Tai Hing Group Holdings Limited provided consolidated earnings guidance for the year ended 31 December 2022. For the year, the company expects to record a loss attributable to the Shareholders in the range of approximately HKD 40 million to HKD 50 million for the Year, as compared to profit attributable to the Shareholders of approximately HKD 100 million for the year ended 31 December 2021. Based on the information currently available, the Board is of the view that t he expected loss attributable to the Shareholders for the Year was mainly due to the following: (1) The outbreak of the fifth wave of the novel coronavirus in Hong Kong during the Year, the HKSAR Government's implementation of dine-in restrictions on evening dining from late-January to mid-April 2022, stricter social distancing policies and the decrease of customer flow from the Mainland China had a negative impact on the Group's operations and business.

Temporary suspension of business of some restaurants due to the Pandemic and the weak market sentiment led to a drop in the Group's revenue; (2) Due to the raging Pandemic in the Mainland China in the Year, government authorities in some regions such as Shenzhen, Guangzhou, Shanghai and Beijing implemented a series of measures to curb the Pandemic, including city lockdown, closed-loop management, travel restrictions and dine-in restrictions, and thus the operation and performance of the Group's restaurants in these regions were adversely affected. However, certain fixed operating costs such as rental expenses and employees' remuneration in respect of these restaurants were still incurred; and (3) Provision for impairment of property, plant and equipment and right-of-use assets was made for the Year.