Royale Home Holdings Limited provided unaudited consolidated earnings guidance for the year ended December 31, 2023. For the period, the company estimated that the Group will record a loss for the year approximately RMB380 million, as compared to the profit for the year of approximately RMB 10.6 million (equivalent to approximately HKD 12.4 million) for the year ended 31 December 2022. The turnaround from profit to loss was primarily attributable to (i) a significant drop in overall gross profit margin primarily due to a poor business environment and sluggish market, leading to discounted selling prices and increase in cost of production of furniture products; (ii) an increase in selling and distribution expenses and administrative expenses (including internal restructuring costs); (iii) a reduction in reversal of over-provision of income tax; (iv) an increase in general provision on trade receivables, other receivables and inventories; (v) revaluation loss in respect of investment properties; (vi) increase in share of losses of associates; and (vii) increase in finance cost.