Sitoy Group Holdings Limited provides earnings guidance for the year ended 30 June 2022. The Group is expected to turnaround from loss to profit and record a profit attributable to the owners of the Company for the year ended 30 June 2022 of not less than HKD 100,000,000, as compared to a loss attributable to owners of the Company of approximately HKD 150,249,000 for the corresponding period in 2021. The turnaround is mainly due to 1) various COVID-19 strategies implemented by different countries or areas together with the growing global COVID-19 vaccine injection rate, which has stabilised the COVID-19 situation and reduced the fear of COVID-19, benefiting both manufacturing and retail businesses and 2) the stabilised Hong Kong commercial property market and lower fair value loss expected to be recorded in the property investment business.

The revenue from manufacturing business segment for the year ended 30 June 2022 is expected to substantially increase when compared to the segment revenue of approximately HKD 897,062,000 for the corresponding period in 2021. It is expected to record a segment profit before tax for the year ended 30 June 2022 as compared to a segment loss before tax of approximately HKD 52,109,000 for the corresponding period in 2021. Brand customers are confident in placing orders and sourcing supplies from the PRC because of its stable supply chain and high quality production to support the growing business.

The depreciation of Renminbi against United States dollar in the first half year of 2022 has also improved the gross profit margin of the manufacturing business segment to a certain extent.