Cosmopolitan International Holdings Limited provided earnings guidance for the year ended 31st December, 2021. For the year, the company expects a net profit of approximately HKD 34 million as compared to the net loss of HKD 123.5 million recorded for the preceding year. The improved results attained in the year under review were largely attributable to the partial recognition of the revenues from the contracted presales of the residential units in the third stage of the Group's Regal Cosmopolitan City development in Chengdu, China, as about 60% of the units presold have been handed over to the purchasers before the year end in 2021.

The revenues from the remaining presold units will be recognised in the current financial year, as the handover of those units is expected to be fully completed within the first quarter of 2022. The property income from the sale of the residential units and other properties in the Chengdu project, which have been handed over to the purchasers before 31st December, 2021, amounted to approximately HKD 599 million before tax and selling expenses. However, at the same time, there were impairment losses on goodwill related to as well as on the property under development comprised within the Chengdu project, which totaled approximately HKD 237 million.

Consequently, after further accounting for the substantial tax incurred on the property projects, the net profit attributable to shareholders for the financial year under review had been affected.