Differ Group Auto Limited provided loss guidance for six months ended 30 June 2023. The group expected to record a consolidated net loss ranging from approximately RMB 130.0 million to RMB 140.0 million for the six months ended 30 June 2023, as compared to the net profit of RMB 80.6 million for the corresponding period of 2022. The Board considers that consolidated net loss for the six months ended 30 June 2023 was mainly attributable to, among other factors: (i) Increase in impairment loss on other receivables During the six months ended 30 June 2023, two debtors failed to repay the other receivables to the Group by due date and the business of another debtor was severely affected by the collapse of the PRC property market and the slowdown of PRC economic growth.

Accordingly, the amount of not less than RMB 240.0 million impairment loss on other receivables was recorded for the six months ended 30 June 2023. Decrease of revenue from automobile e-commerce business During the six months ended 30 June 2023, the Group suffered from insufficient of financial resources and operated under liquidity pressure. Under such financial situation, the Group adopted a prudent approach to operate its automobile e-commerce business.

The revenue from automobile e-commerce business was estimated to decrease significantly by 90% as compare to the corresponding period of 2022.