Lung Kee (Bermuda) Holdings Limited informed the shareholders of the Company and potential investors that based on the latest review of the unaudited management accounts and the information of the Group currently available to the Board, the Group is expected to record a net loss of not less than HKD 70 million for the year ended 31 December 2023 as compared to the net profit of HKD 16 million recorded for the year ended 31 December 2022. The anticipated turnaround of the Group's results from profit to loss is mainly due to the continuous low level of the Group's sales revenue caused by the sluggish economic environment coupled with the unavoidable reduction of selling prices under the tough business operating environment. During the year, there are various factors such as the weak consumer sentiment amidst the outbreak of the COVID-19 pandemic for more than 3 years, the weaker-than-expected global economic recovery after the full resumption of cross-border activities over the world, the continuous trade disputes between China and the United States of America, the increase of interest rates by major economies such as the United States of America to curb inflation and the geopolitical tension in various regions, all these factors adversely affect the overall economy which slowed down global production.

It has continuously generated unprecedented challenges and uncertainties to the business operating environment in which the Group operates. The continuous low level of the Group's sales revenue coupled with the reduction of selling prices and the relatively fixed operation costs resulted in the turnaround of the Group's results from profit to loss for the year ended 31 December 2023.