streams that can be adjusted flexibly, thereby maximizing its profitability ； 2. The group makes full use of the advantages of its industrial parks, integrates high-quality resources, continuously optimizes its product portfolio, boosts the promotion of high-efficiency fertilizers and advances research and development of new technologies, thereby enhancing its core competitiveness and further strengthening its advantages in terms of low costs and product differentiation to create greater profit margins ； 3. The international energy shortage, limited capacity for new production, and a tight supply-demand balance, coupled with rising food prices, have driven up sales and prices of fertilizers and chemical products, thereby benefiting the group’s main products such as urea, compound fertilizers, and methanol. The aforementioned profit forecast figures are based on the board’s preliminary assessment, which takes into account the data currently available to the company’s management (including the group’s management accounts); they have not yet been reviewed or audited by accountants, and may be adjusted following further review. Therefore, the above data is provided solely for reference by shareholders and potential investors.