Sincere Watch (Hong Kong) Limited announced that reference is made to the announcements of the company dated 30 June 2023 in relation to the unaudited consolidated results of the Group for the year ended 31 March 2023 and the delay in publication of the consolidated financial statements of the Group for the financial year ended 31 March 2023. As disclosed in the Announcements, the Company was unable to publish on 30 June 2023 the 2023 Annual Results which shall have been agreed with the auditors of the Company as the Company has been in discussions with the auditors in relation to a material provision in the financial statements of the Company for the financial year ended 31 March 2023. It was disclosed that the Company was working closely with the auditors with a view to completing the audit as soon as practicable on a mutually agreed basis.

Based on the situation at the relevant time, the Company expected to announce the 2023 Audited Annual Results by 31 July 2023. The Company has been working closely with the auditors (together with its advisers), including but not limited to timeously providing additional information, supporting materials or expert advice as requested by the auditors, to address their enquiries regarding the accounting treatment pertaining to the Arbitration. The Company has been providing relevant information to the auditors in order to facilitate the auditors to assess and agree with the Company on the likely exposure of the Group regarding the Arbitration, including without limitation the anticipated outcome of the Arbitration; the potential liabilities of the Group regarding to the Arbitration, including potential cost of the proceedings; and the financial impact to the Group.

The Company will use its best endeavours to complete and finalise the information required for the 2023 Audited Annual Results and shall publish the 2023 Audited Annual Results agreed with the auditors of the Company as soon as practicable. Based on the current situation, the publication of the 2023 Audited Annual Results is expected to be further delayed to the end of August 2023, which is subject to completion of the audit procedures.