Michong Metaverse (China) Holdings Group Limited provided unaudited Group earnings guidance for the year ended 30 June, 2022. For the year, the Group is expected to record a net loss of approximately RMB 20.7 million as compared to the net loss of approximately RMB 2.3 million for the year ended 30 June 2021. The Board considers the expected increase in net loss for the year ended 30 June 2022 is mainly attributable to: an increase in the selling expenses of approximately RMB 22.9 million mainly due to the increase in the marketing cost of the e-commerce business in the PRC, which is carried out by the China Mebugs Technology Holding Limited (China Mebugs) and its subsidiaries in the PRC.

An increase in the administrative and other operating expenses of approximately RMB 7.5 million mainly due to increase in staff cost for administrative and management personnel (including Directors) by approximately RMB 2.8 million; increase in depreciation of property, plant and equipment by approximately RMB 1.7 million; and increase in repairs and maintenance of property, plant and equipment by approximately RMB 1.2 million.