Zhi Sheng Group Holdings Limited provided group earnings guidance for the twelve months ended 30 June 2023. for the period, the Group expects to record an increase of approximately RMB 8.8 million to RMB 14.7 million in loss, or an increase of 12% to 20% in loss attributable to the owners of the Company for the twelve months ended 30 June 2023 as compared to the eighteen months audited year ended 30 June 2022. The significant increase in loss was mainly attributable to: (1) During the Reporting Period, the Company provided an impairment loss on assets of approximately RMB 49.8 million in relation to the pledge of properties such as land and buildings by Sichuan Greenland Furniture Co., Limited, a subsidiary of the Company, to assist Mr. Luo Jinyao (as a borrower) or its subsidiary to obtain the financing; (2) During the Reporting Period, the Company purchased three wealth management products issued by Zhongzhi Enterprise Group () with an aggregate principal amount of RMB 10 million, and the estimated fair value assessment would require provision of approximately RMB 9.5 million due to the higher risk of redemption; For details of items (1) and (2) above, please refer to the relevant announcements published by the Company on 2 June 2023 and 11 August 2023, respectively.

(3) However, part of the loss during the Reporting Period is expected to be offset by the significant decrease in administrative and other expenses and selling expenses during the Reporting Period as compared to the Previous Reporting Period which was mainly attributable to: (i) the equity-settled share-based payment expenses of approximately RMB 3.8 million recognised during the Reporting Period as a result of the grant of the share options in the Previous Reporting Period, representing a decrease of approximately RMB 12.7 million as compared with the Previous Reporting Period; (ii) the share-based payment expenses of approximately RMB 13.8 million derived from the issuance of convertible bonds in the Previous Reporting Period, while there was no such expenses during the Reporting Period; (iii) as the Company has achieved certain results in strengthening daily operation and management, the provision for impairment losses on trade and other receivables and prepayments during the Reporting Period is expected to be lower by approximately RMB 6.0 million as compared with the Previous Reporting Period; (iv) the recognition of expenses for the assessment of impairment of goodwill decreased by approximately RMB 3.5 million as compared to the Previous Reporting Period; (v) other selling expenses and general and administrative expenses of the Company decreased significantly as compared with the Previous Reporting Period due to the extra six-month reporting period of the Previous Reporting Period and the Company's strengthened control of daily expenses and improved operational efficiency.