China Environmental Resources Group Limited provided earnings guidance for the six months ended 31 December 2022. For the year, it is expected that the Group's unaudited loss for the six months ended 31 December 2022 will decrease by not less than 60% compared to the loss for the corresponding period in 2021 of approximately HKD 6.4 million. The Board considers that such decrease was attributable to the combined effects of the followings during the six months ended 31 December 2022: (i) decrease in gross profit to approximately HKD 7.0 million mainly due to the increase in cost of products; (ii) increase in other income to approximately HKD 11.2 million mainly due to written-off non-recourse liabilities and gain on disposal of property, plant and equipment; (iii) decrease in fair value loss on investment properties to approximately HKD 0.8 million; (iv) decrease in a gain arising from changes in fair value less costs to sell of biological assets to approximately HKD 1.9 million; (v) increase in finance costs to approximately HKD 1.9 million; and (vi) decrease in income tax expenses to HKD 0.2 million.