The board of directors of China Art Financial Holdings Limited informed the shareholders and potential investors that, based on a preliminary review by the Board on the latest unaudited consolidated management accounts of the Group, which have not been reviewed or audited by the independent auditors and/or the audit committee of the Company, and taking into consideration of the information currently available to the Board, the Group is likely to record a significant reduction in net profit for the six months ended 30 June 2023 in the range of 70% to 80% as compared to the corresponding period in 2022 which recorded a net profit of approximately RMB 14 million. The expected reduction in profit is mainly attributable to the decrease in the interest revenue from art and asset pawn business.