The board of directors of Huafang Group Inc. announced that, the auditing process for the annual consolidated financial statement of the Group for the year ended December 31, 2022 has not been completed by the Company's auditor, KPMG, as of the announcement date as the Company needs additional time to provide relevant documents required by the Company's auditor for certain bank accounts which have been frozen. As a result, the Company is unable to publish the audited consolidated final results for the year ended December 31, 2022 which shall have been agreed with the Company's auditor (the 2022 Audited Annual Results) by March 31, 2023 in accordance with Rules 13.49(1) and 13.49(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the Listing Rule). Rule 13.49(3) of the Listing Rules provides that where an issuer is unable to issue its preliminary results, it must announce its results based on the financial results which have yet to be agreed with the auditor.

In order to keep the Shareholders and potential investors informed of the business operation and financial position of the Group, the Board decided to present the unaudited consolidated final results of the Company for the year ended December 31, 2022 which have not been agreed by the Company's auditor (the 2022 Unaudited Annual Results) on March 30, 2023. At the Board meeting held on March 30, 2023, the Board reviewed and approved, among other things, the publication of the 2022 Unaudited Annual Results for the year ended December 31, 2022. The Board acknowledges that any delay in publishing the 2022 Audited Annual Results will constitute a non-compliance with Rule 13.49(1) of the Listing Rules.