Chengdu SIWI Science and Technology Company Limited informed the shareholders of the Company and potential investors that, based on the preliminary assessment of the unaudited management accounts of the Group for the six months ended 30 June 2023 and information currently available to the Board, the Board expects to record a net profit attributable to the owners of the Company of approximately RMB 0.64 million for the Period as compared to a net profit attributable to the owners of the Company of approximately RMB 4.2 million for the six months ended 30 June 2022. The decrease in net profit attributable to the owners of the Company was mainly attributable to (i) an increase in compensation costs resulting from negotiated termination of labour contracts for certain staff pending for duties; and (ii) the fact that the Company is not yet eligible to benefit from the preferential tax policies of property tax and land use tax during the Period.