Huajin International Holdings Limited provided consolidated earnings guidance for the year ended 31 December 2022. For the year, the group is expected to incur an unaudited consolidated net loss ranging from approximately RMB 150 million to RMB 170 million for the year as compared with the audited consolidated net profit of approximately RMB 62 million for the year ended 31 December 2021. Even though there was an increase in the sales volume of processed steel products and galvanized steel products during the year, the Board considered that the expected net loss of the Group for the year ended 31 December 2022 was mainly due to, among others, (i) the decrease in the revenue which were adversely affected by the downturn in market conditions; (ii) the decrease in the average processing fee (being the difference between the selling price and the cost of the raw materials) of the Group's processed steel products and galvanized steel products affected by the price fluctuation of hot-rolled steel coils from the suppliers; (iii) the increase in the unit cost of sales; (iv) the increase in administrative expenses; (v) the increase in finance costs; and (vi) partially offset by a deferred tax credit.