The board of directors of China ITS (Holdings) Co., Ltd. informed the shareholders of the Company and potential investors that, based on the preliminary assessment of the Group's unaudited consolidated management accounts for the six months ended 30 June 2023 and the information currently available to the Company, the Company expects that the Group will record a profit attributable to the owners of the parent of not less than RMB 55,000,000 for the Interim Period as compared to a loss attributable to the owners of the parent of approximately RMB 6,000,000 for the corresponding period in 2022. The turnaround of the Group's results from loss to profit was mainly attributable to (i) the significant increase in gross profit during the Interim Period as compared to the corresponding period in 2022; and (ii) a gain on fair value changes of financial assets during the Interim Period, as compared to a significant loss on fair value changes of financial assets during the corresponding period in 2022 due to the market volatility.