Shenguan Holdings (Group) Limited provided consolidated earnings guidance for the year ended 31 December 2022. For the period, the company expects the Group is expected to record a profit attributable to the owners of the Company within the range of approximately RMB 10 million to approximately RMB 20 million for the year ended 31 December 2022 (the "Year"), representing a decrease of approximately 83.7% to 91.8% as compared to that for the year ended 31 December 2021. The Board considers that the decrease in profit for the Year was primarily attributable to: (i) the escalation of the COVID-19 pandemic and various COVID-19 controlling policies and measures adopted by the government of the PRC mainland and other countries during the Year, which caused disruptions to business activities and logistics of many enterprises including the Group and business partners, which in turn led to decrease in demand of products and increase in transportation and procurement expenses; (ii) the increase in costs of sales due to increase of costs of raw materials and utilities charges during the Year, which was partly offset by increase in average selling prices of products; (iii) an impairment to the Group's investment in an associate due to the adverse changes in economic and market conditions; and (iv) the increase in expenses incurred for the development and promotion of new products.