The Board of China Ting Group Holdings Limited refers to the announcement of the Company dated 28 March 2024. Unless the context requires otherwise, the capitalised terms used herein shall have the same meanings as in the First Announcement. As disclosed in the First Announcement, the Directors expected that the 2023 Preliminary Results Announcement would be published not later than Tuesday, 30 April 2024.

Such delay is primarily due to the fact that there are discrepancies in the inventory balance shown in the operating and the financial reporting and analysing systems of the Group (the ?Audit Issue''). Additional time is therefore required by PwC to perform the inventory reconciliation and the related audit procedures before finalising the audited consolidated financial statements of the Group for the year ended and as of 31 December 2023. Based on the identified facts, the Directors believe that the Audit Issue was primarily caused by the different treatments of the amount of the impairment provision of the slow-moving inventory of different brands of the finished products of the retail business of the Group made by the Group at the consolidation level which might not be fully and consistently reflected at the operational level.

The Directors also consider that the Audit Issue was not due to any fraudulent act committed by any staff of the Group, but it might be attributable to the lack of regular and item-to-item matching and reconciliation in the quantity of the balance of inventory of all brands of the finished products of the retail business of the Group. The impairment provision on the slow-moving finished products produced reduced the monetary balance of such inventory as recorded at the consolidation level, but it has not been adjusted accordingly in the quantity and the amount recorded in the enterprise resource systems of the relevant subsidiary of the Company. At the operational level, those slow-moving finished products have either been sold (in bulk at discounted prices) or given away (as business gifts or promotional items) to customers as part of the seasonal business promotion strategies and the ordinary business of the Group.

The Board wishes to inform the Shareholders and its prospective investors that the audited consolidated financial statements of the Group for the year ended and as of 31 December 2023 cannot be completed by 30 April 2024 as additional time is required for PwC to (a) understand and review the information provided (which may further be supplemented, if necessary) and (b) complete the performance of the required auditing procedures. The Company will continue to work closely and continuously with PwC in the provision of any further supplemental information for audit purpose. The Directors expect that the 2023 Preliminary Results Announcement would be published by the end of May 2024.