RENHENG Enterprise Holdings Limited provided consolidated earnings guidance for the six months ended 30 June 2023. The board of directors of RENHENG Enterprise Holdings Limited informed the shareholders of the Company and potential investors that based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2023, the Group is expected to record a profit after tax of the range from approximately HKD 0.6 million to approximately HKD 1.0 million for the Relevant Period, as compared to a loss after tax of approximately HKD 2.0 million for the six months ended 30 June 2022. The Board believes that the primary reason for the abovementioned expected increase in profit was mainly attributable to an increase in revenue which was offset by the increase in selling and distribution expenses and administrative expenses.

The expected increase in the Group's revenue is attributable to the Group's revenue contributed by the construction contracts of casing and flavouring system, which is expected to increase by not less than 70% for the Relevant Period compared to that of the Corresponding Period which increase is primarily because of the lifting of the travel restrictions that have led to the completed installations and acceptance check of the abovementioned products.