Cinese International Group Holdings Limited provided unaudited consolidated earnings guidance for the year ended 31 December 2022. For the period, the Group expects a decrease in loss before income tax by not less than HKD 38.1 million (approximately 63.6%) for the year ended 31 December 2022 as compared to the loss before income tax of approximately HKD 59.9 million for the year ended 31 December 2021. Based on the information currently available, the expected decrease in loss before income tax for the Year was mainly attributable to the combined effect of, among others: an increase in the Group's gross profit by approximately HKD 5.9 million or approximately 35.8% from approximately HKD 16.6 million for the year ended 31 December 2021 to approximately HKD 22.5 million for the Year.

Such increase in gross profit was mainly due to an increase in revenue generated from the Group's travel business process management services and air ticket distribution services, which have higher gross profit margins. The said increase in revenue was primarily attributable to the gradual recovery of the travel industry with increasing rate of vaccination worldwide; and a decrease in expected credit losses ("ECLs") allowance on trade and other receivables by approximately HKD 39.0 million or approximately 99.2% from approximately HKD 39.3 million for the year ended 31 December 2021 to approximately HKD 0.3 million for the Year. Such decrease was mainly due to the fact that, as compared to 2021, the balance of trade and other receivables that was subject to additional ECLs allowance was lower, such that a lower amount of additional ECLs allowance had been made for the Year; partly offset by: a decrease in grants received by approximately HKD 14.1 million in relation to wage subsidies from the Canada Emergency Wage Subsidy Program as a result of the gradual recovery of the revenue of the Group.

As such, the total subsidies received by the Group decreased from approximately HKD 14.2 million for the year ended 31 December 2021 to less than HKD 0.1 million for the Year.