Nomad Technologies Holdings Limited provided preliminary unaudited group earnings guidance for the nine months ended March 31, 2022. For the period, the group expects to record a net loss of approximately MYR 13.6 million as compared to the net profit of approximately MYR 0.8 million for the nine months ended March 31, 2021. The board considered the expected net loss for the nine months ended March 31, 2022 is mainly attributable to: a decrease in the gross profit margin from approximately 33.4% for the nine months ended March 31, 2021 to approximately 25.0% for the nine months ended March 31, 2022 mainly due to the increase in the cost of network equipment and hardware; and an increase in the selling expenses of approximately MYR 10.2 million mainly due to the increase in the marketing cost of the e-commerce business in the PRC, which is carried out by the China Mebugs Technology Holding Limited and its subsidiaries in the PRC.

China Mebugs was acquired by the Group in July 2021 to expand the Group's market to the PRC.