Rimbaco Group Global Limited provided consolidated earning guidance for the year ended 31 October 2022. The board of directors of the Company (the "Board") wishes to inform the shareholders and potential investors of the Company that, based on a preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 October 2022 ("Year 2022"), it is expected that the Group will record a decrease in the consolidated net profit attributable to the owners of the Company of not less than 70% as compared to the consolidated net profit attributable to owners of the Company for the year ended 31 October 2021 of approximately MYR 12.8 million. The decrease in the consolidated net profit for the Year 2022 was mainly attributable to the increase in cost of sales as a result of (i) increase in material price due to global inflation, (ii) the increase in labour cost and subcontractor cost due to market shortage of construction workers; and (iii) Additional project preliminaries and staff cost due to prolonged contract duration brought on by the pandemic.

The above factors led to a decrease in the gross profit margin of the projects undertaken by the Group in the Year 2022.