Culturecom Holdings Limited provided earnings guidance for the year ended March 31, 2022. For the year, the revenue of the Group is expected to record a decrease of approximately 70% as compared to the revenue of the Group for the year ended March 31, 2021. Such decrease in revenue was primarily due to the fall in revenue in the digital marketing segment, caused by the increasingly fragmented market which has intensified competition.

The Board believes that such downturn in revenue is primarily due to the overall downward trend of the economy in FY2022 and the Group will continue to allocate its resources to build and strengthen its marketing team and big data analysis capability, so as to maintain its competitiveness and market position when the market conditions improve. The Board would also like to inform the shareholders and potential investors that despite the decrease in revenue, the loss of the Group has been reduced. The loss attributable to the Shareholders for FY2022 is expected to be reduced by not less than 40% as compared to the loss attributable to the Shareholders for FY2021.

The reduction in loss was mainly due to the implementation of cost-control measures within the Group, including but not limited to the streamlining of the Group's operation structure and the continuing transition to digital marketing, resulting in reduction of selling expenses and administrative expenses and the adoption of new marketing strategy which improved gross profit margin of the Group's digital marketing business.