Coolpad Group Limited provided earnings guidance for the year ended 31 December 2022. For the period, the group the loss attributable to the owners of the Company is expected to range from approximately HKD 610 million to HKD 640 million, as compared to the loss attributable to the owners of the Company of approximately HKD 572 million for the year ended 31 December 2021 (the "Preceding Period"). Based on an analysis of the information currently available to the Group, the increase in the expected loss for FY2022 as compared to the Preceding Period is primarily attributable to: (a) A substantial decrease in the Group's revenue for FY2022 by approximately HKD 459 million to approximately HKD 206 million and the Group recorded a gross loss of approximately HKD 141 million as compared with a gross profit of HKD 36 million for the Preceding Period.

In light of the depressed domestic market due to the COVID-19 pandemic and fierce competition in the PRC's mobile phone market, sales of the new mobile phone product launched by the Group in June 2022 was less than expected, and a more aggressive sales incentive policy was adopted by the Group. (b) Due to the large fluctuation of RMB exchange rate in FY2022, the Group recorded an exchange loss of approximately HKD 83 million as compared with an exchange gain of HKD 42 million for the Preceding Period. Besides, share of losses of associates and joint ventures was approximately HKD 84 million for FY2022, which is much higher than that of HKD 33 million recorded for the Preceding Period.