China Rare Earth Holdings Limited provided earnings guidance for the year ended 31 December 2022. The board of directors of the Company informed the shareholders of the Company and the potential investors that, based on the unaudited consolidated results of the Company for the year ended 31 December 2022, the Group is expected to record a loss of over HKD 300 million, as compared to a profit of approximately HKD 25.4 million for the year ended 31 December 2021. Such shift from profit to loss was mainly attributable to (i) the impact brought by the continued COVID-19 pandemic which led to decrease in sales in both rare earth business and refractory materials business; and (ii) the expenses arising from the payment of service fee as stated in the Inside Information Announcement in relation to the provision of maintenance services for the soil and groundwater (the "Services").