Sinosoft Technology Group Limited provided earnings guidance for the six months ended 30 June 2023. For the period, based on the preliminary assessment of the unaudited management accounts of the Group for the period and the information available to the Board as at the date of this announcement, the Group is expected to record a loss and total comprehensive expenses of not less than RMB 50 million for the period, as compared to the profit and total comprehensive income of approximately RMB 2.5 million for the six months ended 30 June 2022. Based on the information currently available to the Board, the decline in the overall financial results of the Group for the six months ended 30 June 2023 was principally attributable to decreased demand for traditional government information products due to clients' tight budget in information technology under the difficult economic environment and further impairment losses on accounts receivable made by the Group.

Nevertheless, the Group has adjusted its deployment according to the market condition, laying a solid foundation for future development.