MEGAIN Holding (Cayman) Co., Ltd. provided earnings guidance for the year ended December 31, 2023. The board of directors informed the shareholders of the Company and potential investors that, based on the preliminary assessment on the unaudited consolidated management accounts of the Group for the year ended 31 December 2023 and other information currently available to the Board, the Group is expected to record a decrease in net profit attributable to owners of the Company by approximately 47% to 52% during Fiscal Year 2023 as compared with the net profit attributable to owners of the Company for the year ended 31 December 2022. The decrease in net profit attributable to owners of the Company for Fiscal Year 2023 is mainly attributable to the following factors: (i) the decrease in the overall gross profit margin of the Group due to the decrease in the gross profit margin of compatible cartridge chips as a result of keen competition of the compatible cartridge chips industry for the fiscal year 2023; (ii) the increase in selling and distribution expenses of the Group for Fiscal Year 2023 due to the resumption of face-to- face business interactions with target customers; and (iii) the increase in other expenses of the Group for the fiscal year 2023, mainly due to the written-off of materials.