Tailam Tech Construction Holdings Limited provided earnings guidance for the six months ended 30 June 2022. For the period, the company is expected to record a consolidated profit of approximately RMB 0.5 million compared to approximately RMB 7.1 million for the corresponding period in 2021. The material decline in the financial performance of the Group was mainly due to the following: the outbreak of COVID-19 that surged in major cities of China including Shanghai and Jiangsu Province where the Group operates resulted in a citywide lockdown of Shanghai and some of the core cities in Yangtze River Delta region.

The COVID-19 related prevention and control measures implemented in these cities caused the postponement or cancellation of many local infrastructure projects and restricted mobility of people and increased logistic and material costs; and the weak property market and the delays in infrastructure projects, the deterioration of which were further accelerated by the credit tightening, the restrictive policies and cashflow issue in the property sector.