The board of directors of Grace Wine 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 (the "Management Accounts") for the six months ended 30 June 2022, the Group expects to record a profit before tax of not less than RMB 1.7 million in second quarter of 2022, as compared to a profit before tax of approximately RMB 6.7 million for the six months ended 30 June 2021. The decline in performance is mainly attributable to a decrease in revenue due to the overall drop in sales volume of the Group's wine products as a result of the ongoing impact of the resurgence of Coronavirus Disease 2019 in the People's Republic of China.