Tai Hing Group Holdings Limited provided unaudited consolidated earnings guidance for the six months ended June 30, 2022. For the period, the company expected to record loss attributable to the Shareholders in the range of approximately HKD 45 million to HKD 55 million. Based on the information currently available, the Board is of the view that the expected loss attributable to the Shareholders for the Review Period was mainly due to the following: The outbreak of the fifth wave of the novel coronavirus in Hong Kong during the Review Period, and the HKSAR Government's implementation of dine-in restrictions and stricter social distancing policies had a negative impact on the Group's operations and business.

Temporary suspension of business of some restaurants due to the Pandemic and the weak market sentiment led to a drop in the Group's revenue and profits; Due to the raging Pandemic in the Mainland China in the Review Period, government authorities in some regions such as Shenzhen, Guangzhou, Shanghai and Beijing implemented a series of measures to curb the Pandemic, including city lockdown, closed-loop management and dine-in restrictions, and thus the operation and performance of the Group's restaurants in these regions were adversely affected; and Provision for impairment of property, plant and equipment and right-of-use assets was made for the Review Period.