Sinosoft Technology Group Limited provided preliminary unaudited group earnings guidance for the year ended 31 December 2022. For the year, the group expects to record a loss and total comprehensive expenses of not less than RMB 100 million, as compared to a profit and total comprehensive income of approximately RMB 15 million for the year ended 31 December 2021. Based on the information currently available to the Board, the decline in the overall financial results of the Group for the year ended 31 December 2022 was principally attributable to the recurring waves of the Coronavirus disease 2019 (the COVID-19) pandemic which have caused government departments at all levels to partially suspend their informalization plans in order to focus on combating the COVID-19, and therefore affected the demand for the Group's products; further provision for impairment losses on trade receivable made by the Group in the worsening economic environment; and the impairment of intangible assets due to business strategy adjustments.

Nevertheless, the Group has made market-driven deployments and integrated resources to focus on research and development of potential government informalization products, laying a solid foundation for future development.