Pop Mart International Group Limited announced that based on the information currently available to the Company and the preliminary review by the Board on the unaudited management accounts of the Group for the six months ended 30 June 2022, which have not been reviewed or audited by the independent auditors and/or the audit committee of the Company, it is expected that the Group's revenue for the six months ended 30 June 2022 may increase by no less than 30% as compared with that for the six months ended 30 June 2021 and that the Group's profit for the Period will decrease by no more than 35% as compared to the Corresponding Period Last Year. The Board considers that the change in the Group's operating results is primarily due to the following factors: During the first half of 2022, in response to the resurgence of the COVID-19 pandemic in Mainland China, the Group temporarily closed certain physical stores and roboshops in some areas in compliance with the guidelines and requirements of local governments. As most of the Group's physical stores were concentrated in the first and second tier cities, the operations of the Group for the first half of this year were therefore more vulnerable to the pandemic as compared to the Corresponding Period Last Year; the Group's online sales were also impacted due to the pandemic which affected the timeliness of logistics in some areas; and the performance growth rate of the Group was declined as a significant drop in foot traffic and weakened consumer sentiment due to the pandemic.

As a result of the expansion of the Group's business in the previous period, the expenses increased as compared to the Corresponding Period Last Year, therefore, it is expected that the Group's profit for the Period will decline as compared to the Corresponding Period Last Year. The Group's expenses as a percentage of revenue are expected to decrease in the future as the pandemic is effectively controlled.