Ocean Star Technology Group Limited provided earning guidance for the year ended 31 March 2022. The board of directors informed the shareholders of the Company (the "Shareholders") and potential investors that, based
on the information currently available to the Board, including the unaudited consolidated management accounts of the Group for the year ended 31 March 2022, the Group is expected to record a loss attributable to owners of the Company of approximately HKD 20.0 million for the year ended 31 March 2022 as compared to an audited profit attributable to owner of the Company of approximately HKD 3.7 million for the year ended 31 March 2021. The
Board considers that such loss was mainly attributable to: (1) the decrease in sales volume, the Government grants under the Employment Support Scheme and the COVID-19 rent concession received granted by Landlords; (2) the increase in staff cost, marketing expenses and rental and related expenses; (3) the increase in impairment loss recognized on investment in associates, goodwill and right-of-use assets; and (4) the increase in allowance and write off
recognized for inventories, deposits, prepayment and other receivables.