BaWang International (Group) Holding Limited provided group earnings guidance for the ten months ended 31 October 2022. The Board informed the shareholders and the potential investors of the company that, based on a preliminary review of the currently available financial information, the Group is expected to record a net loss in the region of approximately RMB 25.3 million for the ten months ended 31 October 2022 as compared with an unaudited net loss of RMB 13.8 million for the same period last year. Based on the currently available information, the marked increase in net loss of the Group in was primarily attributable to the following factors: a decline in sales resulting from the sluggish market environment with the COVID-19 pandemic remaining volatile both domestically and overseas; in response to the fierce market competition, the Group increased its promotion expenses of its online channel to keep this channel active; despite a reduction in cost of sales resulting from a decline in sales, cost of sales per unit increased due to inflationary pressures on raw materials and indirect raw materials; and the Group incurred additional costs in its staff optimization exercise.