Wanjia Group Holdings Limited provided consolidated earnings guidance for the six months ended 30 September 2022. It is expected that the loss for the Current Period will increase substantially by not less than approximately HKD 2 million as compared to the profit of approximately HKD 0.468 million recorded for the six months ended 30 September 2021. The expected increase in loss for the Current Period was mainly attributable to, among others, the following reasons: With a new wave of Covid-19 pandemic raging through Mainland China since the first quarter of 2022, strict quarantine measures and lockdown restrictions implemented in some of the cities have caused disruptions to the supply chain and manufacturing activities, adversely affecting the cost of sales of the Group.

Moreover, the increase of production costs due to a rise in prices of key raw materials, which led to substantial increase in cost of sales and thus the Group's overall profitability in pharmaceutical distribution and hemodialysis services have been negatively impacted for the Current Period.