North Asia Strategic Holdings Limited provided earning guidance for the three months ended 30th June 2022. The board of directors of North Asia Strategic Holdings Limited informed the shareholders of the Company and the potential investors that, based on the preliminary assessment of the unaudited management account, the Group is expected to record a consolidated loss in the first quarterly results of the Group for the three months ended 30th June 2022 as compared to the consolidated profit of HKD 15,980,000 for the corresponding period of 2021, the main reasons for which are as follows: the Group recorded an exchange loss of about HKD 19 million mainly due to the depreciation of both Japanese Yen and Renminbi against Hong Kong dollar during the three months ended 30th June 2022; due to the continued semiconductor chips shortage and sluggish demand in global mobile phone market from the start of 2022 and strict pandemic control policy causing lockdowns in major cities in China to combat the Omicron outbreak, the Group's customers, mainly mobile phone manufacturers in China, had experienced disruptions in component production and logistics that affected most of their vendor's 2022 Second Quarter shipments, both in China and worldwide. The Group has noted that its customers have been delaying or scaling down their manufacturing facilities acquisition plans which contributed to a significant drop in orders to the Group during the first quarter of 2022.

This has led to a reduction in completion of orders during the three months ended 30th June 2022 and consequently a decrease in the revenue of the Group's hi-tech distribution and services division by about 37% during the three months ended 30th June 2022 as compared to the corresponding period of 2021 while the operating costs do not reduce at the same rate as the revenue.