Hong Kong Johnson Holdings Co., Ltd. provided earnings guidance for the first five months ended 31 August 2023. The group for the first five months ended 31 August 2023 by the management of the Company, the revenue of the Group for the Period is expected to record a decrease of about 34% as compared to that for the first five months ended 31 August 2022 of approximately HKD 1,035.6 million. The profit attributable to the equity holders of the Company for the Period is expected to record a decrease of about 57% after taking into account the Change in Accounting Estimates as stated above as compared to that for the first five months ended 31 August 2022 of approximately HKD 27.4 million.

According to the information currently available, the decrease in revenue and profit during the Period as compared to the five months ended 31 August 2022 was mainly attributable to (i) certain government contracts for the provision of cleaning services not being successfully renewed since April 2023, which caused a decrease in revenue generated from government customers during the Period; (ii) the decrease in profit margin of the Group's certain service contracts due to intense market competition; (iii) the decrease in government subsidies by approximately HKD 1.8 million received from the Employment Support Scheme of the Government of the Hong Kong Special Administrative Region during the Period as compared to that for the first five months ended 31 August 2022; and (iv) the decrease in certain fixed costs of the Group during the Period was less than the decline in revenue.