Shenwan Hongyuan (H.K.) Limited provided consolidated earnings guidance for the year ended December 31, 2021. The Board update the shareholders and potential investors of the company that, based on the latest financial information available to the Board and on-going discussions with auditor of the company, the unaudited consolidated loss after tax of the Group for the year ended 31 December 2021 is expected to record a range of HKD 93 million to HKD 98 million. After on-going discussions with auditor of the company and based on prudent consideration, such expected loss was mainly due to a further increase in expected credit loss provision of fixed income products in institutional services and trading business.

This expected credit loss provision is not a realized loss. The abovementioned accounting adjustment has little impact on financial position and business operates as normal.