Shineroad International Holdings Limited informed the shareholders and potential investors of the Company that, based on the review of the information currently available to the Board for the year ended 31 December 2023, the profit attributable to the Shareholders for the Relevant Period is expected to be not more than RMB 21 million as compared with the profit attributable to Shareholders of RMB 47 million for the year ended 31 December 2022. The Board believes such decrease was primarily attributable to: the Group has made a provision of approximately RMB 11 million for the impairment of trade receivables owed by a customer. This prudent decision was made after careful consideration by the management.

Accordingly, the Group is in the course of consulting its PRC legal advisor, and is going to take legal action against the aforementioned customer, the Company will make further announcements as and when appropriate in accordance with the Listing Rules; a decrease in the Group's profits during the Relevant Period of approximately RMB 4.6 million, which was primary attributable to a passive reduction in the Group's shareholding in Tianye Innovation Company which leads to dilution of interests; and a decrease in profit of Tianye during the Relevant Period; and the increase in the costs of foreign currency exchange by approximately RMB 3.7 million due to the devaluation of the Chinese yuan resulting from volatility in the foreign exchange market.