The board of directors of the China Environmental Resources Group Limited announced that, based on the latest information currently available to the Board, it is expected that the Group's unaudited loss for the six months ended 31 December 2021 will decrease by not less than 45% compared to the loss for the corresponding period in 2020 of approximately HKD 12.9 million. The Board considers that such decrease was attributable to the combined effects of the (i) increase in gross profit to approximately HKD 9.9 million mainly due to the increase in revenue; (ii) increase in other income to approximately HKD 4.2 million mainly due to wavier of rental payments because of COVID-19; (iii) decrease in administrative and operating expenses to approximately HKD 19.1 million mainly due to decrease in staff cost and expenses related to short-term leases; (iv) increase in gain arising from changes in fair value less costs to sell of biological assets to approximately HKD 3.8 million; (v) increase in net gain on fair value changes in investments at fair value through profit or loss to approximately HKD 0.2 million; and (vi) no provision for impairment loss of intangible assets during the six months ended 31 December 2021.