Realord Group Holdings Limited provided consolidated earnings guidance for the year ended 31 December 2023. For the year, the group is expected to record a net profit attributable to the Shareholders ranging from HKD 70 million to HKD 80 million as compared to a net profit attributable to the Shareholders of approximately HKD 112.8 million for the year ended 31 December 2022 (?FY2022?). The gross profit of the Group has increased by approximately HKD 32.0 million to HKD 319.4 million (FY2022: HKD 287.4 million).

However, the net profit attributable to Shareholders for Fiscal Year 2023 recorded a decrease compared to Fiscal Year 2022 as a result of the followings: the decrease of net exchange gain for Fiscal Year 2023 by HKD 298.7 million to HKD 59.4 million (FY2022: HKD 358.1 million). The net exchange gain was mainly resulted from the depreciation of Renminbi against Hong Kong Dollar and corresponding translation of liabilities denominated in Renminbi; an impairment loss on goodwill on department store business in the amount of approximately HKD 63.2 million (FY2022: Nil), which was mainly resulted from the slow economic recovery and increased trend of online shopping behavior in retail sector; and the increase in finance costs by approximately HKD 38.6 million. The aforesaid negative effect on the net profit attributable to Shareholders for Fiscal Year 2023 is partially offset by the followings: the decrease in administrative expenses for Fiscal Year 2023 by approximately HKD 40.0 million, which was mainly attributable to the reduction of staff cost, and legal and professional fees; a reversal of provision for impairment loss in properties under development, net of deferred tax expenses, of approximately HKD46.6 million (FY2022: provision for properties under development, net of deferred tax credit: approximately HKD 75.2 million), which was primarily related to the effect of commencement of construction work of the Qiankeng Property project in fourth quarter of 2023; and net gain on fair value change (net of deferred expenses) of investment properties attributable to Shareholders in an amount of approximately HKD 828.6 million (FY2022: HKD 658.8 million).