SOCAM Development Limited provided group earning guidance for the year ended 31 December 2022. For the period, the Group expects to record a net loss of around HKD 160 million (before possible further fair value losses on the Group's investment properties in the second half of 2022 of around HKD 50 million, which is subject to the assessment of independent professional property value), as compared to a net profit of HKD 76 million for the year ended 31 December 2021. The expected net loss is primarily attributable to the foreign exchange loss of approximately HKD 245 million as a result of a 9.3% depreciation of Renminbi against Hong Kong dollars, as compared to the foreign exchange gain of approximately HKD 73 million recognized for a 2.9% appreciation in the Year 2021.

Without taking into account the aforesaid foreign exchange loss on Renminbi depreciation and the possible further fair value losses on the Group's investment properties in the second half of 2022, the Group expects to record a net profit of around HKD 80 million. Despite the expected net loss, the Board remains cautiously optimistic about the overall prospects of the Group as its construction business in Hong Kong, being the core operation of the Group, continues to be a profitable operation with strong capabilities in the public works sector and a healthy order book.