Grown Up Group Investment Holdings Limited provided earnings guidance for the six months ended June 30, 2022. For the period, the company expected to record a net loss ranging from approximately HKD 5 million to approximately HKD 6 million as compared to a net profit of approximately HKD 4.1 million for the six months ended 30 June 2021. The expected net loss for period was primarily attributable to a lower average gross profit margin for HY2022 as a result of the increase in production costs and the relatively larger increase in sales of essential bags with lower margins during HY2022; the recognition of impairment loss on the outstanding trade receivable due from a former customer of the Group of approximately HKD 3.6 million; and the recognition of fair value loss of approximately HKD 4.4 million relating to the value of the surrender charge of a key man insurance policy as at 30 June 2022.

Details of the Policy have been disclosed in the Company's other announcement dated 8 August 2022.