Precision Tsugami (China) Corporation Limited provided preliminary unaudited consolidated group earnings guidance for the six months ended 30 September 2022. For the period, the group expects to record a profit attributable to the owners of the Company of approximately RMB 300 million, representing a decrease of approximately 21% as compared to the profit attributable to the owners of the Company of approximately RMB 380 million (unaudited) for the six months ended 30 September 2021. Based on the information currently available, the Board believed that such decrease was mainly attributable to the decrease in demand for computerised numerical control high precision machine tools (the CNC high precision machine tools) manufactured by the Group because of various macroeconomic uncertainties, including those caused by intensified international geopolitical conflicts and the resurgence of the coronavirus disease (COVID-19) in the People's Republic of China, which severely affected the production activities in certain economically developed regions.

In addition, the Board believes the performance of the machine tools industry was experiencing downward adjustments during cyclical changes, which contributed to the anticipated decrease of the profit attributable to the owners of the Company for the six months ended 30 September 2022, and was not uncontemplated by the Company. Notwithstanding the above, the Company will continue to enhance its production efficiency, reduce costs and broaden the application uses of the CNC high precision machine tools and further expand its sales network to increase its sales in China. Despite challenging market conditions and having considered the interests of all Shareholders, the Company strives to maintain a stable dividend policy.