The board of directors of Howkingtech International Holding Limited announced that, based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2023 and the information currently available to the Board, despite an increase in its revenue for Fiscal Year 2023 by 34% to 38% compared to approximately RMB 324.0 million for the year ended 31 December 2022, the Group expects a decrease in its adjusted net profit (which is not Hong Kong Financial Reporting Standards measure) for FY2023 by 27% to 37% compared to approximately RMB 51.0 million for the year ended 31 December 2022. Such estimated decrease in profit during Fiscal Year 2023 is mainly attributable to (i) the decrease in gross margin as a result of intensified market competition and uncertainty in macroeconomic conditions; and (ii) the increase in administrative expenses resulting from higher compliance costs as a company listed on the Stock Exchange since December 2022. The Board considers that the presentation of adjusted net profit (which is not Hong Kong Financial Reporting Standards measure) would facilitate comparisons of the Group's performance from period to period by eliminating the potential impact of certain items. The adjusted net profit is defined as net profit for the period adjusted by excluding the effect of (i) share option expenses; and (ii) listing expenses.