The board of directors of China Beidahuang Industry Group Holdings Limited informed the shareholders of the Company (the "Shareholders") and potential investors that, based on the preliminary assessment of the management accounts of the Group for the year ended 31 December 2021 and other information currently available, the Group is expected to record a net loss after taxation of not less than HKD 150.0 million for the year ended 31 December 2021 as compared to a net profit after taxation of approximately HKD 5.5 million for the year ended 31 December 2020. The expected turnaround from net profit after taxation to net loss after taxation was mainly attributable to the continued impact of the COVID-19 pandemic for the year ended 31 December 2021 and lead to (i) the provision of allowance of expected credit loss on loan and other receivables; (ii) significantly impairment loss on goodwill in relation to rental business; and (iii) the share of loss of associates.