HG Semiconductor Limited provided consolidated earnings guidance for the six months ended 30 June 2022. Based on a preliminary review of the Group's latest unaudited condensed consolidated management accounts for the six months ended 30 June 2022 and the information currently available to the Board, the Group expects to record a loss of not more than RMB 52 million for the Period, as compared to a loss of approximately RMB 41.2 million for the six months ended 30 June 2021. The Board considers that the expected increase in the loss for the Period was primarily attributable to the significant drop in the Group's revenue, from approximately RMB 75.3 million for the Previous Period to approximately RMB 43.4 million for the Period.

The reason behind the drop was mainly due to the adverse impact of the COVID-19 pandemic and the emergence of highly transmissible variants, which led to a poor market environment with suppressed demand and delayed procurement plans from the Group's customers in the People's Republic of China.