Orange Tour Cultural Holding Limited provided earning guidance for the year ended 31 December 2022. The board of directors of the Company informed the shareholders (the "Shareholders") and potential investors of the Company
that, based on the preliminary review of the unaudited consolidated management accounts of the Group (the "Management Accounts") for the year ended 31 December 2022 and other information currently available to the Board, the Group expects to record a net loss of not more than RMB B4.0 million for the year ended 31 December 2022 as compared with a net loss of approximately RMB 0.8 million for the year ended 31 December 2021. The Board considers that the net loss was primarily attributable to a significant decrease in revenue for the year ended 31 December 2022 as comparing with the same period in 2021 as a result of the repeated sporadic outbreak of the COVID-19 pandemic (the "Epidemic") for the year ended 31 December 2022 which has greater impact than that of the previous years. The frequent implementation of control measures has discouraged clients to spend their budgets in the marketing and promotion activities especially there was a large wave of the outbreak of Epidemic with a number of infected cases in the first and last quarter of 2022 which resulted in a city-wide lockdowns near the Yangtze River
Delta region. As such, the number of projects undertaken by the Group during the year ended 31 December 2022 has been decreased as a result of the cancellation or delay of the projects. For the delayed projects, it is expected to be completed in the first quarter of 2023.