Wai Chun Group Holdings Limited provided group earnings guidance for the year ended 31 March 2022. The board of directors of the company informed the shareholders of the Company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 March 2022, the Group is expected to record consolidated net loss of not less than approximately HKD 100 million for this
Year. The turnaround from audited net profit of approximately HKD 2.5 million in last year to unaudited net loss of not less than approximately HKD 100 million in this Year was primarily due to below reasons: fair value loss on modification of terms on convertible bonds of approximately HKD 50.3 million was recognised in this Year; fair value loss on issuance of convertible bonds of approximately HKD 12.6 million was recognised in this Year; the increase in imputed interest for convertible bonds of approximately HKD 16.2 million in this Year; there was other income of approximately HKD 35.5 million recognised in last year which was attributable to the gains from settlement for litigation cases, and there was no corresponding income during this Year.