Veeko International Holdings Limited provided preliminary unaudited consolidated group earnings guidance for the six months ended 30 September 2022. For the period, the group expects to record a loss ranging from approximately HKD 700,000 to HKD 1,500,000 for the 2022 Interim Period, as compared to a loss of approximately HKD 22,320,000 recorded for the same period last year. During the 2022 Interim Period, despite the decrease in the Group's revenue as compared to that for the same period last year as a result of the continuous impact of the pandemic, there was an improvement in the financial performance of each of the Group's segments.

The loss recorded for the cosmetics segment significantly decreased, as compared with that for the same period last year, while the financial performance of the fashion segment turned around from loss-making to profit-making during the 2022 Interim Period. Such improvement was mainly due to improvement in the gross profit margin of the cosmetics segment; decrease in selling and distribution costs for both segments; and increase in other income, in particular the allowances and subsidies related to COVID-19 epidemic received from governments and the exchange gain. Although a decrease in fair value of investment properties is expected to be recorded for the 2022 Interim Period, instead of an increase in fair value of investment properties for the same period last year, the Group is expected to record significantly less loss for the 2022 Interim Period, as compared to that for the same period last year, mainly due to the reasons set out above.

The Group will continue to focus on its business and take a number of contingency measures, which include but not limited to, continuing to negotiate with landlords for rent reduction, proactively lowering inventory levels, and stringently controlling costs and expenditures, and hope to break even as soon as possible.