Tenfu (Cayman) Holdings Company Limited provided preliminary earnings guidance for the six months ended June 30, 2022. For the period, the company expects to record a decline by 50% to 60% in profit attributable to shareholders of the Company as compared with that for the corresponding period ended June 30, 2021. Based on the information currently available, the Board considered that the abovementioned expected decline was mainly attributable to the combined effect of: the drop in revenue by 10% to 20% as compared with that for the corresponding period ended June 30, 2021, mainly due to significant negative impact of coronavirus disease (COVID-19), the partial suspension of the Group's factories and physical stores in various cities of China brought by the strict pandemic control and lockdown measures as a result of the resurgence of COVID-19 pandemic in various parts of China; the early kick-off of the Chinese new year on 1 February 2022 which brought forward most wholesale orders before December 31, 2021; and the delayed issue of the certificate of resident status by the Hong Kong Inland Revenue Department for the purposes of claiming tax benefits under the Comprehensive Double Taxation Arrangements, with which the tax rate would decrease to 5% from 10%.