China Outfitters Holdings Limited provided earnings guidance for the year ended 31 December 2022. For the year, the company expected that Group's net loss attributable to owners of the parent will significantly increase by at least 60% as compared with that for the year ended 31 December 2021 of RMB 151,815,000. The increase of expected Net Loss for the Relevant Year was mainly attributable to: (i) a decrease in revenue by at least 30% due to the outbreak of Omicron Variant pandemic during the Relevant Year.

The lockdown measures taken in Shenzhen, Shanghai, Beijing, Jinan, Tianjin, Chengdu, Zhengzhou etc., has caused a sharp decrease in customer flows in the department stores, shopping malls and outlets where retail points operate; and (ii) an increase in impairment on long-term assets including trademarks and right-of- use assets etc.