Risecomm Group Holdings Limited provided preliminary consolidated earnings guidance for the six months ended June 30, 2022. For the period, the group expects to record an increase in net loss by not less than approximately 84% as compared to the net loss of approximately RMB 17.5 million for the six months ended June 30, 2021. Based on the information currently available to the Board, the expected increase in net loss for the Period was primarily due to the recognition of a net allowance for impairment losses on financial assets for the Period as compared to the recognition of a net reversal for impairment losses on financial assets for the six months ended 30 June 2021.

The Net Reversal of approximately RMB 12.7 million for the six months ended 30 June 2021 was mainly attributable to the Group's collection efforts made to recover the credit-impaired trade and other receivables which was one-off and did not recur during the Period. The Group has been and will continue to be implementing actions to facilitate timely collection of outstanding receivables.