State Innovation Holdings Limited provided consolidated earnings guidance for the six months ended September 30, 2022. Based on a preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 September 2022, the Group is expected to record a net loss ranging from approximately HKD 21.2 million to approximately HKD 28.2 million for the six months ended 30 September 2022 as compared with a net loss of HKD 10.8 million for the corresponding period in 2022. The Board considers that the increase in net loss was primarily attributable to (i) the decrease in revenue due to lower value of contracts awarded to the Group; (ii) the decrease in gross profit due to cost overrun in the Group's bored pilling projects, mainly the project located in Hung Hom which experienced delay in work progress; and (iii) the increase in administrative expenses due to the increase in legal and professional fee for the Company's rights issue in 2022.