The board of directors of the Zhonghua Gas Holdings Limited informed the shareholders and potential investors of the Company that, based on the information currently available to the Board and the preliminary review of the relevant unaudited consolidated management accounts of the Group for the three months ended 31 March 2023 the Group is expected to record an increase in net loss after tax by 27.9% from approximately RMB 12.6 million for the corresponding period in 2022 to approximately RMB 16.2 million for the 2023 First Quarter. Even though the revenue of the 2023 First Quarter was increased by 13.1% when compared to corresponding period in 2022 (from approximately RMB 108.8 million to approximately RMB 123.0 million), and the gross loss was decreased from approximately RMB 2.3 million (a gross loss margin of 2.2%) for the corresponding period in 2022 to approximately RMB 1.7 million (a gross loss margin of 1.4%) for the 2023 First Quarter, the Group still recorded an increase in net loss after tax for the 2023 First Quarter. Such increase in net loss after tax was mainly attributable to (i) an increase in allowance of impairment on trade receivables from approximately RMB 9.0 million for the corresponding period in 2022 to approximately RMB 14.3 million for the 2023 First Quarter; and (ii) an increase in administrative expenses from approximately RMB 4.8 million for the corresponding period in 2022 to approximately RMB 6.7 million for the 2023 First Quarter, which was mainly due to increase in travelling expenses and salaries and other allowances.