Water Oasis Group Limited Announced that the Group will record profit for the year in the range of approximately HKD 60 million to HKD 70 million for the Reporting Year as compared to approximately HKD 170 million for the Last Financial Year. Such decrease in profit for the year was mainly due to: a fall in revenue from the beauty service segment as a result of the compulsory closure of beauty centers in Hong Kong imposed by the Hong Kong government for 104 days during the Reporting Year compared with only 70 days in the Last Financial Year; a decrease in gross profit margin from approximately 92% of the Last Financial Year to approximately 88% as a result of decrease in revenue contribution from the beauty service segment with higher gross profit margin; an increase in depreciation by approximately HKD 31 million mainly caused by the setting up of new beauty stores in Hong Kong during the Reporting Year and an increase in staff cost of approximately HKD 21 million; and an one-off financial impact charge to profit or loss of approximately HKD 33 million resulting from the settlement with the vendor of Millistrong Holdings Limited on 23 June 2022 (a wholly-owned subsidiary acquired by the Company on 28 June 2021) according to the relevant Hong Kong Financial Reporting Standards. The settlement and the reasons for it were disclosed in the announcements of the Company dated 23 June 2022 and 28 July 2022.