Cinese International Group Holdings Limited provided group earnings guidance for the year ended 31 December 2021. The Group is expected to record a net loss of approximately HKD 75.4 million in the consolidated statement of comprehensive income for the Year, representing an increase in net loss by approximately 56.8% as compared to the net loss of approximately HKD 48.1 million for the year ended 31 December 2020. Based on the information currently available, the expected net loss for the Year was mainly attributable to: a provision of Departure and Deemed Disposition Taxes of approximately HKD 31.5 million, which was based on a preliminary assessment of the tax representative of the Group, and subject to the final tax assessment of the Canadian Tax Authority, was charged as income tax expense as a result of the change in control of the Company on 19 July 2021.

For details of the tax implication in relation to the change of Canadian residency of the Company and expected credit losses allowance of approximately HKD 39.3 million was made in accordance with International Financial Reporting Standard 9 to certain financial assets in light of the unfavourable market condition caused by the sustained outbreak of COVID-19.