China Financial Services Holdings Limited provided unaudited consolidated earnings guidance for the year ended 31 December 2023. For the period, the company expected to record a loss attributable to equity holders of the Company in the range of approximately HKD 150 million to HKD 160 million, compared with a loss attributable to equity holders of the Company of approximately HKD 52.6 million for the year ended 31 December 2022. Based on the information currently available, such increase in loss in the Reporting Period is mainly attributable to the combine effect of: (i) a decrease in revenue generated by the financing business by approximately HKD 69.4 million, representing 34.5% decline, due to the slower-than-expected economic recovery and increase in competition from banks in the Mainland China.

As the banks in the Mainland China had increased their support to small and micro enterprises in response to the policy requirements which resulted in more clients switched to other banks; (ii) compared with the corresponding period in 2022, there was a significant increase in impairment loss of loan receivables as a result of the continuing delayed payment of outstanding loan receivables by several debtors and the decrease in the collateral value on the loan receivables due to the flagging property market in Mainland China in the Reporting Period; and (iii) an increase in impairment of goodwill as a result of the decrease in expected revenue from the operation of the cash-generating unit in the Mainland China.