Leadway Technology Investment Group Limited provided preliminary unaudited consolidated group earnings guidance for the six months ended 30 June 2022. For the period, the group expects to record a minor net profit, as compared to the net loss of HKD 10.9 million for the six months ended 30 June 2021. The Board considers that such turnaround from net loss to net profit position is mainly attributable to the following factors: during the Reporting Period, there is improvement in the Group's revenue to HKD 45.3 million (Prior Period: HKD 36.3 million) and increase in gross profit to HKD 23.5 million (Prior Period: HKD 20.3 million) generated from the sale of smart card products and provision of related service especially from the Europe region.

This is mainly due to the improvement in global supply of integrated circuit chips, and the relieve of overseas control measures for novel coronavirus disease (COVID-19) so more national-based government projects resume normal operation; there is net exchange gain during the Reporting Period of HKD 1.6 million (Prior Period: net exchange loss of HKD 1.6 million). This is due to the depreciation of Renminbi against Hong Kong dollar during the Reporting Period resulting in a decrease of Renminbi denominated payable balances, whereas appreciation of Renminbi against Hong Kong dollar was noted during the Prior Period; depreciation and amortisation decreased to HKD 4.7 million (Prior Period: HKD 7.1 million) due to the fact that there are less depreciable property, plant and equipment and intangible assets during the Reporting Period; and there is an increase in government subsidies income of HKD 0.9 million mainly due to the granting of 2022 Employment Support Scheme subsidy by the Hong Kong government under the anti-epidemic fund during the Reporting Period, while no such subsidy was granted during the Prior Period.