The board of directors of China Art Financial Holdings Limited provided earnings guidance based on a preliminary review by the Board on the latest unaudited consolidated management accounts of the Group, which have not been reviewed or audited by the independent auditors and/or the audit committee of the Company, and taking into consideration of the information currently available to the Board, the Group is likely to record a reduction in net profit for the year ended 31 December 2023 in the range of 30% to 40% as compared to the corresponding period in 2022 which recorded a net profit of approximately RMB 14.6 million. The expected reduction in profit is mainly attributable to decrease in the interest revenue from art and asset pawn business, and increase in operating expenses of the Group.