Joy Spreader Group Inc. provided unaudited consolidated earnings guidance for the six months ended June 30, 2022. For the period, the group expects, for the six months ended June 30, 2022 to record (i) a revenue of approximately HKD 1,300.00 million to HKD 1,380.00 million, which represents an increase ranging approximately between 108.22% and 121.04% as compared with that of HKD 624.33 million for the six months ended June 30, 2021 (the "Corresponding Period"); and (ii) a gross profit of approximately HKD 185.00 million to HKD 205.00 million, which represents a decrease ranging approximately between 13.58% and 4.24% as compared with that of HKD 214.07 million for the Corresponding Period. The Board is of the view that the change in the financial results for the First Half Year of 2022 is mainly attributable to the following factors: (1) The reason for significant growth in the Group's revenue is that the Group's overseas E-commerce business achieved a significant growth in revenue for the First Half Year of 2022.

This business is in the stage of rapidly seizing market space and its scale is constantly expanding. The Group's investment in this business continues to increase. Especially the business scale in Southeast Asia region grows rapidly; (2) The reason for significant growth in the Group's revenue for the First Half Year of 2022 but lack of significant growth in gross profit is that the overseas E-commerce business is in the stage of seizing market space.

In order to enlarge market share and expand more marketing channels and selling channels, the Company has subsidized this business and offered preferential strategies to sellers, resulting in a relatively small contribution to the Group's gross profit from this business; (3) The main reasons for decrease in revenue scale and gross profit of the Group's domestic business for the First Half Year of 2022 as compared with the Corresponding Period are: (a) due to the tightened regulatory approval of game copyright number for the First Half Year of 2022, the Group's new products of interactive entertainment business were restricted, which affected the revenue and gross profit of this business; and (b) due to the pandemic, logistics, warehousing and other industrial chains in relation to the Group's domestic E-commerce business, especially in East China region with Shanghai as the core, have been impacted, resulting in a slight decrease in the scale of marketing business for domestic E-commerce products for the First Half Year of 2022 as compared with the Corresponding Period; and (4) The reason for the Group's gross profit for the First Half Year of 2022 remained relatively stable notwithstanding the two factors mentioned in point (3) above was that the Group actively expanded its overseas E-commerce business, which alleviated the impact of unfavorable factors in the domestic market on us.