The board of directors of IPE Group Limited informed the shareholders and potential investors of the Company that based on the preliminary review of the management accounts of the Group for the five months ended 31 May 2022 and the information currently available to the Board, the net profit after tax of the Company for the six months ended 30 June 2022 is expected to decrease by approximately 45% as compared with the corresponding period in 2021. The decrease in the net profit after tax of the Group was primarily due to: (i) the decrease in revenue arising from the continuous negative impact of the novel coronavirus pandemic on the overall economic environment and the business of the Group in the first five months of 2022; (ii) the increase in production costs resulting from increased unit price of raw materials; and (iii) the decrease in the amount of government grants received during the first five months of 2022.