The board of JiaChen Holding Group Limited informed the shareholders of the Company and potential investors that based on the preliminary review of the unaudited financial results of the Group for the six months ended 30 June 2023 and the information currently available to the Board, the net profit of the Group attributable to the owners of the Company for the Period is expected to reduce by not less than 50% as compared to that of approximately RMB 6.7 million for the six months ended 30 June 2022. The Board believes that the significant reduction in the net profit attributable to the owners of the Company for the Period was primarily attributable to: (i) decrease in the sales revenue of the Group for the Period by not less than 8% as compared to that of approximately RMB 95.3 million for the six months ended 30 June 2022 due to the slowdown in economic activities in the commercial building construction industry in the People's Republic of China; and (ii) reduction in the gross profit margin for the Period by not less than 3 percentage points as compared to that of approximately 22.5% for the six months ended 30 June 2022.