The board of the directors Lai Group Holding Company Limited informed the shareholders and potential investors of the Company that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the three months ended 30 June 2023 and the information currently available to the Board, the Group is expected to record a net loss ranging from approximately HKD 4.1 million to approximately HKD 4.6 million for the three months ended 30 June 2023 as compared with a net profit of approximately HKD 1.5 million for the corresponding period in 2022. The Board considers that the expected net loss was primarily attributable to the decrease in revenue and gross profit margin from projects undertaken by the Group, as a result of the ongoing adverse and competitive market conditions for the three months ended 30 June 2023.