Ka Shui International Holdings Limited provided unaudited consolidated earnings guidance for the year ended 31 December 2023. for the year, the Group is expected to record a net loss attributable to the owners of the Company in the range of approximately HKD 24.9 million to HKD 31.9 million for the year ended 31 December 2023, as compared with a net profit attributable to the owners of the Company for the corresponding period in 2022 of approximately HKD 74.8 million. The net loss was mainly attributable to the following factors: (i) substantial costs and expenses incurred by the Group for the initial setup of production facilities in Mexico after the acquisition in July 2023 of the Global Plastic Solutions, S. de R.L. de C.V. and Avery Plastics Consulting Group Inc., the group of which owns a manufacturing and assembling base of plastic products in Mexico; and (ii) the substantial economic pressures faced by Western countries due to inflation and interest rate hikes by the US Federal Reserve which weakened consumer sentiment.

This caused a notable downturn in demand across the Group's key markets and thus led to a decrease in the Group's sales revenue of approximately 14.8% as compared with the corresponding period in 2022. Amid the ongoing geopolitical tensions and reshaping of the global supply chain landscape, the Group will take a proactive stance to develop new business and new markets as well as new products and technology to strategically diversify its business ventures across multiple fronts to navigate the increasingly complex landscape of global trade and logistics and continue to place high priority on implementation of stringent cost control measures.