The board of directors of Finsoft Financial Investment Holdings Limited informed the shareholders of the Company and potential investors that, based on the information currently available to the Board, the Group expects to record a decrease in net loss of not less than 45% for the six months ended 30 June 2022, as compared to a net loss of approximately HKD16.2 million recorded for the six months ended 30 June 2021. The decrease in net loss was primarily due to the decrease in the provision of impairment loss on loans and interest receivables provided for 2022 Interim as there was no material change in the credit status and credentials of the loans and interest receivables of the Group as at 30 June 2022 and 30 June 2021 using the Group's expected credit loss model, and so no material impairment loss was recognised for 2022 Interim. The provision of impairment loss on loans and interest receivables in an aggregate amount of approximately HKD 13.4 million was recognised in 2021 Interim.

The provision of impairment losses on loans and interest receivables are non-cash items and do not have an immediate impact on the Group 's cash flows and operations.