The board of directors of the Angelalign Technology Inc. announced that based on the preliminary assessment of the Group' s currently available unaudited management accounts and the latest information available to the Company, it is expected that: (1) the Group's total revenue for the six months ended June 30, 2022 is ranging from approximately RMB 542.4 million to RMB 570.9 million, representing a change of approximately -5.0% to 0% as compared to approximately RMB 571.0 million for the six months ended June 30, 2021; (2) the Group's gross profit for the six months ended June 30, 2022 is ranging from approximately RMB 314.8 million to RMB 331.4 million, representing a decrease of approximately 12.2% to 16.6% as compared to approximately RMB377.6 million for 2021 first half; and (3) the Group's net profit for the six months ended June 30, 2022 is ranging from approximately RMB 66.1 million to RMB 69.6 million, representing a decrease of approximately 27.3% to 30.9% as compared to approximately RMB 95.7 million for 2021 first half. The Board believes that the above changes are primarily due to the following reasons: In the first half of 2022, due to the resurgence of the COVID-19 pandemic in mainland China and the government's related control and restrictive measures, the operations of clinics and hospitals in certain related areas and cities were temporarily suspended or restricted, and the market demand for clear aligner treatment services was also negatively affected. The number of the Group's case shipments1 in the six months ended June 30, 2022, declined to approximately 77,200 (2021 H1: approximately 79,500); and An increase in its operating expenses in the six months ended June 30, 2022 as compared to that in 2021 H1, mainly as a result of the Group's implementation of its business strategy to penetrate and expand into emerging markets and overseas markets, as well as its continuous investment in marketing activities.

The Company believes that such upfront investment and expenses will benefit and drive its business performance and growth in the future. With the government's effective control over the pandemic and the resumption of the dental services business, it is noted that the market demand for clear aligner treatment services has been gradually recovering. The Company remains confident in the future development of China's clear aligner markets with low penetration rate and high growth potential.

The Company will continue to firmly implement its business strategy, including continuously expanding and penetrating into emerging markets and overseas markets, to further strengthen the Company's leading position in the industry.