Xinjiang Tianye Water Saving Irrigation System Company Limited provided unaudited consolidated earnings guidance for the year ended December 31, 2023. For the period, the company expects record an estimated net loss of RMB 10,000,000 to RMB 12,000,000 for the Reporting Year (a net loss of approximately RMB 81,410,000 was recorded for the financial year ended 31 December 2022 (FY2022)). Compared with the figures disclosed in the Announcement (i.e. the estimated net profit of RMB 3,000,000 to RMB 5,000,000 expected to be recorded during the Reporting Year), the change was mainly because: (i) in order to objectively and fairly present the financial position and operating result of the Group for the Reporting Year, the Company engaged an independent valuer to issue the preliminary draft of the Valuation Report for impairment test of fixed assets with indicator of impairment, resulting to an increase of asset impairment loss; and (ii) the expected gross profit of certain engineering projects of the Group declined based on latest settlement statement.

The main reason for the decrease in the loss recorded by the Company for the Reporting Year as compared with FY2022 has been disclosed in the Announcement, and the Company has no additional information for the reasons.