China Aerospace International Holdings Limited provided preliminary consolidated earnings guidance for the six months ended 30 June 2022. For the period, the company is expected to record a loss before taxation of not less than HKD 270,000,000 for the six months ended 30 June 2022, representing a substantial decrease of not less than HKD 678,000,000 as compared to the records of profit before taxation of approximately HKD 408,000,000 for the same period in 2021. Accordingly, the Company is expected to record a substantial net loss for the six months ended 30 June 2022.

The expected loss is mainly attributable to the one-off provision made in accordance with the accounting policy in relation to the termination of lease agreement between Shenzhen Aerospace Technology Investment Company Limited, a 60% indirect owned subsidiary of the Company and Shenzhen Hangke Houhai Investment Development Company Limited ("Hangke Houhai") for the billed and unbilled rental receivables from Hangke Houhai in aggregate of approximately RMB 437,000,000 (equivalent to approximately HKD 536,000,000).