Perfect Optronics Limited provided consolidated earnings guidance for year ended 31 December 2023. For the year, the financial results is expected to turn from profit to loss by recording a consolidated loss attributable to equity holders of the Company within a range of approximately HKD 17 million to HKD 21 million, as compared to a consolidated profit attributable to equity holders of the Company of approximately HKD 4,038,000 for the year ended 31 December 2022. The Company understands that the fair value of the Group's financial asset at fair value through profit or loss in respect of its investment in Mobvoi Inc. had benefited from the capital markets' favor towards stocks of the artificial intelligence sector during fiscal year 2023, and accordingly a significant amount of fair value gain on such financial asset at FVTPL is expected to be recorded in fiscal year 2023, as compared to the fair value loss on such financial asset at FVTPL of approximately HKD 13,260,000 recorded for fiscal year 2022.

However, continuing the trend of the Group's businesses in the first threequarters of 2023, the Group suffered a significant decrease in the sales of health-related products (including rapid antigen test kits for COVID-19, personal hygiene and disinfectant products) and a significant decrease in the sales of display panels and modules during the whole year of fiscal year 2023 as compared to fiscal year 2022. Such decreases had offset the positive effect of the aforesaid expected fair value gain on financial asset at FVTPL of the Group for fiscal year 2023 and resulted in the expected loss of the Group for FY2023 as mentioned above. The Company understands that the aforesaid decrease in the Group's sales of health-related products was principally related to decrease in demand of the Group's health-related products after Hong Kong's return from having anti-epidemic measures back to normalcy since January 2023, while the aforesaid decrease in the Group's sales of display panels and modules was principally related to the reduction in supply of such products which could have served as a market stabilization measure.

The decrease in the Group's sales of display panels and modules during fiscal year 2023 was also due to the decrease in the Group's purchase of such inventories considering the fluctuation in the market prices.