The board of directors of Gemilang International Limited announced that based on the information currently available to the management of the Company and a preliminary review and assessment of the Group's latest unaudited consolidated management accounts for the year ended 31 October 2022, the Group is expected to record an unaudited consolidated loss attributable to the equity owners of the Company of not more than approximately $1.60 million for the Year, as compared with an audited consolidated profit attributable to the equity owners of the Company of approximately $0.82 million for the year ended 31 October 2021. Based on the information currently available to the Company, the expected loss attributable to the equity owners of the Company for the Year is primarily due to:- (i) the decline in revenue from sales of bus bodies and kits of approximately $8.64 million for the Year as compared to that for the year ended 31 October 2021 caused by the decrease in sales orders under the transition of business environment. The decrease in revenue from sales of bus bodies and kits was partially set-off by the increase in revenue from the sales of parts and provision of relevant services of approximately $2.58 million for the Year as compared to that for the year ended 31 October 2021; and (ii) the net allowance for impairment losses on trade receivables of approximately $0.56 million was recorded for the Year while the Group recorded the net reversal for impairment losses on trade receivables of approximately $0.64 million during the year ended 31 October 2021.

The net allowance for impairment losses on trade receivables recognised during the Year was mainly due to the increase in overdue aging of trade receivables and uncertainty on the repayment of account receivables.