China Ocean Group Development Limited announced that as mentioned in the Announcements, with the implementation of the tightened COVID-19 prevention and control quarantine measures and local lockdown arrangements in Hong Kong and the PRC respectively since March 2022 and up to present, thus disrupted the Group's initial schedule and audit progress. As such, the auditing process for the 2022 Audited Annual Results has not been completed as the schedule stated in the Announcements, which was originally expected that 2022 Audited Annual Results and the 2022 Annual Report will be published no later than 3 August 2022. The Company is still in the process of obtaining certain information to be provided to the auditor of the Company (the "Auditor") to complete the audit procedures.

As part of the audit process, the Auditor requested to interview some of the suppliers and customers of the Company, however, due to the continuous implementation of the COVID-19 related prevention, control and quarantine measures in the relevant cities of the People's Republic of China (the "PRC"), substantial delays were encountered in arranging those interviews. Besides, the temporary suspension of express delivery services in the PRC lead to delay in certain confirmation procedures which also lead to delay in collecting certain confirmation from the customers and suppliers of the Group in the PRC by the Auditor, which is also one of the key matters to complete its audit procedures. Due the above-mentioned conditions, the annual audit of the Company was still being affected.

As such, the unaudited consolidated financial statements of the Group may still be subject to potential adjustments and finalisation during the remaining audit procedures.