The board of directors of Confidence Intelligence Holdings Limited informed the shareholders of the Company (the "Shareholders") and potential investors that based on a preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2022 (the "Period"), the Group expects to record a net loss not more than approximately RMB 4.0 million in the Period as compared with the Group's profit of approximately RMB 7.4 million for the corresponding period in 2021. The net loss for the Period was mainly due to: revenue in the Period decreased by approximately 25% to 35% compared with the corresponding period in 2021, which is mainly due to the economic slowdown and disrupted business activities caused by the stricter lockdown measure implemented by the government authorities in response to the resurgence of COVID-19 pandemic in various cities of China; and the gross profit margin for the Period decreased by 3% to 5%, which was contributed by the decrease in the revenue while certain cost of sales is fixed.