The board of directors of CN Logistics International Holdings Limited informed the shareholders of the Company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2023 and other information currently available, the Group expects to record a net profit attributable to equity shareholders not less than HKD 13 million for the Relevant Period as compared to the net profit attributable to equity shareholders of approximately HKD 51.2 million for the corresponding period in 2022. Despite facing headwinds in view of the uncertainty in the global economy, the Group is still profitable and its profitability remain robust, among its competitors in the logistics market. The expected decrease in revenue and net profit attributable to equity shareholders of the Company for Relevant Period was mainly attributable to the following reasons: (a) the decline of sales in the PRC and Hong Kong, which, in turn, was attributable to the adverse effects of post COVID-19 to logistics industry in the PRC and Hong Kong market, being the drop in freight rate and slow market recovery; (b) the decrease in freight rates charged to customer and sales volume due to decrease of demand for air freight and sea freight services from the key customers in CN Logistics S.R.L; and (c) the uncertainty in macroeconomic environment.