Win Hanverky Holdings Limited provided unaudited consolidated earnings guidance for the year ended 31 December 2022. For the year, the Group is expected to record profit after taxation of approximately HKD 20 million for the Current Year as compared to loss after taxation of HKD 70 million for the year ended 31 December 2021. The change in estimated result for the Current Year as compared to the Prior Year was mainly attributable to the following reasons: gains (before taxation) arising from the disposals of land lease right in Vietnam and a property-holding subsidiary in Hong Kong of approximately HKD 54 million and HKD 15 million respectively; (ii) decrease in operating profit from High-end Fashion Retailing Business by approximately HKD 128 million to operating loss of HKD 115 million (2021: profit of HKD 13 million) which was mainly attributable to decrease in revenue by approximately HKD 326 million or 27% to HKD 882 million (2021: HKD 1,208 million).

The decrease in revenue was mainly due to the temporary store closures in major cities of Mainland China during the Current Year resulting from the highly infectious Omicron variants of COVID-19 and the corresponding restrictions imposed by the Chinese government; and (iii) increase in operating profit from Manufacturing Business by approximately HKD 154 million to operating profit of HKD 90 million (2021: loss of HKD 64 million), before taking into account the Disposal Gains mentioned above, which was mainly attributable to increase in revenue by approximately HKD 630 million or 22% to HKD 3,558 million (2021: HKD 2,928 million) resulting from the increased orders received from customers in the Current Year, as well as the fulfilment of orders brought forward from the temporary production suspension at the Vietnam factories in the second half of the Prior Year.