Precision Tsugami (China) Corporation Limited provided preliminary unaudited consolidated group earnings guidance for the six months ended 30 September 2023. For the period, the group expects to record a profit attributable to the owners of the Company of approximately RMB 220 million, representing a decrease of approximately 27% as compared to the profit attributable to the owners of the Company of approximately RMB 300 million (unaudited) for the six months ended 30 September 2022. Based on the information currently available, the Board believes the deterioration in financial performance of the Group 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 intensified international geopolitical conflicts and domestic macroeconomic downturn.

In addition, the Board believes the performance of the machine tools industry continued to experience fluctuating 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 2023, and was not uncontemplated by the Company.