The board of Hong Kong Aerospace Technology Group Limited informed shareholders and potential investors of the Company that, based on the latest information currently available to the Board, the Group is expected to record an estimated net loss of not less than RMB 85,000,000 for the six months ended 30 June 2023 as compared to a net loss of approximately RMB 47,000,000 recorded in the corresponding period of 2022. During the Review Period, the increase in estimated net loss was mainly due to (i) the increase in depreciation expenses on launched satellites and right- of-use assets in the aerospace business, representing the lease for establishment of the Hong Kong satellite manufacturing centre and the Hong Kong satellite operation control and application centre at the Advanced Manufacturing Centre located at Tseung Kwan O Industrial Estate, Hong Kong; and (ii) the decrease in sales in the electronics manufacturing services resulted from the customer churn.