Cosmos Machinery Enterprises Limited provided earnings guidance for the year ended 31 December 2022. The Group for the year ended 31 December 2022 and the information currently available to the Board, it is expected that there would be a deterioration in the operating results of the Group and is expected to record an unaudited consolidated profit of not more than HKD 20,000,000 for the year ended 31 December 2022, as compared to a consolidated profit of approximately HKD 84,205,000 for the year ended 31 December 2021. The expected deterioration was primarily attributable to the following reasons: During 2022, various lockdowns in Shanghai and nearby cities and later mass infections throughout China have caused disruptions to the supply chain and suspension of manufacturing and marketing activities, affecting the Group and customers.

Furthermore, some unfavorable conditions, including reduction of orders intake and increase of production costs due to a rise in prices of key raw materials, continued to exist in the year, which led to negative impact on the Group's businesses, especially machinery manufacturing business and printed circuit boards processing business. Both businesses are expected to record operating losses for the year ended 31 December 2022.