Hengxin Technology Ltd. provided unaudited consolidated earnings guidance for the six months ended 30 June 2023. The company expected to record an increase in the unaudited profit attributable to equity shareholders of the company of the Reporting Period by approximately 40% to 85% to a range between approximately RMB 42,300,000 and RMB 55,900,000 compared to that of the corresponding period in 2022. The Board considered the increase in the unaudited profit attributable to equity shareholders of the Company was mainly attributable to (i) the overall increase in revenue and gross profit margin and (ii) a general decrease in the operating expenses for the telecommunications business segment during the Reporting Period as compared with the corresponding period in 2022.

In particular, the overall increase in revenue and gross margin during the Reporting Period is mainly due to contribution from the newly formed business segment of digital technology and digital security during the second half of 2022.