JiaChen Holding Group Limited provided consolidated earnings guidance for the year ended 31 December 2023. For the year, the company expected the net profit of the Group attributable to the owners of the Company is reduce by not less than 40% as compared to that of approximately RMB 10.7 million for the year ended 31 December 2022. The Board believes that the reduction in the net profit attributable to the owners of the Company for the Year 2023 was primarily attributable to the increase in: selling expenses by not less than 30% and administration expenses by not less than 10% as compared to that of approximately RMB 7.2 million and RMB 20.4 million respectively for the year ended 31 December 2022.

The management of the Group believes that the increase in the aforesaid expenses was inevitable in order to cope with the increase in revenue of the Group for the Year 2023 and the expected expansion in revenue of the Group in future; and impairment of contract assets and trade and bills receivables by not less than 50% as compared to that of approximately RMB 5.0 million provided for the year ended 31 December 2022, which was determined based on the historic credit loss experiences as adjusted for forward looking estimates.