The board of directors of Brightstar Technology Group Co., Ltd. informed the shareholders and potential investors of the Company that, based on a preliminary review of the unaudited consolidated management accounts of the Company for the year ended 31 December 2023, the Group is expected to record a net loss of approximately HKD 27.8 million for the Year as compared to a net profit of approximately HKD 7.5 million for the seven months ended 31 December 2022. Based on the information currently available, the expected loss for the Year was mainly attributable to the combined effect of: (i) the reduction of operation profit caused by the reduction of revenue generated from the information technology consulting services provided to customers by the Group; (ii) the increase in cost of services; (iii) the significant increase in administrative expenses incurred for the management of different segments of business and for the hotel reservation and convention planning business since March 2023, as well as the fact that the Year is a longer accounting period as compared with the 2022 Reporting Period; and (iv) the absence of one-off gain on bargain purchase on the acquisition of a subsidiary of the Company in the Year, which was recorded in 2022 Reporting Period.