Sinofortune Financial Holdings Limited provided earnings guidance for the year ended 31 December 2022. The Group is expected to record a loss of approximately HKD 30.7 million for the year ended 31 December 2022 as compared to the loss of approximately HKD 32.1 million as recorded in the corresponding period in 2021. The reasons for the loss in the Reporting Period are mainly attributable to (i) the implementation of the pandemic containment measures under COVID-19 during the Reporting Period and the new wave of COVID-19 outbreak in the People's Republic of China ("PRC") at the last quarter of 2022, the business under the segment of sales of motor vehicles in the PRC has been affected and stagnated; (ii) the impairment loss on trade receivables recognised during the Reporting Period; and (iii) the increase in the finance costs in various business segments.

Although the sales volume of the motor vehicles during the Reporting Period was increased, the profits under this business segment had not improved, which is wholly due to the selling price of the motor vehicles had been marked down in order to boost up the sales and clear the inventories.