Differ Group Auto Limited provided preliminary unaudited consolidated group earnings guidance for the year ended 31 December 2023. For the year, the group expects to record a consolidated net loss of not less than approximately RMB 600 million, as compared with the net loss of approximately RMB 180.4 million for the year ended 31 December 2022. The Board considers that such expected loss is mainly attributable to, among other factors, Increase in impairment loss on finance lease, loan and accounts receivable and other receivables: In the Year 2023, some debtors were unable to repay the Receivables on time due to the economic slowdown in the People's Republic of China (the PRC), which severely impacted their business.

As at the date hereof, the Group has conducted impairment assessment on these receivables and based on the preliminary results, it is expected to record a substantial impairment loss on the Receivables. Write-down of properties held for sales and fair value loss on the investment properties: Due to the economic slowdown and property market collapse in the PRC, the Group expects to write down properties held for sales and record a fair value loss on investment properties for the Year 2023. Decrease of revenue from automobile e-commerce business: During the Year 2023, the Group faced financial difficulties and operated under significant liquidity pressure.

As a result, the Group adopted a prudent approach to operate its automobile e-commerce business, and thus, the revenue generated from the automobile e-commerce business decreased as compared with the Year 2022.