China Overseas Nuoxin International Holdings Limited provided preliminary unaudited condensed consolidated group earnings guidance for the six months ended 30 September 2022. For the year, the group expects to record a loss attributable to the shareholders of the Company for the Current Period of not less than approximately HKD 19.2 million as compared to the loss attributable to the shareholders of the Company of approximately HKD 13.1 million for the six months ended 30 September 2021 (the Last Corresponding Period). Based on the information currently available, the Board considers that the expected increase in loss during the Current Period as compared to the Last Corresponding Period, is primarily attributable to the decrease in revenue generated from the sales of the Group's products of approximately 27.0% due to the impact on global economy brought by the prolonged Russia-Ukraine conflict, which adversely affected the demand of the Group's products from customers of the European markets; and the increase in cost of sales due to the increase in material costs, especially metal-related components, resulting from the restrictive measures in respect of Covid-19 in the People's Republic of China (the PRC) during the first half of 2022, and overhead costs, such as labour costs as the minimum wage in Guangdong Province of the PRC raised by 10.5% effective from 1 December 2021.