The board of directors of Orange Tour Cultural Holding Limited announced that, based on its preliminary assessment of the unaudited consolidated management accounts of the Group and information currently available to the Board, the Group expects to record a revenue of approximately RMB 12.7 million, and a net loss attributable to owners of the Company of approximately RMB 4.3 million for the nine months ended 30 September 2022, representing a decline of approximately 41% and a turnaround from net profit to net loss respectively as compared with the same period of last year. The aforesaid expected turnaround from net profit to net loss attributable to owners of the Company for the Period was led by the decrease of the Group's revenue, especially the delayed and cancelled event management projects following continued COVID-19 outbreaks and strict disease control measures in Wuxi and Yixing. The various level of community and travel quarantine in Wuxi and Yixing affect its key client such as government authorities, state-owned enterprises, real estate corporations and other corporate customers to delay or even cancel their marketing plans and also to reduce their marketing spendings under such situation.

The declining number of event management projects undertaken and city-wide lockdown COVID-19 control measures with the decision to maintain a strict policy by the government authorities inevitably posed pressure on the revenue and results of the Group during the Period under review.