Daohe Global Group Limited provided consolidated earnings guidance for the ended 31 December 2022. For the year, the Group is expected to record a decrease in profit for the year from approximately USD 4.1 million recorded for the year ended 31 December 2021 to not less than approximately USD 1 million this year. The Board considers that the expected decrease in profit for the year is primarily due to the following reasons: 1) The social online platforms business turned from profit to loss during the year; and 2) The impairment losses on right-of-use assets and property, plant and equipment of approximately USD 0.5 million in relation to the corresponding business.

The outbreak of more transmissible variants of COVID-19 during the year forced the Chinese Government to impose lockdown across provinces, which resulting in closure of shops as well as limiting the online live broadcasting activities. The reduction in the online and offline traffic and the poor economic prospects greatly affected the consumer's sentiment on spending. Consequently, the revenue and gross profit of social online platforms business fell by approximately 23% and approximately 51% respectively from last year.