China Environmental Resources Group Limited provided earnings guidance for the year ended 30 June 2022. For the year, it is expected that the Group's audited consolidated loss for the year ended 30 June 2022 will decrease by not less than 65% compared to the loss for the corresponding period in 2021 of approximately HKD 48.9 million. The Board considers that such decrease was attributable to the combined effects of the followings during the year ended 30 June 2022: (i) increase in gross profit to approximately HKD 21.2 million mainly due to the increase in revenue; (ii) increase in other income to approximately HKD 4.1 million mainly due to wavier of lease liabilities because of COVID-19; (iii) turnaround from a loss to a gain arising from changes in fair value less costs to sell of biological assets of approximately HKD 10.0 million; (iv) turnaround from a net loss to a net gain on fair value changes in investments at fair value through profit or loss of approximately HKD 0.7 million; (v) decrease in provision for impairment loss of intangible assets to approximately HKD 1.8 million; (vi) reversal of provision for impairment loss of receivables; and (vii) increase in tax expense to approximately HKD 1.6 million.