Vedan International (Holdings) Limited provided group earnings guidance for the six months ended 30 June 2022. For the six months, the company announced that based on its preliminary review of the Group's unaudited consolidated management accounts for the six months ended 30 June 2022 (the "Management Accounts"), it is expected that the Group will record a decrease of approximately 70% to 90% in the consolidated net profit for the six months ended 30 June 2022 as compared to that for the six months ended 30 June 2021. The company believes that the expected decrease of approximately 70% to 90% in the consolidated net profit of the Group for the six months ended 30 June 2022 as compared to that for the corresponding period in the last year was mainly affected by the following factors: Due to the onslaught of the resurgence of the COVID-19 pandemic, the effects of the Russia- Ukraine war, the soaring of international energy prices and the slowdown in the global economic growth, the subsidiaries of the Company were severely affected in the supply of raw materials, the production utilization rate, sales volume of some major products as well as the costs of transportation by land and sea freight, which resulted in a significant increase in operating costs.

Although the Group has adopted the strategies for raising prices for its products, the price increase in some products cannot fully compensate the rise in costs and expenses, which ultimately led to a significant year-on-year decrease in the consolidated net profit of the Group.