Ta Yang Group Holdings Limited provided consolidated earnings guidance for the six months ended June 30, 2022. For the six month, the company expects to record a loss attributable to owners of the Company ranging from approximately HKD 40 million to approximately HKD 45 million for the six months ended 30 June 2022, as compared with approximately
HKD 18.4 million for the six months ended 30 June 2021. Such change in the loss attributable to owners of the Company was mainly due to (i) tightened gross profit margin
which was caused by decline in operational efficiency in the production base of the Group in mainland China under the COVID-19 epidemic and higher material costs under the
worldwide inflation; (ii) certain one-off expenditures which were incurred in the launching phase of the retail business in the United Kingdom; and (iii) impairment of interests in
associates in the mainland China resulting from the continuous adverse impact of the COVID-19 epidemic.