The board of directors of the Shenglong Splendecor International Limited announced that based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the nine months ended 30 September 2022 and the information currently available to the Board, the Group expects to record a decrease in net profit attributable to owners of the Company by approximately 41% from RMB 11,605,000 to approximately RMB 6,900,000, as compared to that for the nine months ended 30 September 2021. The decrease in net profit attributable to owners of the Company was primarily attributable to (i) the decrease in gross profit derived from the decrease in revenue as the demand diminished in overseas markets; (ii) the increase in depreciation and amortization expenses due to the completion of the new factory building; and (iii) the increase in finance costs due to increase in the amount of bank borrowings.