Allan International Holdings Limited provided consolidated earnings guidance for the year ended March 31, 2022. For the period, the company expected to record a net loss within the range of HKD 25 million to HKD 29 million for the year ended 31 March 2022 as compared with a net profit of HKD 46.4 million recorded by the Group for the year ended 31 March 2021. The expected loss was mainly due to: decrease in sales turnover and gross profit margin: shortage in containers and disruption in freight schedules causing shipment delays and increase in related costs and expenses; and increase in material costs, particularly electronic components due to shortage in supply; and increase in energy costs due to shortage in electricity supply in the PRC; and appreciation in RMB currency: and the absence of subsidies received under the Employment Support Scheme of the Government of Hong Kong Administrative Region.

The subsidies received for the year ending 31 March 2021 was approximately HKD 4.5 million; and the absence of government support for reduction in PRC social insurance expense. The social insurance expense paid for the year ended 31 March 2022 was approximately HKD 21.3 million (RMB 17.7 million) as compared to approximately HKD 9.0 million (RMB 7.7 million) paid for the year ending 31 March 2021.