Dadi International Group Limited provided earnings guidance for the nine months ended 31 December 2021. For the period, the Group expected that it will record a loss for the period of approximately HKD 60.0 million as compared to a profit of HKD 12.0 million a year ago. The loss for the nine months ended 31 December 2021 was mainly attributable to a significant period-to-period decrease in the revenue of the Group generated from the book publication, purchase and distribution segment stemming from the impact of the COVID-19 pandemic.

With the continued sporadic outbreak of COVID-19 confirmed cases in various regions in the PRC as a result of the evolvement of the COVID-19 variants, an overall slowdown of business activities along the industry chain led to a tightened cash flow and, in turn, a generalised delay in the settlement of payments and receivables among various industry participants. The Group, adopting its prudent capital management perspective, had to continue with its approach to temporarily ease the pace of its operations in this business segment. Meanwhile, the Group had been strengthening its effort to recoup the outstanding receivables from certain downstream distributors as its ongoing commitment to maintain its liquidity and financial position to facilitate its business operations and development.