The board of directors of the Michong Metaverse (China) Holdings Group Limited announced that based on a preliminary assessment by the Board with reference to the unaudited management accounts of the Group for the three months ended 30 September 2022 and the information currently available to the Board, the Group expects to record a net profit of approximately HKD 9,995,000 for the three months ended 30 September 2022 as compared to the net loss of approximately HKD 1,847,000 for the three months ended 30 September 2021. The Board considers the expected net profit for the three months ended 30 September 2022 is mainly attributable to (i) an increase in the revenue from approximately HKD 15,446,000 for the three months ended 30 September 2021 to approximately HKD 33,825,000 for the three months ended 30 September 2022 mainly due to the subscription fee of approximately HKD 16,170,000 arisen in the electronic commerce services in the PRC (Three months ended 30 September 2021: Nil) and (ii) an improvement in gross profit margin from approximately 29.0% for the three months ended 30 September 2021 to approximately 62.2% for the three months ended 30 September 2022.