AGTech Holdings Limited provided consolidated earnings guidance for the six months ended June 30, 2023. For the period, the company expects to record a profit for the period of not less than HKD 15 million for the six months ended June 30, 2023, as compared with a loss of approximately HKD 84.9 million as recorded for the six months ended June 30, 2022. The expected turnaround from loss to profit as mentioned above was primarily attributable to the following combination of factors: there was an increase in revenue of the Group by not less than HKD 155 million for 2023H1, mainly due to (a) the consolidation of the financial statements of Macau Pass Holding Limited and its subsidiaries (the "Macau Pass Group") into the financial statements of the Group throughout the entire 2023H1; whereas the financial statements of the Macau Pass Group were consolidated into the financial statements of the Group only from March 24, 2022 (being the date of completion of acquisition of the Macau Pass Group by the Group) to June 30, 2022 for 2022H1; (b) the increase in revenue of the Group's lottery distribution business for 2023H1 as compared to 2022H1, and (c) the increase in revenue of the Group's electronic payment, lifestyle, games and entertainment, marketing technical services and e-commerce businesses in Macau by not less than HKD 30 million for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022, as a result of the gradual economic recovery post-COVID 19, the increase in tourist arrivals in the city and no further extension on the exemption on transaction service fees charged to small and medium enterprises after the end of February 2023.

Nevertheless, the aforesaid increase in revenue of the Group was partially offset by a rise in other operating expenses of the Group by not less than HKD 78 million for 2023H1, such as (a) an increase in service fees paid to other payment service providers by not less than HKD 50 million in respect of the electronic payment services of a subsidiary of the Company, Macau Pass S.A., (b) an increase in distribution expenses related to lottery distribution by not less than HKD 12 million, and (c) an increase in costs incurred for e-wallet services' customer loyalty programme by not less than HKD 8 million for 2023H1; there was an increase in the depreciation and amortization expenses of the Group to not less than HKD 32 million for 2023H1, as compared to the depreciation and amortization expenses of approximately HKD 23.7 million for 2022H1, mainly due to the consolidation of the depreciation and amortization expenses of the Macau Pass Group into the financial statements of the Group and the recognition of amortization expenses on the fair value of identifiable intangible assets, i.e. brand name, customer and business relationships arising from the acquisition of the Macau Pass Group for the entire 2023H1; whereas such expenses were consolidated into, and recognized in, the financial statements of the Group only from March 24, 2022 to June 30, 2022 for 2022H1; there was an increase in employee benefits expenses of the Group by not less than HKD 20 million for 2023H1 as compared to such expenses of approximately HKD 55.5 million for 2022H1, mainly due to the consolidation of the Macau Pass Group's employee benefits expenses for the entire 2023H1; whereas such expenses were consolidated into the financial statements of the Group only from March 24, 2022 to June 30, 2022 for 2022H1; there was an increase in net finance income of the Group to not less than HKD 32 million for 2023H1, as compared to the net finance income of approximately HKD 9.1 million for 2022H1, mainly due to the increase in average bank deposits balance of the Group for 2023H1 (including balances in respect of the outstanding living subsidy and outstanding third round of funds under the Electronic Consumption Benefits Plan in Macau to be distributed to the registered card/e-wallet users of Macau Pass S.A.) and the increase in market interest rates for 2023H1 as compared to 2022H1; and it is expected that there will be a fair value gain on the convertible term loan facilities in the maximum amount of INR1,319.4 million (or approximately HKD 137.3 million) provided by the Group to, and fully utilized by, its 45%-owned joint venture company in India, First Games Technology Private Limited (formerly known as "Paytm First Games Private Limited"). Based on the preliminary assessment of the Company, it is anticipated that any such fair value gain will be not more than HKD 2 million for 2023H1, subject to the final assessment by the valuer; whereas a loss on fair value changes of such financial assets of approximately HKD 26.6 million was recorded for 2022H1.