Art Group Holdings Limited provided preliminary consolidated group earnings guidance for the year ended 30 June 2023. For the year, the group expects to record a net loss of not less than HKD 680 million as compared to a net loss of approximately HKD 88 million for the year ended 30 June 2022. The Board believes that such net loss is primarily due to a significant loss on fair value of the Group's investment properties incurred for the year ended 30 June 2023 as a consequence of the COVID-19 epidemic spreading across the globe since the beginning of 2020, causing the carrying value of the investment properties and the consumption growth continue to drop.

In addition, in the first half of 2023, China's macro-economy has recovered steadily, but the foundation for recovery is not yet solid. The recovery of the real estate market has not been as good as expected. Some real estate companies still have financial pressure.

Under the influence of multiple factors, the supply and demand ends of the commercial real estate market are still weak; and an impairment loss of loan receivable, of which, the loan had been expired after its revised maturity date on 27 April 2023.