CNT Group Limited provided earnings guidance for the six months ended 30 June 2022. For the period, the Group is expected to record a significant amount of loss attributable to the Shareholders for the 2022 Six-month Period in the amount between HKD 43.0 million and HKD 49.0 million, as compared with the profit attributable to the Shareholders of HKD 4.3 million for the six months ended 30 June 2021. The loss attributable to the Shareholders for the 2022 Six-month Period was primarily due to the combined effect of (a) the net fair value losses of approximately HKD 5.2 million recorded on the investment properties of the Group in Hong Kong and Mainland China as at 30 June 2022, as compared with the net fair value gains of approximately HKD 15.5 million as at 30 June 2021; and (b) the accounting consolidation of the significant amount of loss attributable to the shareholders of CPM Group Limited, a non-wholly owned subsidiary of the Company.

As disclosed in the announcement of CPM of even date, the significant amount of loss attributable to the shareholders of CPM for the 2022 Six-month Period was primarily due to the following reasons: significant decreases in sales revenue of paint and coating products of the CPM Group in Mainland China during the 2022 Six-month Period as a result of the sluggish real property market in Mainland China and the delayed completion of new residential and commercial property projects, both of which significantly impacted the demand for architectural paint and coating products of the CPM Group; significant increases in the international crude oil prices because of geopolitical issues which have accelerated the prices of a wide range of crude oil by-products for the production of paint and coating products; and general increases in the price levels of raw materials and packaging materials in Mainland China and the payment of staff termination compensation as part of the optimisation of the business process of the CPM Group.