The Board of Directors of Yongmao Holdings Limited issued a profit guidance for the second half financial results for the financial year ended 31 March 2022. Based on the preliminary assessment of the Group's unaudited financial results for second half of 2022, the Group is expected to record a significantly lower net profits for the second half of 2022 compared to the same period last year and total comprehensive loss attributable to shareholders. The decline in net profits is due to lower revenue in the People's Republic of China in light of the supply chain bottlenecks, a lackluster property market and COVID-19 outbreak.

Land transportation and sea freight in the PRC had increased significantly during the period under review due to supply shortage. In addition, the Company is expected to record a significant fair value loss on its financial assets, at FVOCI, leading to a total comprehensive loss attributable to shareholders for second half 2022. Net profit and total comprehensive income for the full year ended 31 March 2022 is expected to remain positive.