China Everbright Environment Group Limited provided consolidated earnings guidance for the year ended 31 December 2022. For the year, the company expected it would record a decrease of approximately 30% to 35%, as compared with that for the year ended 31 December 2021. The decrease was primarily due to the following factors: 1. a substantial decrease in construction service revenue was recorded during the Year 2022, mainly resulting from a significant drop in the number of new projects in the industry; and 2. the Group has made a full goodwill impairment in the amount of approximately HKD 590 million for its subsidiaries in Poland during the Year 2022, which was mainly due to the sharply increasing rates of Poland government bonds, the severe inflation in Poland caused by geopolitical frictions and the substantially rising operating costs for the Poland project.

Against the backdrop of intense competition, the Group still maintained reasonable growth in its principal businesses. Based on the assessment of the unaudited consolidated management accounts of the Group, the Group maintained a good debt profile in the Year 2022. The Board considers that the overall financial, businesses and operating positions of the Group remain healthy, and is optimistic about the long-term growth and development of the Group.