The board of directors of Natural Beauty Bio-Technology Limited announced that based on the preliminary assessment of the latest unaudited consolidated management accounts of the Group for the year ended 31 December 2022 and the latest information available to the management of the Group, the Group is expected to record a net loss of approximately HKD 29.6 million for the year ended 31 December 2022, as compared with the net profit of approximately HKD 35.3 million recorded for the corresponding period in 2021. Such change is mainly attributable to the decrease of revenue both in the PRC and Taiwan markets: (i) As impacted by the COVID-19 and the persistent social distancing and quarantine measures imposed by the authority throughout the majority of the year 2022, the economic growth of mainland China slowed down significantly. The COVID-19 spread throughout the entire country, and most franchise stores were prohibited to operate in full capacity.

Furthermore, two-month lockdown of Shanghai resulted in no production and no supply in April & May of 2022, which led to the decrease of the Group's revenue in PRC market. (ii) The "coexist with virus and effective epidemic control" policy implemented in Taiwan prompted the number of COVID-19 cases in Taiwan to drastically increase in the first half of 2022 and continued to increase ever since, which led to the decrease of the Group's all-channels revenue in Taiwan market.