Leadway Technology Investment Group Limited provided unaudited consolidated earnings guidance for the six months ended 30 June 2023. The group is expected to record a net loss of approximately HKD 4.4 million, as compared to the net profit of HKD 0.1 million for the six months ended 30 June 2022 (the "Prior Period"). The Board considers that the change from net profit to net loss position is mainly attributable to the following factors: staff cost increased to HKD 20.0 million (Prior Period: HKD 16.5 million) mainly due to the increase in headcount and decrease in capitalisation of staff salaries as development costs.

During the Reporting Period, the Group recruited more staff for overseas development in order to expand overseas sales. As a result, the Group's headcount increased from 112 as at 30 June 2022 to 123 as at 30 June 2023. Capitalisation of staff salaries as development costs decreased to HKD 1.8 million as more new products of the Group are in research stage during the Reporting Period; and net exchange gain decreased to HKD 0.3 million (Prior Period: HKD 1.6 million).

This is due to a greater extent of depreciation of Renminbi against Hong Kong dollar during the Prior Period, resulting in a more significant decrease of Renminbi denominated payable balances and hence a larger net exchange gain during the Prior Period.