Santak Holdings Limited provided earnings guidance for the six months ended December 31, 2022. Following a preliminary assessment of the financial results for HY2023, the Group is expected to report a substantially lower revenue and a significantly higher loss before tax for HY2023 compared to the revenue and loss before tax in the previous corresponding period. The decrease in revenue was due to substantially lower contributions from the Group's precision engineering division arising mainly from significantly weaker demand from the data storage sector.

However, the sales of the trading and distribution division was slightly higher compared to HY2022. The Group's gross profit was also substantially lower mainly arising from lower economies of scale recorded as a result of the decrease in turnover. In addition, other operating expense also increased in HY2023 compared to previous corresponding period mainly due to a foreign exchange loss registered in HY2023 versus foreign exchange gain during HY2022.