The Board of Sinomax Group Limited informed the Shareholders and potential investors that, based on a preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2022, the Group is expected to record a loss after taxation in the range of approximately HKD 44 million to HKD 48 million as compared to a profit after taxation of approximately HKD 14.5 million for the six months ended 30 June 2021. The above result was primarily attributable to (1) the continual outbreak of the COVID-19, particularly the wave during March and April 2022 in the PRC, which had critically weakened both local and global consumption market and also the sales of the Group; and (2) the impact of the above also resulted in higher supply chain and logistic costs of the Group.