Chiho Environmental Group Limited provided preliminary unaudited consolidated group earnings guidance for the year ended 31 December 2022. For the year, the group expects that the net profit will decline as compared to that for the year ended 31 December 2021 mainly due to, among other things, the following factors: The production of the Group in Europe and Asia regions was suspended from time to time during the Year 2022, which was mainly due to the outbreak of the Russian-Ukrainian war and the impact of the COVID-19 pandemic which led to delay in material supply and outbound logistical delays in delivery of products to customers. Hence, there is a decline on revenue and gross profit.

The production costs of the Group such as material costs and utility costs were continuously increasing in the Year 2022, that led to a decline on gross margin. The joint ventures of the Group were also suffering from the impact of the outbreak of the Russian- Ukrainian war and the COVID-19 pandemic and as a result their profitability declined. Hence, there is a decline on share of post-tax profit in joint ventures.

Notwithstanding the above, it is expected that the Group will record a net profit in a range of approximately HKD 210 million to HKD 240 million for the Year 2022 as compared to that of approximately HKD 692 million for the year ended 31 December 2021.